Hybridan Small Cap Feast

Joiners: Savannah Energy’s (SAVE.L) shares have been re-introduced following a reverse take over in connection with the acquisition of Exxon Mobil Corporation’s entire upstream and midstream asset portfolio in Chad and Cameroon.

Leavers: No leavers today.

Banquet Buffet

Belluscura 72p £88.6m (BELL.L)

The medical device developer focused on lightweight and portable oxygen enrichment technology, announced it has entered into its first international distribution agreement outside of the US, with MedHealth Supplies of South Africa.
Following the distribution agreement, MedHealth has placed orders for both 2022 and 2023, with deliveries to commence immediately. MedHealth is a leading durable medical equipment provider in South Africa distributing durable medical equipment throughout South Africa and neighboring countries, and was recently awarded oxygen supply contracts based on the ability to deliver Belluscura’s X-PLOR portable oxygen concentrator.

Caracal Gold 0.8p £15m (GCAT.L)

The East African gold producer with over 1,300,000oz JORC-compliant gold resources announced sample assay results from its Diamond Drilling programme on the Vim Rutha prospect, a shear zone of about 4.9km parallel to the known orebody at the Kilimapesa Hill deposit at the Kilimapesa Gold and Mining Operations in Kenya.  The drilling intercepted, on several occasions and over a distance of more than 2km from west to east, one or more mineralised structures of significant thickness located a few hundred metres south of Kilimapesa Hill.

Dianomi 110p £33m (DNM.L)

The provider of native digital advertising announced a trading update for the year to 31 December 2022.  While revenues are expected to be in line with 2021 levels, the decrease in gross margin as previously announced on 21 September 2022, alongside the Group’s investment in developing the talent base of the business to support future growth, means that Adjusted EBITDA* for the year to 31 December 2022 is expected to be lower than consensus market expectations at approximately half of that for the prior year. Unaudited cash at 30 November remains strong at £10.8m. 

Invinity Energy Systems 53p £61.6m (IES.L)

The global manufacturer of utility-grade energy storage announced the sale of a 1.5 MWh Invinity VS3 flow battery system to Hyosung Heavy Industries for use by Korea Electric Power Corporation, Korea’s national electricity utility.  An advance payment for the batteries delivered under this order is due in 2022. Delivery and commissioning of all seven VS3s is expected towards end of H1 2023, with the remaining revenue associated with the project to be recognised in H2 2023.

React Group 1.075p £11.4m (REAT.L)

The specialist cleaning, hygiene and decontamination company announced a further update since their Trading Update of 26 October 2022 in which they reported a positive performance for the year ended 30 September 2022 and a strong start to the current financial year.  LaddersFree has continued to perform strongly. In the three months to 31 August 2022, turnover was over £1m. Trading in the last three months of FY22 and into the current financial year, has been especially strong across the Group. All divisions continue to win a broad spread of business providing positive margin contribution and cash generation as well as providing long term income and underpinning future performance. This positive start underpins the Board’s optimistic outlook for the current financial year.

Shield Therapeutics 7.25p £18.7m (STX.L)

The commercial stage pharmaceutical company, announced a proposed equity fundraising by way of a subscription and placing to raise approximately £14.7m in aggregate at a price per share of 6p.  The Company also announces it will be making an Open Offer to Qualifying Shareholders to raise up to a further £3.9m.  Shield also announced today a US$10m extension of its existing convertible shareholder loan facility with AOP Health International Management AG and a collaborative sales agreement with Viatris Inc., a global healthcare company, which includes an up-front cash payment to Shield of US$5m. When combined with the Equity Fundraising, that results in additional financing to Shield of approximately US$37.7m (before expenses but assuming full take up under the Open Offer), which the Directors believe will enable Shield to, among other things, drive significant growth in sales of Accrufer® in the US. 

Sosander 21.5p £47.6m (SOS.L)

The UK fashion brand announced its financial results for the six months ended 30 September 2022 and an update on current trading.  Continued revenue growth of +72%, delivering the Company’s second six-month period of positive PBT. Momentum has continued into the second half of the financial year with record sales months in October and November, trading in line with market expectations for the full financial year.

Synectics 115p £20.5m (SNX.L)

The company involved in the design, integration and support of advanced security and surveillance systems, announced a trading update for its financial year ended 30 November 2022.  Trading has continued in line with the Board’s expectations as set out in the Company’s interim results announcement of 12 July 2022. Second half profit is expected to be higher than in the first half, resulting in an underlying profit for the full year being slightly ahead of market expectations.
The Group’s cash balance as at 30 November 2022 was £4.1m (31 May 2022: £4.2m, 30 November 2021: £4.6m), with undrawn bank facilities of £3.0m.

TMT Investments $2.85 $89.6m (TMT.L)*

The venture capital company investing in high-growth technology companies, announced a portfolio update.  The majority of TMT’s portfolio companies, including its largest holdings, continue to demonstrate good business progress and are adapting well to the challenges of the current environment.  TMT’s largest portfolio holding, ride-hailing and food delivery platform Bolt (www.bolt.eu) has been finding its lower-cost competitive advantage very timely in today’s environment, enabling it to continue delivering notable revenue growth and margin improvements, with the additional security offered by its very sizeable cash reserves following its successful capital raise in January 2022.  TMT continues to make very selective investments into new and existing portfolio companies when attractive opportunities arise.  As of 12 December 2022, TMT had approximately US$10.2m (unaudited) of cash and bank deposits with no debt.

Wishbone Gold 5.75p £11.2m (WSBN.L) 

The gold exploration company announced positive first assay results from the maiden drilling program at the Company’s Red Setter Gold-Copper Project in the Patersons Range area in Western Australia.  Initial assay results have confirmed the geological observations of a broad hydrothermal system with gold and copper associated with quartz-carbonate-sulphide veins present within all lithology types, and often with breccia textures.  A recently completed gravity survey combined with the previously completed magnetic survey, indicates the scale of the hydrothermal system with structures extending over a strike in excess of 3km, with depths ranging from 50m->2,000m.

What’s cooking in the IPO kitchen?

Celsius Resources intends to join AIM. Currently ASX listed, Celsius is a natural resources exploration and development company principally seeking to explore and develop potential world-class copper-gold assets in the Philippines and a cobalt asset in Namibia. Amount planning to raise and anticipated market cap TBC. Expected late December 2022. 

Smarttech247 Group intends to join AIM.  The company is a provider of AI enhanced cybersecurity services providing automated managed detection and response and has raised £3.67m to support its continued expansion into new products and geographies, development of its proprietary technology and for general working capital purposes. Admission is expected to take place on 15  December 2022 under the TIDM S247.

Conviction Life Sciences, a newly established closed-ended investment company managed by Plain English Finance Limited, is seeking to list on Premium Segment of the Main Market of the London Stock Exchange, to invest in a conviction portfolio of life sciences and medical technology businesses, primarily in the UK, Europe and Australasia. The Company will invest in both Publicly Traded and Private companies – c. 70% and c. 20% of the total portfolio value respectively. The Company will target an annualised Total NAV Return of 20% over the long-term. Targeting to raise c.£100m. Date 16 December.

Kistos Holdings intends to join AIM. The Company was incorporated to act as a new holding company for the group companies 0f Kistos plc (KIST), a holding company with the objective of creating value for its investors through the acquisition and management of companies or businesses in the energy sector. Anticipated Market Cap £327m. Expected 22 Dec 2022.

*A corporate client of Hybridan LLP

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