Hybridan Small Cap Feast

A round up of the day’s news brought to you by the team at small-cap broker and advisor Hybridan.

Dish of the day

Oxford Cannabinoid Technologies Holdings Plc (OCTP.L) has joined the Main Market (Standard). A pre-revenue pharmaceutical company with an objective to develop cannabinoid-based prescription medicines approved by regulatory agencies including the US Food and Drug Administration, the European Medicines Agency, and the Medicines and Products Healthcare Regulatory Authority. Their drug development strategy includes the development of proprietary cannabinoid derivatives, natural phytocannabinoids and other drug compounds that interplay with the endocannabinoid system. The company has raised £16.5m with a market cap of £48m.

Off the menu

No Leavers Today.

Banquet Buffet

Alba Mineral Resources 0.27p £16.8m (ALBA.L)

The second phase of the Company’s underground drilling programme at the Clogau-St David’s Gold Mine  has commenced. This follows the successful 559m Phase 1 underground drilling programme completed in October 2020. Phase 1 intersected what Alba believes to be the westerly, 550-metre extension of the Clogau Main Lode, source of most historic production at Clogau-St David’s Gold Mine. The main focus of Phase 2 is to continue with the exploration and delineation of the Main Lode to the north. Phase 2 surface drilling is also progressing well, with two holes completed to date.

Arkle Resources 0.875p £2.8m (ARK.L)

Results from the first hole of the twelve hole diamond drilling programme being undertaken at the Company’s 100% owned Mine River Gold Project in Wicklow / Wexford. Five intersections, best 4.69 g/t from 12.60 to 14.40 metres The 1,000 metre drilling programme has been designed to follow up the Company’s recent visible gold find at Mine River. The drilling programme is fully funded and included in the 2021 budget.

Comptoir Group 9.75p £11.96m (COM.L)

The owner and/or operator of Lebanese and Eastern Mediterranean restaurants, today announces that, following the lifting of the lockdown restrictions on Monday 17th May, all 21 company owned and 3 franchise managed sites have now reopened to trade. All appropriate measures are in place to ensure government guidelines concerning social distancing and customer safety are fully adhered to. 

Circassia 33.2p £138.8m (CIR.L)

AGM trading update from the medical device company focused on respiratory diagnostics and monitoring. Circassia is now exclusively focussed on the Niox business. Trading in the first four months of the year has been slightly ahead of management’s expectations, principally as a result of a strong performance in the Research business. Unaudited sales for the four months to the end of April were £9.3m, 9% ahead of the same period in 2020 (£8.5m). As previously communicated, the breakeven point for the Niox business is now lower, reflecting tight cost control measures implemented under the new management team, and the change in the sales and marketing strategy, with greater emphasis on third party distribution. Accordingly, while this level of sales is circa 7% lower than normalised sales for the same period in 2019 (pre- pandemic), the Niox business (excluding Head Office costs) traded at close to EBITDA breakeven over the four-month period.  This performance is in line with management expectations at this time for the full year.

Induction Healthcare 85p £35.7m (INHC.L)

Proposed acquisition of Attend Anywhere, a private Australian-based video consultation provider in the UK. The consideration for the Acquisition comprises £15.56m in cash plus an amount equal to Attend Anywhere’s net assets at completion of the Acquisition. Also looking to raise £25m at 70p. The unaudited financial statements of Attend Anywhere for its financial year ended 30 June 2020 showed revenue of £4.6m and an EBITDA loss of £0.1m. Following its success with a national contract with NHS Scotland, Attend Anywhere won a £4.85m national contract with NHS England in the first calendar quarter of 2020, which was quickly followed by a further national contract with NHS Wales. The pro forma summary unaudited management accounts of Attend Anywhere for the 12 months ended 31 March 2021 showed revenue of £9.7m and EBITDA of £3.3m.

Katoro Gold 1.15p £4.4m (KAT.L) (Kibo Energy* 25.37% stake)

The Tanzanian focused exploration and development company announced financial  statements for the year ended 31 December 2020. The Company entered into a binding conditional agreement to form a 50/50 unincorporated joint venture in South Africa, focused on the reprocessing of an existing 1.34m ounce of gold JORC compliant tailings resource. The Company completed technical work related to the upgrade and restatement of the Blyvoor Gold Tailings Project resource statement.   Significant progress was made towards securing the necessary funding. The Haneti Joint Venture was further strengthened, with Power Metal Resources plc (LON:POW) acquiring a further 10% taking their holding to 35% with Katoro retaining 65%.The commencement of a 2,000 m RAB drilling programme at the Haneti Project which consists of approximately 50 holes drilled. The programme seeks to verify the existence of near surface nickel sulphide mineralisation at each target whilst increasing the geological understanding in order to ensure the follow-up diamond drill programme can be optimised. Post period end: Drilling results from the RAB drill programme carried out at the Haneti project, confirmed the results from previous exploration work done, which was the primary objective. The latest results provided the confirmation desired to take the next step in the exploration strategy for Haneti.Raised £960k (gross) through a Placing and Subscription of 48,000,000 new ordinary shares of 1.00p each in the capital of the Company at 2.00p per share. At Blyvoor Gold Tailing project, the technical team continue to work towards conclusion of all preparatory work and funding negotiations.

Kibo Energy* 0.28p £6.7m (KIBO.L)

The multi-asset energy development company, notes that its 55% subsidiary, MAST Energy Developments PLC today announced an exciting update, in which the company announced that its Bordesley project has now reached construction-ready status following a rigorous work programme since its LSE listing on 14 April 2021. MAST with adequate funding available, also implemented a work programme to review and evaluate its available pipeline of sites to ensure successful and timely delivery of its business strategy stated in the Company Prospectus. Full RNS can be viewed at: https://polaris.brighterir.com/public/mast_energy_developments/news/rns/story/wklm52x 

Physiomics* 6.55p £6.4m (PYC.L)

The consultancy using mathematical models to support the development of drug treatment regimens and personalised medicine solutions, has been awarded two further contracts by existing client Bicycle Therapeutics that it expects to be completed over the next six months. These projects relate to two of Bicycle’s lead clinical assets and build on earlier work completed by Physiomics on these assets. Physiomics CEO, Dr Jim Millen, commented: “We are delighted that Bicycle continues to commission new projects with us and believe that it demonstrates the strength and depth of the relationship we have developed with this key client.”

Tracsis 845p £248m (TRCS.L)

The Department for Transport has now published the Williams-Shapps Plan for Rail, which is available to view here: https://www.gov.uk/government/publications/great-british-railways-williams-shapps-plan-for-rail . Recent strategic investments made across the Tracsis Group in both new technology and acquisition appear to be well aligned with the future direction of the rail industry. With the rail industry focused on improving safety, improving timetabling and on time train performance, increasing pre-emptive/asset condition maintenance and accelerating innovation in areas like pay as you go smart ticketing and delay repay, Tracsis is well positioned to benefit from the commitment to greater innovation and investment in a digital railway. This is currently reflected in the pipeline of new opportunities.

Yew Grove REIT EUR0.98 EUR105.5m (YEW.L)

The diversified portfolio of Irish commercial property assets, has exchanged contracts for the purchase of an industrial building in Dundalk and two adjoining office properties in Citywest Dublin. In Dundalk, the Company has exchanged contracts on Tanola House on Coes Road, Dundalk, a recently constructed high bay industrial building of 86,451 sq. ft. over two adjoining blocks. The property has a 12.5m eaves height, 120 car parking spaces and is tenanted by a US multinational under two leases which together have a weighted average unexpired lease term (“WAULT”) to first break of approximately 8.4 years and a WAULT to expiry of 18.4 years. Tanola House was acquired for c. EUR8m, with a current annual rent of EUR601,000 stepping up in approximately four years across both leases to EUR631,000, representing a net initial yield of 6.9% and increasing to 7.3% at the step up. The Company has also exchanged contracts to purchase Blocks E&F, Citywest Dublin, for EUR11m. The property has two adjoining office blocks of 45,972 sq. ft. with 165 car parking spaces and is fully tenanted by three multinational tenants paying a current annual rent of EUR984,000. This represents a net initial yield of 8.2% with a potential reversionary yield of 9.2%. The property has a WAULT of 4.0 years to first break and 6.4 years to expiry.

What’s cooking in the IPO kitchen?

The Artisanal Spirits Company to join AIM. It is the holding company of the Group, whose principal operating subsidiary, The Scotch Malt Whisky Society Limited (“SMWS”)  trades under the Group’s flagship brand The Scotch Malt Whisky Society. SMWS is the leading curator and provider of premium single cask Scotch malt whisky and other spirits for sale primarily online to a discerning global membership. SMWS has a presence in over 30 international markets. Offer TBA. Due 4 June

Arecor Therapeutics announces intention to Float on AIM.  The revenue generating biopharmaceutical company that is targeting improving patient care by bringing innovative medicines to market through the enhancement of existing therapeutic products using its innovative proprietary formulation technology platform, Arestat™. Admission is expected to occur in early June 2021.  Deal details TBC. 

Marex Spectron Group expected intention to float on the London Stock Exchange. Marex have a broad service offering, primarily across energy, commodity and financial markets through its Market Making, Commercial Hedging, Price Discovery and Data & Advisory businesses, and has strong positions across its core energy and commodities markets, executing around 35m trades and clearing over 175m contracts in 2020.  Headquartered in London, the Group was formed in 2011 and currently has 19 offices worldwide with around 1,000 employees and more than 12,000 clients across Europe, Asia and America.  In the year ended 31 December 2020, the Group’s net revenue increased by 17.7% from $352.2m to $414.7m, and adjusted operating profit before tax increased by 15.2% from $53.4m to $61.5m. Should Marex proceed with an IPO, the current expectation is that the shares would be admitted to the Premium Listing Segment of the LSE and the offer would comprise of an offer of existing shares to be sold by certain existing shareholders of the Company.

Trellus Health which is commercialising a scientifically validated, resilience-based, connected health solution for chronic condition management to float on AIM. Expected to raise gross proceeds of approximately £25m. Due 28 May.   

Elcogen Group has announced its intention to IPO on AIM.  They are a manufacturer of ceramic anode-supported, low temperature solid oxide cell technology. Elcogen has two core product lines, ElcoCell and ElcoStack. Both product lines are used by customers to integrate into their own end products or systems either for distributed power generation (fuel cells), green hydrogen production (electrolysers) or syngas production (co-electrolysis).  The Group operates in Estonia and Finland with headquarters in Tallinn, Estonia. Company financials and deal details TBC. Expected admission date early June 2021. 

Pioneer Media Holdings Inc to join the Access Segment  AQSE Growth Market. The Company is an investment company focused on the eSports and mobile gaming industries, and all business sectors related thereto. No funds being raised. Due 25 May.

Pharma C Investments to list as a SPAC on the Access Segment of the AQSE Growth Market. It is specifically seeking to take advantage of the dynamic regulatory environment surrounding legal Medicinal Cannabis. Raising £1m Due 26 May.

Clarify Pharma, an investment vehicle specialising in biotech and life sciences companies seeking to prove the safety and efficacy of psychedelic-based substances, announced its intention to apply for admission of its Ordinary Shares to trading on the Access Segment of the AQSE Growth Market. The flotation is expected to value Clarify Pharma at approximately £10.5m. The Company plans to raise approximately £5m. 

Aquila Energy Efficiency Trust to admit its shares on the Main Market (Premium). Seeking raise of up to £150m. The Company will seek to generate attractive returns for Shareholders, principally in the form of income distributions by investing in a diversified portfolio of Energy Efficiency Investments. Due 2 June.

Taylor Maritime Investments to join the Main Market (Premium). The Company is an internally managed investment company with an Executive Team led by Edward Buttery. The Executive Team has to date worked closely together for the Commercial Manager, Taylor Maritime. Established in 2014 by Edward Buttery, Taylor Maritime is a privately owned ship-owning and management business with a seasoned team that includes the founders of dry bulk shipping company Pacific Basin Shipping (listed in Hong Kong 2343.HK) and gas shipping company BW Epic Kosan (formerly Epic Shipping) (listed in Oslo BWEK:NO). Taylor Maritime’s team of experienced industry professionals is based in Hong Kong and London. Taylor Maritime’s principals have been some of the most active buyers of Handysize and Supramax dry bulk ships having made over US$1.3b of asset purchases and sales since 1987. Seeking a $250m raise. Due 27 May 2021.

Kitwave Group, the independent, delivered wholesale business to join AIM. The Placing of the Placing Shares will raise gross proceeds of £64.0m for the Company and the Placing of the Secondary Placing Shares will raise gross proceeds of £17.6m for the Selling Shareholders. Mkt cap £105m. The management team, led by Paul Young, has overseen significant growth in both revenue and operating profit with revenue and Adjusted EBITDA growing to £592.0m and £27.6m respectively in FP20 (an 18-month period). In the 12 months to 30 April 2020, the Group’s revenue and Adjusted EBITDA was £399.0m and £17.5m respectively. Due 24 May.

Belluscura to join AIM.  The designer and manufacturer of FDA cleared, lightweight and portable oxygen concentrators to raise £15m, with an expected pre-money market capitalisation of £35-40m. Due late May.

Dianomi, the provider of native digital advertising services to premium clients in the Financial Services and Business sectors, announces its intention to seek admission of its shares to trading on AIM. Admission is expected to take place during May 2021. Offer details TBA. In FY 2020, revenue was £28.43m, representing growth of 58.8% compared to FY19. The majority of the Group’s revenue is generated in the Americas (FY20: 76.6 %) followed by EMEA (FY20: 17.0%.), and APAC (FY20: 6.4%.) Earnings before interest and taxation was £2.02m in FY20 having grown from £0.25m in FY19. 

Voyager Life, the health and wellness company established to supply high-quality Cannabidiol (CBD) and hemp seed oil products, announces the Company’s intention to seek admission to trading on the Access Segment AQSE Growth Market. Admission is expected to occur before the end of June 2021. Voyager was incorporated in November 2020 as a health and wellness business focused on CBD and hemp seed oil products. The Company’s directors believe that a significant opportunity exists in the CBD market due to the forecast growth and ongoing regulatory changes.

Thor Explorations (TSXV:THX) seeking a secondary listing on AIM. The Company is targeting Admission during Q2 21. Segun Lawson, President & CEO, stated: “Thor Explorations has advanced significantly, in both project development and capitalisation since the acquisition of Segilola in 2016. This year, the Company is well positioned to achieve two major milestones with the commencement of gold production at Segilola in Nigeria and a maiden resource at Douta in Senegal, as well as continuing to progress our highly prospective Nigerian exploration portfolio on the Ilesha Schist belt.”

Imperial X (AQSE:IMPP) to join the Main Market (Standard). It is also proposed that on Admission to the Official List, the Company will change its name to Cloudbreak Discovery Plc.  With effect from Admission, Imperial X will hold equity positions and royalties in a variety of projects in the natural resources sector across multiple jurisdictions, primarily in the Americas and Africa. The Company is proposing to raise up to £1.5m by way of placing of new Ordinary Shares to support further prospect acquisitions. Due 3 June.

*A corporate client of Hybridan LLP

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