Hybridan Small Cap Feast

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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

Dianomi (DNM.L), the provider of native digital advertising services to premium clients in the Financial Services and Business sectors, has joined AIM with an issue price 273p. Primary capital to be raised on admission £5m, Secondary Placing £32m and an anticipated Market Cap £82m. 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. 

Kitwave Group, the independent, delivered wholesale business has joined 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. Market 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.

Off the menu

No Leavers Today.

Banquet Buffet

4d Pharma 98.7p £178m (DDDD.L)

The pharmaceutical company leading the development of Live Biotherapeutic products (LBPs), a novel class of drug derived from the microbiome, today announces additional positive data from its completed Phase II trial of LBP Blautix® in subjects with irritable bowel syndrome with constipation (IBS-C) or with diarrhea (IBS-D). Further analysis of the data has revealed strong and statistically significant activity on the key symptom of bowel habit, a potential approvable primary endpoint per regulatory guidelines. In addition, analysis of the data by geographical region shows that earlier top line results were impacted by an unusually high placebo response in patients in the UK and Ireland, and enhanced positive signals were seen in the larger US population.

Cora Gold 8p  £16.4m (CORA.L)

Third set of drill results from its largest ever drilling campaign, which commenced in March 2021, at its Sanankoro Gold Project southern Mali. The Company plans to drill up to 35,000m by the end of July 2021, with a dual focus on targeting resource growth as well as infill drilling to convert existing Inferred resources to Measured and Indicated resources. Intersects include: 19m @ 4.0 g/t Au from 13m including 7m @ 8.86 g/t Au in hole SC0333, 17m @ 2.82 g/t Au from 47m including 1m @ 27.77 g/t Au in hole SC0342, 132 holes drilled totalling over 13,000m from start of the campaign to 19 May 2021. Targeting completion of up to 35,000m drilling by end July 2021.

Deltic Energy 1.675p £23.6m (DELT.L)

Shell U.K. Limited its Joint Venture Partner and Operator of Licence P2252, has appointed Fugro GB North Marine Limited to carry out geophysical and geotechnical site survey works over the Pensacola Prospect in preparation for the drilling of the Pensacola exploration well. The site survey is expected to commence at the end of July 2021 and be completed in Q3 2021. Graham Swindells, Chief Executive of Deltic Energy, commented: “The commissioning of the site survey is a key part of the well planning process and represents an important milestone as the Joint Venture continues the preparatory works required in advance of the drilling of the high impact exploration well on the Pensacola prospect. We look forward to continuing to progress through the planning phase towards drilling in May 2022.”

Fulcrum Utility Services 36.25p £80.5m (FCRM.L)

Fulcrum Utility Services Limited, a leading independent multi-utility infrastructure and services provider focused on delivering infrastructure for the UK’s net-zero future, has been awarded a new five-year smart meter exchange and management contract, worth an anticipated £20m, with energy supplier, E (Gas and Electricity) Limited (E). This new agreement is a tripartite agreement between the Group’s smart metering business, Fulcrum Metering Services Limited, E and its Meter Asset Provider (MAP), Vantage Meters (Operations) Limited (Vantage Meters) and is expected to deliver total revenues of £20m over the five-year period.

Immedia SUSPENDED (IME.L)

The supplier of multi-media content and digital solutions for leading brands and global businesses, announced an update on its proposed acquisition of Sprift Technologies Ltd. The Company, and its advisers, are continuing to make progress with their due diligence enquiries into Sprift. The Directors also note the recent announcement, made by OnTheMarket plc (AIM: OTMP, a leading UK residential property portal provider) on 13 May 2021, that it had entered into a commercial partnership arrangement with Sprift. As the Company announced on 26 March 2021, should the acquisition of Sprift proceed on the currently envisaged terms, it would be classified as a reverse takeover in accordance with the AIM Rules for Companies. Accordingly, the Company’s shares will remain suspended from trading on AIM until either the publication of an admission document setting out, inter alia, details of the proposed RTO or until confirmation is given that these discussions have ceased. The proposed RTO remains subject to contract and satisfactory completion of the necessary due diligence and, at this stage, there is no guarantee that the proposed RTO will complete. Immedia also agreed to provide Sprift with a secured loan facility of £900k for working capital purposes in three equal tranches; the third tranche of £300k was due to be paid to Sprift on 21 May 2021.  As this money is not yet required, the Company has agreed to defer the payment of this tranche until Sprift request it; all other terms of the Loan Agreement remain unchanged.

K3 Capital 345p £237.5m (K3C.L)

The multi-disciplinary professional services firm providing advisory services to SMEs, has signed its maiden debt facility as a plc. The Group has secured total available debt facilities of £15m through a new committed revolving credit facility of £10m with an approved but uncommitted accordion facility of up to £5m. The facilities, provided by HSBC Bank plc, are committed for a 3-year initial term and are provided on competitive terms. Alongside the Company’s existing cash reserves and strong ongoing cash generation, the facilities will be used to support the Company’s growth ambitions and its declared intention to acquire complementary professional services businesses.

Marlowe 777p £599.3m (MRL.L)

xford 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.

OnTheMarket 84p £61.1m (OTMP.L)

The majority agent-owned company which operates the OnTheMarket.com property portal, announces today that it has signed a 12 month exclusive commercial partnership with Insurestreet Limited, trading as Canopy, the award-winning tenant referencing platform. The partnership will enable OnTheMarket to provide its agent customers with free comprehensive tenant referencing, including employment and landlord references, for all tenancy applications. Canopy’s RentPassport includes Experian credit history, adverse financial history and provides verification of identity and address along with Know Your Customer, Anti Money Laundering and other information. The Canopy and OnTheMarket rental platform will be live in July 2021. This partnership follows OnTheMarket’s recently announced commercial partnership with Sprift Technologies Limited to provide agent customers with free Market Appraisal Guides.

Velocity Composites 22p £8m (VEL.L)

The supplier of advanced composite material kits to the aerospace sector updated for the six months to 30 April 2021. The Board reported at the time of the FY20 full year results in January that having reduced the Company’s operating cost-base following the adverse impact of the Covid 19 pandemic, Velocity is well placed to capitalise upon anticipated improving market conditions. In addition the new partner proposition from the Company has been well received by both existing and prospective new customers. Since the start of the year the Company has made significant progress, with the announcements of three key contract extensions during H1 with three of the Company’s largest customers, which represent in total an estimated annual value of over £8.1m at current impacted build rates. Although demand in the first six months has continued at the levels seen in H2 FY20, sales have stabilised and Management expect H1 FY21 sales of £4.4m (H1 FY20: £9.5m), leading to an adjusted EBITDA loss for H1 FY21 of £0.5m (H1 FY20: Loss £0.3m). With the organisational restructuring process completed, the Company’s cost-base is now in line with a target £13.5m sales breakeven position and with further cost reduction activities Velocity is well placed to return to a positive adjusted EBITDA in H2 FY21 and FY22, albeit in challenging market conditions.

Westmount Energy 11.75p £16.9m (WTE.L)

Westmount notes the announcement by Ratio Petroleum Energy Limited Partnership yesterday, that Hess Corporation has increased its working interest (WI) in the Kaieteur Block, offshore Guyana, from 15% to 20%. This increase in Hess Corporation’s Kaieteur Block WI has occurred on the back of the Tanager-1 oil discovery, announced in November 2020, and via the farm-down of a 5% WI by Cataleya Energy Limited (CEL) to Hess. Tanager-1, the first well drilled on the Kaieteur block, encountered 16 metres of net oil pay (20oAPI oil) in high-quality sandstone reservoirs of Maastrichtian age and confirmed the extension of the Cretaceous petroleum system and the Liza play fairway outboard from the prolific discoveries on the neighbouring ExxonMobil operated Stabroek Block. The well  was reported as an oil discovery which is currently considered to be non-commercial as a standalone development. High quality reservoirs were also encountered in Tanager-1 at the deeper Santonian and Turonian intervals though interpretation of the reservoir fluids was reported to be equivocal and require further analysis.

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.

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 £35-40mDue late May.

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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