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.

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ADM Energy* 3.4p £5.5m (ADME.L)

The natural resources investing company, has commissioned Xodus Group Ltd, a leading global energy consultancy, to produce an updated Competent Person’s Report  on the Barracuda Field. The new CPR is the next step in the agreed scope of work under the Risk Sharing Agreement  for the development of the Barracuda Field, in which the Company holds an indirect interest. The independent report will provide a full technical and economic review of the Barracuda Field, assessing the latest data to define the asset’s geological profile and estimated gross in-place and recoverable oil and gas volumes from oil and gas accumulations located in NW OML 141 Licence Area, onshore Nigeria. Xodus will use the Society of Petroleum Engineers (SPE) Petroleum Resource Management System (“PRMS”), updated in 2018, for classification of the oil and gas volumes. This provides more clarity on classification of resources than the PRMS of 2007. The Barracuda Field is an existing discovery located in swamp/shallow waters, Bayelsa State, Nigeria. Four wells have been drilled in the Barracuda Field on OML 141; three in 1967 and the most recent, Barracuda-4, being drilled in 2007. A CPR prepared for Nobel Hill Network Limited by Ryder Scott in 2016, prior to the Company’s involvement, produced positive results from logs and sidewall cores with hydrocarbon shows supporting an oil discovery at areas identified as D-1B and C3 levels. The report indicated P50 estimated prospective gross in place oil volumes of 1.3b barrels from two sand reservoir intervals.  Ryder Scott used the 2007 SPE PRMS for classification of volumes. It is expected that the CPR will take four to six weeks. The Company will report the results to the market once completed.

Bango 217p £164m (BGO.L)

The global platform for data-driven commerce, is powering the first three Telcos to offer bundled Xbox cloud gaming subscriptions in Europe. These launches are a result of the expanded partnership between Bango and Microsoft, announced in November 2020, to open-up consumer access to Xbox subscriptions sales through Telco partners.

Good Energy 280p £46.6m (GOOD.L)

The 100% renewable electricity supplier and innovative energy services provider, announces a partial repayment of 70% (£11.5m) of Good Energy Bonds II on 30 June 2021, as a result of a strong net cash position and increased capital flexibility from recent transactions. In April 2021, Good Energy announced the successful restructuring of the financing of its renewable generation asset portfolio to consolidate and simplify funding facilities. The transaction also provides on-going improved visibility of cash flows, with a rebalancing of the performance covenants over the entire generation portfolio. This frees up future cash generated by the generation portfolio. Alongside the strong net cash position from improved operational performance, this has provided the Company with increased capital flexibility.

Online Blockchain 46p £6.6m (OBC.L)

The blockchain research and development company announces the opening of a new office in Gibraltar. The new location is a strategic choice as the company develops its blockchain operations apace, in particular DeFi Protocol Umbria Network for which it acts as co-ordinator, adviser and administrator. Gibraltar offers a progressive regulatory environment and has gained a reputation as one of the world’s leading administrations for welcoming and fostering innovation and fintech businesses. This makes it especially attractive for companies operating within the blockchain and cryptocurrency sector. Gibraltar provides its offshore corporations numerous benefits such as access to EU membership, tax-free income, a low annual renewal fee and freedom to conduct business globally.

Portmeiron Group 680p £95m (PMP.L)

The designer, manufacturer and worldwide distributor of high quality homewares under the Portmeirion, Spode, Royal Worcester, Pimpernel, Wax Lyrical and  Nambé brands,  announced the following trading update ahead of its Annual General Meeting. “We are delighted to report that we have had an excellent start to the year. Our sales for the first four months of the year (to 30 April 2021) have increased by more than 50% on the same period in 2020. On a like-for-like basis, our sales for this period are slightly ahead of pre-Covid levels achieved in the same period in 2019.”

Rural Broadband Solutions* 3.95p £12m (RBBS.L)

It is the Company’s intention to appoint Chris Stone as a Non-Executive Director of the Company over the next few days. Chris Stone has spent the last 25 years primarily in the Software and IT Services industries. He has held various non-executive director and chief executive roles of listed and private equity-backed technology companies. Most recently, Chris will be known by the market in his role as Chairman of AIM-listed Cityfibre Plc from January 2017 until June 2018, when it was sold to private equity buyers. He is currently Chairman of FTSE 250 cybersecurity company NCC Group Plc, Chairman of AIM-listed Idox Plc, a provider of software to the Public Sector, and also Chairman of Everynet BV, a privately owned Internet of Things infrastructure business.

Sareum Holdings* 2.5p £81.8m (SAR.L)

The specialist drug development company delivering targeted small molecule therapeutics to improve the treatment of cancer and autoimmune diseases, provided a trading update. Covid-19 continues to impact the Contract Research Organisations with which Sareum is working to complete the preclinical development of SDC-1801 for autoimmune disease. While initially the impact on development timelines was minimal, it has increased and is causing further delays to the conduct of the final preclinical studies the Company needs to complete on SDC-1801 prior to filing an exploratory Clinical Trial Application (CTA). As a result of these delays, the Company now expects these final toxicity and safety studies to complete in Q3 2021 and a CTA for SDC-1801 to be filed in Q4, subject to no further delays. The UKRI-funded Covid-19 research project for SDC-1801 is expected to complete on schedule with the experimental phases finishing in June and the data analysis to complete shortly thereafter. The Company will provide a further update once the relevant data are available. If the completed studies are successful, the Company plans to explore the possibility for further UK government funding from the recently launched AGILE clinical development platform. On SDC-1802 the Company continues to work on the design of the translational studies needed to define the optimal cancer application prior to completing toxicology and manufacturing studies.

Semper Fortis Esports* 2.7p £11.2m (AQSE:SEMP)

The esports company focused on establishing esports teams, forming brand and technology partnerships, and providing business to business advisory services, announced that Mr Harry Maguire has been appointed as a brand ambassador to the Company, following the very recent appointment of Mr Dominic Calvert-Lewin as a brand ambassador. Remuneration to Mr Maguire will be paid in the form of warrants which entitle him to subscribe for ordinary shares in the Company at an IPO exercise price of 1 pence per share. The five year warrants cannot be exercised in the first twelve month period post their issue. As part of Semper Fortis Esports, brand ambassadors will interact with online audiences via digital platforms and bring their wealth of experience in traditional sports to an organisation in esports.

Tremor International 758p £1027m (TRMR.L)

The global company offering an end to end software advertising platform, announced its results for the three months ended 31 March 2021. A record performance in Q1 2021, which is historically a quieter period for the Company. Net revenue increased 96% to $63.0m (Q1 2020: $32.1m). Programmatic net revenue increased 105% to $55.7m (Q1 2020: $27.2m), underpinned by revenue growth in Connected TV (“CTV”), the self-serve platform and private marketplaces. Adjusted EBITDA increased 4,935% to $27.5m (Q1 2020: $0.5m). Total cash and cash equivalents as at 30 April 2021 of $130m with no debt, after conducting a buy back of $6.6m during Q1 2021. All acquisitions are now fully integrated with Tremor delivering record levels of organic revenue growth.

Webis Holdings 4.45p £17.5m (WEB.L)

The group specialising in pool wagering and the operators of WatchandWager and Cal Expo, the Californian harness track,  announced that its Advanced Deposit Wagering (ADW) business, WatchandWager.com LLC received a one-year ADW license approval from the West Virginia Racing Commission (WVRC) on 18 May 2021. The license will be renewable annually. The ADW license from the WVRC allows WatchandWager to accept wagers from the state’s nearly 1.8m residents. West Virginia is the home of Charlestown Races and Mountaineer Racetrack for Thoroughbreds, as well as Tri-State Mardi Gras and Wheeling Island greyhound tracks. The ADW license from the WVRC adds to WatchandWager’s licenses from California, Colorado, Kentucky, Minnesota, New York, North Dakota, and Washington. Combined with WatchandWager’s multi-jurisdictional ADW license from the North Dakota Racing Commission, the company can accept wagers from 25 states where online pari-mutuel wagering is legal.

What’s cooking in the IPO kitchen?

UK SPAC (formerly Mountfield Group and now an AIM Rule 15 Shell) has applied for admission to the AQSE Growth Market. The Company recently raised £3.1m in a placing, giving the Company flexibility in pursuing a reverse take-over transaction. The Directors of the Company are currently in the process of identifying and assessing reverse takeover opportunities with a particular focus on the European medicinal cannabis sector. The Directors are working closely with specialists in this industry in order to evaluate opportunities. Due 3 June

TECC Capital plc is a SPAC applying to be listed on the Access Segment of the AQSE Growth Market with the intention to identify and acquire a suitable business opportunity or opportunities and undertake an acquisition or merger or a series of acquisitions or mergers. The focus will be investing in businesses which are developing and/or supporting the application of technology in innovative sectors such as: artificial intelligence and machine learning; telematics; life sciences (including medicinal cannabis and cannabidiol (CBD) wellness); cyber security; and eCommerce (including big data and the internet of things (IOT). Due 3 June

MADE, a digitally native lifestyle brand in home has announced its intention to IPO onto the Premium Listing Segment of the LSE. MADE’s mission is to make high-end designer furniture and homeware products accessible to everyone.  Their gross sales, net revenue and Adjusted EBITDA were £109.5m, £82.4m and £1.8m, respectively, for the three months ended 31 March 2021 and £315m, £247m and (£5.1m), respectively, for the year ended 31 December 2020.  The Offer would comprise a primary offer to raise proceeds to further develop growth in existing markets, improve service through reduction of lead-times offered to customers, scale its homeware range and give the Group increased working capital flexibility. MADE would seek to raise approximately £100m of primary proceeds. 

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 29 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 £35-40m. Due 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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