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

Taylor Maritime Investments (TMIP.L)  has joined 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. Raised US$253.7m.

Off the menu

No Leavers Today.

Banquet Buffet

Adams 8.5p £7.75m (ADA.L)

Further to the announcement made on 26 May 2021 by Motif Bio referred to below, Adams has committed to subscribe for 2,500,000 new Ordinary Shares of 2.2p each in Motif Bio at a price of 20 pence per share for a total cash consideration of £500k under a conditional placing agreement. The announcement released by Motif Bio on 26 May 2021 discloses that it has entered into a conditional contract for the acquisition of the entire issued share capital of BiVictriX Therapeutics Limited (“BiVictriX”) for an aggregate consideration of £5,500,608 to be satisfied by the issue of New Ordinary Shares in Motif Bio and cash, and that it has also conditionally raised gross proceeds of £10.1m by way of a Placing and Subscription issue of 50,500,000 New Ordinary Shares to new and existing shareholders. The acquisition of BiVictriX constitutes a “reverse takeover” under Rule 14 of the AIM Rules for Companies,  and accordingly is subject to the approval of Motif Bio shareholders, which is being sought at a General Meeting convened for 14 June 2021.

Alpha FX Group 62p £16.2m (AFX.L)

The provider of FX risk management and alternative banking solutions to corporates and institutions internationally, today announces a trading update for the year ending 31 December 2021. Trading in the five months to date has been very positive across all aspects of the business. The Institutional and Alpha Platform Solutions divisions in the UK, along with the overseas offices in Canada and Amsterdam have all delivered excellent year-on-year growth. The more established Corporate division has also demonstrated strong growth, as well as being the talent incubator for future leaders to launch Alpha into new markets. As a result of the performance to date, the Board is optimistic that, providing the situation under COVID-19 does not deteriorate, the Group is on track to exceed current expectations for the full year.

Appreciate Group 38.55p £71.8m (APP.L)

The UK’s leading multi-retailer redemption product provider, has entered a new partnership with PayPoint plc that will see its gifting products offered to consumers via PayPoint’s network of 28,000 retailer partner stores across the United Kingdom. Consumers will now be able to purchase Love2Shop e-gift cards at PayPoint outlets. These cards can then be exchanged so that customers can shop with some of the nation’s favourite high street and online brands, including Argos, Halfords, Marks & Spencer, ASOS, Costa and Uber Eats. Appreciate is also working with PayPoint to supply its retailers with marketing support for its retailer partner stores so that awareness of the product in-store can be maximised.

Aquis Exchange 700p £190.2m (AQX.L)

Equities listing division Aquis Stock Exchange (AQSE) has entered into arrangements with Fregnan Ltd and Research Tree Ltd to produce and publish research on AQSE’s top-tier Apex stocks. AQSE recognises that research is a very important component of the decision-making process around the purchase and sale of stocks. In recent years, research has been declining, particularly in small and mid-cap stocks. At the time of its acquisition of AQSE, Aquis stated that one of its aims for the new business was to address this lack of research. Today’s announcement is a great step forward in the fulfilment of that undertaking, as every Apex stock will now have quantitative research, provided by Fregnan, available for free through the AQSE website. In addition, any existing fundamental research on Apex stocks will also be available through the new, dedicated, Research Tree portal. Fregnan produces high quality, unbiased financial analysis and models through automation at scale. It uses advance machine learning and artificial intelligence to bring unique insights that traditional techniques do not uncover. Research Tree is an independent company, which provides investors with up-to-date and historical professional equity research and stock reports from a variety of brokers and research houses.

Ascent Resources 5.15p £5.6m (AST.L)

Further to the Company’s announcement on 19 March 2021, the Company is advancing towards initiating international arbitration proceedings against the Republic of Slovenia under the Energy Charter Treaty and UK-Slovenia Bilateral Investment Treaty. Accordingly, the Company has signed non-binding heads of terms with Enyo Law LLP, a specialist arbitration and litigation legal firm (the “Firm”) pursuant to which the Company intends to instruct the Firm to pursue the Company’s claims on a fully contingent basis through a damages-based agreement. Upon completion of definitive documentation, the Firm will only be paid out of the proceeds of the arbitration in the event of a successful damages award or execution of a binding settlement agreement if achieved sooner. This non-equity dilutive, non-recourse and full funding proposal is the preferred solution from the Company’s perspective, notwithstanding that the Company has other alternative offers also under discussion.

Boku 170p £500m (BOKU.L)

The global provider of mobile payment and identity solutions, announced that its subsidiary Fortumo is today launching carrier billing payments with EasyPark, the parking technology company, for parking in Switzerland. Over 8m people can now easily pay for their parking via the EasyPark parking-app, all over Switzerland, by charging the fee to their phone bill. The payment method is supported for all subscribers of local mobile operators Swisscom, Sunrise and Salt.

Deltex Medical Group 1.6p £9.23m (DEMG.L)

The specialist in oesophageal Doppler monitoring, today publishes an AGM statement and announces the appointment of a new Finance Director. At today’s Annual General Meeting, the Group’s Chairman, Nigel Keen, will make the following statement : “There are encouraging signs that around the world the volume of elective surgical procedures, which represent our core market, is climbing. The Group’s activity levels in the UK and the USA continue to face headwinds as we are still limited to the extent that we can get our clinical educators into hospitals. Our International business is showing signs of increased activity levels as some of our distributors are beginning to increase the volume of orders significantly as compared to the prior year.” As previously outlined in the announcement of the 2020 results on 22 April 2021, David Moorhouse is retiring as Group Finance Director and from the Board at the end of the AGM today. Natalie Wettler, currently Group Financial Controller, is being promoted to Group Finance Director with effect from the end of the AGM. Natalie held a number of senior roles in the Group’s finance department between 2011 and 2016, and we were delighted when she agreed to re-join the Group in January 2020 as Group Financial Controller.

Ethernity Networks 46p £26.6m (ENET.L)

The supplier of data processing offload solutions on programmable FPGA (field programmable gate array) hardware for accelerating telco/cloud networks, announces that further to its RNS of 6 April 2021, it has now received a total of $2m in customer orders from Tarana Wireless  to supply the Company’s ENET FPGA SoC (system-on-a-chip). Theorders include $740k for delivery in 2021, which represents an increase of c. 50% over the previous expectations of the customer. The remaining $1.26m in orders are for 2022, based on Tarana’s current 2022 sales commitments, and this amount could increase as demand for Tarana’s G1 fixed wireless product continues to grow. Additional orders are expected for 2023. Furthermore, Ethernity has successfully addressed the challenge of the worldwide component shortage referred to in the Company’s update of 4 May 2021, and has secured adequate supplies from Xilinx of the required components for the remainder of the year.

Kibo Energy* 0.255p £6.14m (KIBO.L)

The multi-asset, Africa-focused, energy company, has today issued 65,276,346 new Kibo Shares of EUR0.001 each at a deemed issue price of £0.0026 per share to Sanderson Capital Partners Limited in settlement of £169,718.50 of the total outstanding amount of £339,437 pursuant to the Forward Payment Facility signed between Sanderson and the Company in December 2016. This settlement represents 50% of the outstanding amount on the Facility. The remaining amount of £169,718.50 is being settled in cash, in full and final settlement of all outstanding amounts on the Facility. The Settlement Share Price is the closing price of the Company shares on AIM on 26 May 2021. The Company also notes that in 2021 to date, warrant holders have exercised 188,431,556 Kibo warrants at prices of £0.002 to £0.004 for total proceeds of £697,726 received by the Company. The Company currently has 750,861,140 warrants in issue ranging in price from £0.002 to £0.006.

The Ince Group 71p £48.7m (INCE.L)

International legal and professional services firm, Ince, today announced the continued growth and development of its maritime division with the imminent addition of a specialist and highly experienced shipping team to its Bristol office. Daniel Crockford and Alex Penberthy will join Ince as Partners, adding their extensive shipping dispute resolution, yacht, superyacht and personal injury expertise. The team will work closely with Ince’s long established London and International maritime teams in order to complement its premier global maritime offering.

What’s cooking in the IPO kitchen?

African Pioneer, a company engaged in development of the natural resources exploration projects in Sub-Saharan Africa to join the Main Market (Standard). Raising £1.75m Due 1 June

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.

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.

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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