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.

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Banquet Buffet

Anpario 690p  £154m (ANP.L)

AGM statement from the independent manufacturer of natural sustainable animal feed additives for health, nutrition and biosecurity. The Company has delivered good sales and improved profit performance with sales at a similar level to last year, which was a very strong comparative period as customers had increased stock levels at the onset of the pandemic. Most regions are performing to plan with China experiencing a very strong performance, benefiting from last year’s ban on anti-biotic growth promoters (AGPs) in animal feed. South East Asia’s performance is, however, weaker as countries imposed new lockdowns in response to increasing infection rates and, with less tourism which has reduced overall protein consumption. The Company’s Brexit contingency plans are working well, helping to reduce disruption and now look forward to efforts coming to fruition supported by their European stockholding hub. As with most industries, they are experiencing raw material price inflation and some disruption in the supply chains and global shipping operations. However, they are implementing price increases to help mitigate the increase in costs and their export and logistics team is managing to overcome the logistics issues. They expect these challenges to continue until the last quarter of this year. It is worth noting that Anpario’s unique formulation technology also benefits customers as it is able to offer solutions which are more cost effective than alternative competitor products. The Company are encouraged by recent business development successes including a large Brazilian poultry integrator using Orego-Stim® and growth in Latin America for their aquaculture products, which are currently being launched in specific countries across Asia. “Our exciting growth opportunities and strong balance sheet, which is reflected in our strong cash position, gives me confidence that the Company will continue to develop and grow in the years ahead.”

DeepMatter 1.85p  £16.8m (DMTR.L)

The company focusing on digitising chemistry, has been selected as a partner for the University of Leeds following a £1.4m EPSRC investment they received to develop automated precision manufacturing approaches in collaboration with the University of Sheffield, AstraZeneca, Somaserve and Samsung. DeepMatter will provide its DigitalGlassware® platform, a cloud-based platform that allow chemists to share data in real-time and develop digitally enabled scale-up of advanced nanoparticle products. Nanoparticles are an important component in ensuring safe and effective drug delivery of new-generation (mRNA) vaccines and certain anti-cancer drugs. The technology to digitally enable the scale-up of advanced nanoparticle products will be a sustainable, cost-effective alternative to the current method of production, and brings innovation beyond a laboratory setting across several manufacturing environments.

Fulcrum Utility Services 33.5p  £74.4m (FCRM.L)

The independent multi-utility infrastructure and services provider focused on delivering infrastructure for the UK’s net-zero future, has been awarded a new £5.5m multi-utility infrastructure contract that will support the decarbonisation of the UK agriculture sector, by powering a new 22-hectare renewably heated vegetable growing facility. Working with a low carbon energy projects specialist, AGR Renewables (AGR), the Group has been awarded this contract to deliver electricity, gas and water infrastructure for Greencoat Capital’s latest large-scale greenhouse near Ely, Cambridgeshire, which will be one of the largest built greenhouses in the UK and will have the capacity to grow 10 per cent. of the cucumbers consumed in Britain. 

Hurricane Energy  1.24p  £24.7m (HUR.L)

The UK based oil and gas company announced the approval of the Lancaster Field Development Plan Addendum (the FDPA) by the UK’s Oil and Gas Authority (the OGA). The FDPA approval, together with associated production, flare, and vent consents, enables production with the flowing bottom hole pressure up to 300 psi below the bubble point pressure of the fluid (1,605 psia at 1,240 metres TVDSS), subject to the Company ensuring that no incremental liberated gas is produced to surface. The initial consent is for a three-month period from 16 June 2021 to 15 September 2021. Production, flare, and vent consents will be issued on a three-monthly basis. The Company will regularly provide the OGA with data to demonstrate conformance with the consent conditions. In line with the FDPA, the Company will ensure that no incremental liberated gas is produced to surface and commits to choking back or shutting in any well which may produce incremental gas liberated due to below bubble point production. The approval of the Lancaster FDPA satisfies a key condition of the Company’s proposed financial restructuring, as originally announced on 30 April 2021.

I3 Energy  9.85p  £65.4m (I3E.L)

2020 year-end reserves for its subsidiary i3 Energy Canada Ltd. The Before-tax Net Present Value of cash flows attributable to the reserves, discounted at 10%, is USD 97mm for the Proved Reserves (1P) and USD 183mm for the Proved plus Probable Reserves (2P), indicative of the numerous economic development opportunities in the Company’s portfolio. Proved Producing Reserves are 17.51m barrels of oil equivalent (mmboe), representing 55% of all 1P Reserves and Proved plus Probable Producing Reserves are 22.83 mmboe representing 43% of all 2P Reserves, indicative of relatively low risk reserves. Top-tier, low-decline asset base as exhibited by projected first year declines of 13% on a 2P basis. Actual observed declines since i3’s acquisition of these assets are significantly below this projection. The Company’s Proved plus Probable Reserves are comprised of 62% natural gas and 38% oil and natural gas liquids.

Image Scan  3.85p  £5.25m (IGE.L)

The  specialist in the field of X-ray imaging for the security and industrial inspection markets, announces the award of a contract to supply portable X-ray scanning systems to Australia. The four systems to be supplied are the ThreatScan®-LSC, a combination package including a large format ThreatScan®-LS1 panel, a compact ThreatScan®-LS3 panel with back-pack, a tablet PC imaging station and the I-Gen generator. This combination system provides great deployment flexibility for different threat scenarios. The award is for an Australian Government customer and follows the appointment of a new marketing partner in Australia in 2020.

 Kingswood Holdings 24.5p  £53.15m (KWG.L)

The international, fully integrated wealth and investment management group, has agreed to acquire, subject to regulatory approval,   Admiral Wealth Management Limited (Admiral) a high quality, established Chartered Financial Planning firm based in North Lincolnshire. Admiral provides independent financial advice to individuals and corporates primarily in Lincolnshire and Yorkshire. It currently employs 7 people, including 2 advisers managing c.£100m AuA on behalf of c.600 active clients. Following regulatory approval, the business will be acquired for a cash consideration of £4.0m, payable over a 2-year period. 2.0m will be paid at closing and the balance paid on a deferred basis some of which is subject to the achievement of pre-agreed performance targets.

Metal Tiger 27.25p  £42.265m (MTR.L)

The investor in natural resource opportunities, provided an exploration updated with regard to Armada Exploration Limited which holds two exploration licences, covering a total area of 2,991km2, which are prospective for magmatic Ni-Cu sulphide, in Gabon. The licence holding is considered to present a frontier district-scale exploration opportunity. Metal Tiger holds a direct 18.5% interest in Armada, as well as an indirect interest, via its 19.99% holding in Cobre, which also holds an 18.5% interest in Armada. Metal Tiger and Cobre each hold 3,333,333 36-month options over Armada shares, with an exercise price of US$0.225. Armada has received the processed results from the NRG™ Xcite™ helicopter-borne time-domain electromagnetic (HTDEM) survey flown in March 2021. Modelling of the HTDEM survey data has identified 14 new prominent “late-time” conductive anomalies associated with the margins of interpreted mafic/ultramafic rock units. The 14 anomalies are distributed along the length of the 25km long Libonga-Matchiti Trend supporting the district-scale Ni-Cu potential of the target area. The Libonga North and Matchiti Central targets, which sit on the northern and southern ends of the Libonga-Matchiti Trend have been prioritised for drilling which is expected to commence following a successful Initial Public Offering of Armada on the Australian Stock Exchange.

Parsley Box Group 182.5p  £76.9m (MEAL.L)

The rapidly growing direct to consumer provider of ready meals focused on the Baby Boomer demographic, has hired two highly respected food development specialists in the field of Food Innovation and New Product Development (NPD) to help the company expand its ranges and deliver best in class products for the over 60s. Cassandra Suddes, who has worked with the Company as a consultant since the start of the year, will take the role of Head of Product in August 2021. Cassandra is renowned in the food industry for her work in commercial strategy, predicting future trends, leading and delivering product innovation launch programmes with a focus on food provenance. Additionally, Serena Philipson has been appointed as New Product Development Manager. Cassandra and Serena worked together at Tanfield Food Company (2005-2010) and Marks and Spencer (2011-2016).  

Power Metal 2.35p  £27.5m (POW.L)

The metals exploration and development company announced the execution of an agreement to acquire two exploration properties in Nevada USA. The projects include the Garfield Gold-Copper Project and the Stonewall Gold Project (acquired outright from London quoted Sunrise Resources plc (LON:SRES). The Properties will be acquired by a Nevada limited liability new company which will be the wholly owned local Nevada operating company for Golden Metal Resources Limited, Power Metal’s 100% owned UK private subsidiary.

What’s cooking in the IPO kitchen?

Poolbeg, Proposed AIM listing and demerger from Open Orphan (ORPH.L). Funds raised as part of Admission will be used primarily to fund the clinical trial costs associated with the development of the Company’s POLB 001 asset as a treatment for severe influenza and to acquire and develop new portfolio assets.  Offer details and timing TBA

Wise, the Fintech and payments start-up is planning to pull the trigger on a direct listing on the London Stock Exchange as soon as this week, becoming the latest tech firm and this time a Unicorn to cash in on the ongoing boom in flotations on the UK’s public markets. This will be entirely a vendor placing with no new shares to be issued, according to press reports.

Orcadian Energy, the North Sea focused, oil and gas development company, announces its intention to seek admission to AIM. The Company’s key asset is the 100% interest in the Pilot oilfield, with audited proven and probable reserves of 78.8m barrels (audited by Sproule BV). Orcadian plans to raise gross proceeds of c. £5m to progress its assets. Expected June/ early July.

Itim Group Limited (to be renamed itim Group plc) is a software technology company, established in 1993. Itim adds value by helping multi-channel retailers optimise their business and stores to improve financial performance and compete more effectively in the digital world of modern retailing. The Company provides flexible solutions proven at adding value as retailers transform stores, digital capabilities and operations suitable for modern retailing and profit improvement. The company plans to raise up to £15m on Admission on AIM (through a placing of new and existing equity). Due date late June / early July.

Spectral MD Holdings, Ltd., a predictive analytics group that develops proprietary AI algorithms and optical technology for faster treatment decisions in wound care, announces its intention to IPO onto AIM. Net proceeds from the IPO will be used to provide capital for the development of DFU technology which will include investment in additional clinical studies supporting the indication along with progressing regulatory filings; build a European presence and implement the Group’s sales strategy to sell the Group’s DeepView® product into various targeted European jurisdiction; build US distribution network and provide working capital. Due late June.

Baltic Classifieds Group PLC, the leading online classifieds group in the Baltics, announced their intention to IPO on the Premium Segment of the LSE. The Offer will comprise an offering of both new Shares to be issued by the Company, with gross proceeds expected to total approximately EUR 120m and existing Shares to be sold by ANTLER Equity Co S.à r.l and certain BCG shareholders. The directors intend to use the net proceeds from the Primary Raise for the repayment of existing debt in conjunction with the refinancing of the Senior Facilities Agreement targeting a net debt at IPO of approximately 2.75x FY21 Adjusted EBITDA. Expected early July.

The UK Residential REIT, a proposed closed-ended real estate investment trust established to invest in a diversified portfolio of affordable, privately rented residential real estate assets in attractive locations outside of London, announces its intention to IPO onto the Premium Segment of the LSE. URES is targeting Gross Issue Proceeds of  150m before expenses by means of a placing, offer for subscription and intermediaries offer of 150m Ordinary Shares plus an Issue of up to 50m Consideration Shares in connection with the acquisition of Seed Assets at an issue price of £1.00 per Ordinary Share. Expected market capitalisation following the completion of the acquisition of Seed Assets of £200m. Due 16 July

Nord Gold plc, the internationally diversified pure-play gold producer, announces the intended publication of a registration document and its potential intention to undertake an IPO on the Premium Segment of the Main Market. The Company has also applied for admission of the Shares to trading on the Moscow Exchange.

Victorian Plumbing Group Limited the UK’s leading online retailer of bathroom products and accessories, announces its intention to seek admission of its ordinary shares to trading on AIM. Group has grown rapidly in recent years and is now the UK’s leading online specialist bathroom brand by revenue in 2020 and the second largest retailer of bathroom products in the UK with an estimated 14.2% of the bathroom market by revenue in 2020. The Company’s growth trajectory was maintained in the current financial year, delivering results of £140.7m revenue, and £20.1m adjusted EBITDA for the six months ended 31 March 2021.

LionTrust ESG Trust PLC announces the publication of the Prospectus in connection with the IPO on the Premium Segment of the Main Market. The Company is targeting an initial issue of £150m by means of an Initial Placing, Offer for Subscription and Intermediaries Offer of Ordinary Shares at an issue price of 100 pence per Ordinary Share. In addition, pursuant to the Prospectus, a placing programme will allow the Company to issue up to an additional  250m Ordinary Shares and/or C shares, in the 12 months from the date of publication of the Prospectus and following Initial Admission.

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.” Due 22 June.

This document has been prepared by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific entity and is not a personal recommendation to anyone. Recipients should make their own investment decisions based upon their own financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor. The information contained in this document is based on materials and sources that are believed to be reliable; however, they have not been independently verified and are not guaranteed as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information in this document nor should it be relied upon as such. Any and all opinions expressed are current opinions as of the date appearing on this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document. This document is sent to you as market commentary only. As market commentary this document does not constitute any of (i) investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments for the purposes of the UK retained version of section B of annex I to Directive 2014/65/EU (“MIFID II Directive”); or (ii) investment research as defined in the UK retained version of article 36(1) of Commission Delegated Regulation 2017/565/EU made pursuant to the MIFID II Directive; or (iii) non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook).

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