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

Block Commodities 0.024p  £1.8m (AQSE:BLCC)

Further to the announcement on 16 March 2021, Block Commodities announced that the Company and Century Cobalt Corporation, together the Acquiring Parties, have entered into an extension to the option agreement to acquire a 70% interest in a Medicinal Cannabis licence granted to Magnus Cannabis Group (Private) Limited by the government of Zimbabwe. Under the extension agreement, the exclusivity period to complete the Acquisition is extended to 31 August 2021.

CentralNic 83.1p  £208.7m (CNIC.L)

The global internet platform that derives revenue from the subscription sales of domain names and web services, announces the appointment to its board of Matthew Max Edward Royde (“Max Royde”) and Horst Oskar Siffrin as Non-executive Directors with immediate effect. Max and Horst are joining the board as shareholder representatives of Kestrel Partners LLP and inter.services GmbH respectively. Max Royde is currently managing partner at Kestrel Partners, an investment management company specialising in business-critical software companies, which has a beneficial holding in CentralNic of 56,583,670 shares or 22.53%.  Max co-founded Kestrel Partners in 2009 and is a fund manager of Kestrel Opportunities. Prior to Kestrel, Max was a managing director of KBC Peel Hunt, running its technology franchise. He has over 20 years’ experience focusing on the technology sector. Horst Siffrin started his career as a German diplomat serving in Germany, the UK, Ethiopia, Nigeria, Bolivia, Poland and Spain. He is partner of inter.services holding/ investments, which has a beneficial holding in the Company of 37,085,870 shares or 14.77% and owner of H.O. Siffrin Consulting based in Berlin. From August 2011 until the reverse takeover of CentralNic in August 2018 he was Chairman of the Supervisory Board of KeyDrive SA, Luxemburg and member of the Advisory Board of the Key-Systems Group. In 2018 he co-founded AstraPharma.

Drumz  0.55p  £1.9m (DRUM.L)

AGM Statement from  the investing company, focused on building value in the technology sector. “We regret the ongoing Government restrictions relating to COVID 19 mean that attendance at the meeting to be held today has to be curtailed. The following statement provides an update on the business. This is the first set of results following the re-focus of the Group on the technology sector. Our first investment in Acuity Risk Management Limited, which specialises in the management of cybersecurity risk, is in a sector where customer demand is running exceptionally high, as more and more businesses seek to protect their data for financial, reputational and regulatory reasons. Demand for the company’s proprietary software platform STREAM™ continues to grow and I look forward to reporting further on Acuity’s progress in the coming months. Our strategy is to invest in and acquire technology businesses where the Directors believe they can be improved by a combination of our management expertise and the provision of investment to improve the businesses growth prospects. We remain focused on building on the performance improvements already made at Acuity and we continue to look at investment opportunities where we can transform value, with the priority being to deliver enhanced value for shareholders. I look forward to reporting on further progress in due course.”

MediaZest* 0.095p  £1.3m (MDZ.L)

The creative audio-visual company, announced its involvement with the new Vashi store in Covent Garden, London. MediaZest was delighted to be chosen by bespoke fine jeweller Vashi to supply audio visual solutions to their recently opened Covent Garden flagship store. This includes the largest deployment of the Samsung “The Wall” Business MicroLED product in UK retail as part of a double height, floor to ceiling interactive “Love Stories” installation within the immersive in-store workshop. More information about the store can be seen at https://www.vashi.com/covent-garden. MediaZest will announce its financial results for the 6-month period ended 31 March 2021 later this month.

Sabien Tech 23p  £3.3m (SNT.L)

The Company focused on building a portfolio of solutions in the heating, cooling, and transportation sectors, announces today the appointment of Dr. Athan Fox as Chief Scientific Officer (CSO), effective immediately. Athan, who holds a Doctorate in Chemistry awarded by the University of Cambridge, is an entrepreneur and advocate whose work within sustainability, recycling and the circular economy is well known. His experience encompasses organic chemistry, intellectual property prosecution, technology transfer and fund raising for research, technology and innovation. In the last five years, Athan has been active in fund raising within both public and private sectors. During this time, he has also been selected to represent the UK and EU technology sectors on a series of Government-led missions to international markets. Dr Fox is undertaking this role at Sabien under secondment from Ever Resource Ltd, a company that is pioneering a recycling revolution through the development of new technology and materials recovery methods, where he will continue to be engaged on complementary projects.

SmartSpace Software  160p  £46.3m (SMRT.L)

The provider of ‘Integrated Space Management Software’ for smart buildings and commercial spaces; ‘visitor reception, desks and meeting rooms’ has signed a new international customer agreement with ‘Gategroup’. The Contract has been secured by its subsidiary, SwipedOn and will involve the deployment of the SwipedOn Visitor Management solution across Gategroup’s international estate. SwipedOn will initially provide its solutions to 150 sites with a potential to expand to 200 of Gategroup’s locations globally. Deployment will commence immediately in UK, Europe, USA and Australasia. 100% of revenues earned from the Contract are expected to be recurring ‘SaaS’ revenues.

Vast Resources 7.75p  £16.5m (VAST.L)

The mining company with mines and projects in Romania and Zimbabwe has appointed Wardell Armstrong, a leading multidisciplinary environmental, engineering and mining consultancy company, to work on the verification of the increased JORC Resource which is being targeted with the upcoming exploration drilling campaign at the Baita Plai Polymetallic Mine in Romania. The objective of the upcoming exploration drilling campaign is to target the downdip extension of the Antonio skarn from 19 level to 22 level and to convert part of the Exploration Target of between 3.2M–5.8M tonnes with copper (‘Cu’) range of 0.50–2.00%, gold (‘Au’) range of 0.20–0.80 g/t and silver (‘Ag’) range of 40-80g/t to a JORC classification. Exploiting the Antonio skarn at planned production capacity to a 21 level elevation would provide sufficient mineralisation for an approximate 7 to 8 year period and is the focus of a continuation of the incline access beyond 19 level. The Company intends to expand exploration drilling to the Antonio North skarn in early 2022 with the objective of converting part of the Exploration Target assigned to the Antonio North skarn, which stands at between 1.4M–2.8M tonnes, to JORC classification.

Victoria Oil & Gas 6p  £15.4m (VOG.L)

Victoria Oil & Gas Plc, whose wholly owned subsidiary, Gaz du Cameroun S.A. (GDC), the onshore gas producer and distributor with operations located in the port city of Douala, Cameroon, has entered into a definitive financing agreement with Meridian Capital (HK) Limited to raise maximum gross proceeds of US$7.5m through the issue of unsecured loan notes. The proceeds of the Facility will be utilised for general working capital purposes, including long lead Items for the proposed well on the Matanda licence.

VR Education 17.25p  £39.5m (VRE.L)

The virtual reality technology company focused on becoming a leading global provider of virtual communications solutions through ENGAGE, announced the successful completion of an oversubscribed placing of new Ordinary Shares  at 16p raising c. £7.7m gross. Approximately 75% of the net proceeds from the Placing is expected to be used for organisational development purposes including hires across all functions, with a new focus on building a sales, marketing and customer success driven organisation. The sales function is to be expanded to c.25 people, with business development roles to be spread across the US, Europe and the Middle East. Customer support roles across the US and Asia will also be strengthened to allow for 24/7 customer support throughout all regions, and the intensity of investment in product features will continue with additional hires in product / engineering. The balance of the net proceeds (approximately 25%) will be spent on sales and marketing activities, principally through traditional travel and trade show opportunities with targeted sponsorship and advertising (including digital). The Company’s focus is on raising awareness of the ENGAGE platform and the development of the Company’s global strategy through direct and partner channels across the US, Asia and Middle East geographies.

Zinwald Lithium 11.75p  £24.1m (ZNWD.L)

The German focused lithium development company, announced that its 50%-owned subsidiary, Deutsche Lithium GmbH, has been granted a five-year Exploration Licence (the Sadisdorf Licence) covering approximately 225 hectares (‘ha’) in the Erzgebirge or Ore Mountains region of Saxony, Germany. The Sadisdorf Licence has the potential to provide additional resource upside to the Company’s advanced Zinnwald Lithium Project and is in line with its strategy to become an important supplier to Europe’s fast-growing lithium sector.

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. 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. Due 30th June.

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.

*A corporate client of Hybridan LLP

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