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

Alien Metals 0.875p  £30m (UFO.L)

Further to its announcement on 7 June 2021, the Company has now completed its Phase 2 drilling program on the Hancock tenement, which is part of the Hamersley Iron Ore Project, Western Australia. The program targeted three main Direct Shipping Ore zones identified in the maiden drill program, which intersected high grade DSO mineralisation.  Phase 2 drilling completed in June 2021, with 40 Reverse Circulation (“RC”) holes for 2,175m. Excellent hand held portable XRF (“pXRF”) results across all targets. Sirius Extension, which adjoins the Sirius iron ore project held by Brockman Mining (124mt @ 60.32% Fe) resource drill plan completed with significant pXRF readings including 23m @ 60.5% Fe and 28m @ 60.5% Fe.  Ridge C including 9m @ 62.8% Fe, 10m @ 61.4% Fe and 10m @ 60.4% Fe has initially defined strike of over 800m.  Ridge E including 11m @ 65.5% Fe, 11m @ 64.5% Fe, 10m @ 63.1% Fe and 8m @ 62.4% Fe for over 1,300m strike length.  New target “Krill Back” identified southeast of the Sirius Extension. Laboratory results to follow once available.

Altona Rare Earths 16.50p  £3.3m (ANR.L)

The mining exploration company with a focus on Rare Earth Elements (REE) mining projects in Africa, announces it has raised £177,700 before expenses, through the issue of 1,480,836 new ordinary shares at an issue price of 12 pence per share, a 29% premium to the closing share price on 18 June 2021. The Company is issuing 740,419 warrants, on a one warrant for every two shares purchased basis, to the placees, with a strike price of 20 pence and an expiry date of 31 March 2023. The funds will be used to accelerate the Company’s business plan, specifically to commence its initial mining exploration work and facilitate a proposed London Stock Exchange listing.

Amino Technologies 165.50p  £137.9m (AMO.L)

In February of this year, the Group launched an ambitious new strategy to become a software-driven growth business. This new strategy capitalises on the increasing consumer expectation that we should all be able to connect to the TV and video we love on any device, at any time, wherever we may be. The Group’s award-winning Next Generation technology platforms make this modern TV experience possible, by providing Pay TV operators, broadcasters and media owners with smart, cost-effective ways to deliver it. By 2025, this strategy aims to triple Group revenues and increase the percentage of Group software revenues that are recurring to 70%. Early success has already been achieved, including delivering year-on-year double-digit growth in Annual Recurring Revenue in the first half of the current financial year. As momentum continues to build, it is the Board’s view that a new name would better reflect the true scale, breadth and potential of the Group’s operations and market positioning. As a result, Amino Technologies plc will be renamed “Aferian plc”. The Group’s two go-to-market brands, 24i and Amino Communications, will continue to operate under their respective names. After more than five years on the Group’s Board of Directors, Karen Bach has notified the Board of her intention to step down as Non-Executive Chairman. Karen has made a significant contribution to the Group during her tenure, including leading the Board as it developed the Group’s 2025 strategy, which is already delivering meaningful improvements in revenue quality and growth. Karen will continue to serve in the role until a successor has been appointed and a search process to find that successor will commence shortly.

Ilika 142.50p  £196.1m (IKA.L)

The pioneer in solid-state battery technology, provides the following update on trading for the year ended 30 April 2021 and notice of its full year results announcement. Trading for the year ended 30 April 2021 has been in line with management expectations. The Company expects to announce revenues of approximately £2.3m (2020: £2.8m), share based payment adjusted EBITDA loss of £2.3m (2020: £2.1m) and cash and cash equivalents at the period end were £9.8m (30 April 2019: £14.8m). Ilika expects to announce its full year results for the year ended 30 April 2021 on Tuesday 6 July 2021. 

Remote Monitored Systems 0.925p  £19.2m (RMS.L)

The Group has signed an agreement with PIC Consultants Ltd (PIC) to supply a new range of high-grade retail hydroponic nutrients for distribution into the UK hydroponics market.  The range consists of eight specially formulated solutions, all of which contain patented nano particles produced by the Group’s subsidiary, Pharm 2 Farm Ltd, and will be marketed throughout the UK and Ireland under the brand nano.10-9. The pressure on the agriculture industry to meet the growing demand for grains and food leads to the search for high-yielding farming techniques, such as precision farming and urban farming. Hydroponics is considered a potential solution for the growing concern about food security in the coming years. 

Hotel Chocolat Group 367.5p  £461.8m (HOTC.L)

The premium British chocolatier, has agreed to acquire the entire issued share capital of Rabot 1745 Limited which it does not already hold. Rabot was established in 2016 as a joint venture between the Company and Andrew Gerrie (the Non-Executive Chairman of Hotel Chocolat) to develop a range of beauty products inspired by the wild beauty of the Group’s Saint Lucian cacao farm and rainforest spa. The Group and Andrew Gerrie own 47% and 40.5% respectively of the issued share capital of Rabot with the balance held by non-related parties. The Group holds its c. 47% of the issued share capital of Rabot through its subsidiary, Hotel Chocolat Limited (the “Subsidiary”).  The Subsidiary has agreed to acquire the remaining c.53% of the issued share capital of Rabot, including the 40.5% owned by Andrew Gerrie, for a total cash consideration of £4.00. For the financial year ended 30 June 2020 Rabot reported a net loss after tax of £0.4m. On completion of the Acquisition Rabot is expected to have total assets of c.£0.7 m, and liabilities of c.£0.9 m

Gaming Realms 32.50p  £95.3m (GMR.L)

The developer and licensor of mobile-focused gaming content, has signed a licensing agreement with International Game Technology PLC, a multinational gaming and lottery company. Under the terms of the agreement, Gaming Realms will produce Slingo games, an entertainment genre popular among mobile gaming enthusiasts that combines elements of slots and bingo, based on some of the highest-performing slots brands within IGT’s game library, including the Cleopatra® and Da Vinci Diamonds® brands.

Reabold Resources 0.58p  £51.8m (RBD.L)

The investor in upstream oil and gas projects, notes the announcement made by ADX Energy Ltd relating to an extension of the Parta Exploration Licence (“Parta”) in Romania. The Romanian National Agency for Mineral Resources has approved an 18-month extension for Parta for the current exploration phase until 3 December 2022. Reabold holds a 51% interest in Danube Petroleum Limited, which holds a 100% interest in Parta (including a 100% interest in the Parta Sole Risk Area) and a 100% interest in the Iecea Mare Production license in Romania. The remaining 49% of Danube is held by ADX, which is the operator. 

Velocys 5.38p £57.2m (VLS.L)

The sustainable fuels technology company announced that sustainable aviation fuel (SAF) produced by the Company’s proprietary technology using woody biomass residue feedstock has been used in a commercial flight by Japan Airlines (JAL). Japan Airlines flight (JAL #515) from Tokyo to Sapporo was completed on 17 June 2021. This important milestone follows on from the collaboration agreement signed with Toyo Engineering Corporation (Toyo) to commence the development of Toyo’s commercial projects to produce SAF and other renewable fuels in Japan using Velocys micro-channel FT technology. The flight is the first commercial flight in the world to use SAF derived from gasified wood-chips synthesised into aviation fuel. The fuel was produced in a Velocys FT reactor from the hydrogen and carbon gases generated by the gasification of the wood-chips at the demonstration plant in Nagoya  in 2020. This facility produced 2,366L of neat aviation fuel blendstock which was tested to ensure that it met the required international standard, ASTM D7566 Annex1. SAF that meets this specification can be blended into conventional jet fuel at any ratio from a small fraction up to 50%.

Wameja 7.75p  £90.21m (WJA.L)

Wameja, a joint venture partner with Mastercard in the HomeSend global payment hub, advises that the Settlement Agreement referred to in the announcement of 18 June 2021 has been executed by all parties. The Settlement Agreement resolves the Potential Indemnity Claims as  announced on 23 October 2020 and 5 November 2020  (including the potential for further claims against Wameja under the relevant indemnity granted to Seamless Distribution Systems AB in the sale and purchase agreement for the sale of Wameja’s core business that completed in July 2019). Wameja and Burst Acquisition Co. Pty. Ltd, a company controlled by Mastercard, will now proceed with Scheme of Arrangement proposed under the Scheme Implementation Agreement as announced on 10 September 2020 and amended on 9 April 2021, 24 May 2021 and 18 June 2021. Wameja anticipates lodging the Scheme Booklet with the Australian Securities and Investments Commission (“ASIC”) for ASIC’s review and comment on or about 2 July 2021 and Wameja will provide an indicative timetable for the Scheme at the time of lodgment.

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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