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.

Joiners: Thor Explorations (TSXV:THX;THX.L) has completed a secondary listing on AIM. Segun Lawson, President & CEO, stated: “Today’s admission to the AIM market of the London Stock Exchange represents another milestone in the development of the Company, offering wider access for investors as we progress through a transformational period in the Company’s development. We continue to focus on pouring first gold at the Segilola Project in Nigeria in July 2021, targeting publication of a Maiden resource at Douta in Senegal by the end of 2021 and the exploration programs focused on the Company’s exploration licences running along the Ilesha Schist belt in Nigeria.  Mkt Cap £127m.

Victorian Plumbing Group Limited  VIC.L the UK’s leading online retailer of bathroom products and accessories, has joined 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. Mkt Cap £850m, gross proceeds of £11.6m and sale shares of £285.9m.

Spectral MD Holdings (SMD.L)., a predictive analytics group that develops proprietary AI algorithms and optical technology for faster treatment decisions in wound care, announces its has joined 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. Raised £11.3m at 59p. £80m mkt Cap.

Leavers: No Leavers Today.

Banquet Buffet

4Basebio UK Societas 405p  £49.88m (4BB.L)

The specialist life sciences Group focused on exploiting intellectual property in the field of gene therapies and vaccines, announces it has filed a patent application for a novel protected and stabilised linear synthetic DNA type, “osDNA™.  DNA is susceptible to degradation by nucleases which are naturally occurring enzymes within organisms and which have a vital role in the regulation of many cellular processes, while also protecting against foreign DNA species. Enzymatic DNA degradation can render gene therapies ineffective and is a substantial consideration when developing gene therapies or DNA vaccines. The Company’s novel osDNA™ product has demonstrated increased longevity compared to conventional DNA types. Unlike hpDNA™ which is a closed DNA construct, osDNA™ is open linear DNA and incorporates all of the established benefits of hpDNA™ over widely used plasmid DNA, in particular the absence of bacterial backbone, antibiotic resistance genes or endotoxins. osDNA™ therefore also benefits from a high level of purity. Furthermore, a long terminal mono-nucleotide sequence (homopolymeric sequence) is an essential feature of high-quality mRNA. These types of sequences are known to be difficult to manufacture through plasmid fermentation. osDNA™ is readily able to incorporate these sequences, positioning osDNA™ as a highly suited template for the production of mRNA products, an area of significant commercial opportunity for the Company’s products and technologies.

ADM Energy* 3.65p  £5.75m (ADME.L)

The natural resources investing company, provides an update on its loan facilities agreement announced on 25 August 2020.In August 2020, the Company entered into a definitive agreement with a consortium of investors  raising, in aggregate, £200,000 through unsecured loan facilities . The Loan Facility, which was due to mature on 15 August 2021, remains outstanding in full. The Company has now entered into agreements with the Lenders to extend the terms of the Loan Facility as follows:   £100,000 of the Loan Facility extended to 31 December 2021, at no interest, in consideration of 2,352,941 warrants exercisable at 4.25 pence each, being the placing price of the most recent fundraise; and · £110,000 of the Loan Facility (comprising the principal and accrued interest) extended to 30 June 2022 in consideration of fixed interest of £11,000 and 2,352,941 warrants exercisable at 4.25 pence each, being the placing price of the most recent fundraise.

Audioboom Group 880p  £138m (BOOM.L)

The leading global podcast company announced that it has continued its strong sales momentum, with signed advertising bookings after less than six months of this year now representing more than 99% of the recently upwardly revised market expectations for revenues for the year ending 31 December 2021.  In light of this continued strong trading, and the prospects for the months ahead, the Board now expects that Audioboom will generate revenues significantly in excess of current market expectations for the year and an increased adjusted EBITDA. This performance has been driven by recent developments in relation to Audioboom’s content- focused expansion plan. Highlights include:-  Continued expansion of Audioboom’s ad tech capabilities and associated revenue streams, enabling the re-monetisation of the network’s extensive back catalogue of content. High demand for premium advertising inventory which has enabled the Company to increase average ad unit pricing by 22% versus 2020, while achieving a greater than 97% fill rate on Audioboom’s top 15 shows. Successful Audioboom Originals Network (AON) launches including Dark Air with Terry Carnation, The Southern Tea, and Dark History – a show which hit number 1 on the Apple Podcast Chart in the US, UK, Canada and Australia following its launch on 2 June 2021. Episode 1 of Dark History has received more than 2 million listens. Continued audience growth through new content partnerships and AON launches, highlighted in the June 2021 Triton Digital Podcast Report, in which Audioboom remained the fourth largest podcast publisher in the US, by weekly reach, while growing its weekly reach by 69% on the same period in 2020 as per the latest report. The Board is also pleased to note that with effect from 27 May 2021, Audioboom has been included in the MSCI Micro-Cap Index. 

eEnergy Group  22.5p  £55.4m (EAAS.L)

The  “Energy Efficiency-as-a-Service” (EEaaS) business in the UK and Ireland, has entered into various agreements with the other existing shareholders of eEnergy Insights Ltd (EIL) (a recently formed specialist smart metering measurement equipment and analytics business) and EIL. The Agreements follow the original investment of 19 April 2021 and will increase the Group’s equity interest in EIL from 33 per cent. to 37.5 per cent. and the Group will become the exclusive distribution partner, with the potential to increase its interest to 100 per cent. over time.

Europa Metals 10p  £4.9m (EUZ.L)

The European focused lead-zinc and silver developer, has appointed Wardell Armstrong International Ltd , Cornwall, operating in the UK and internationally, as the Pre-Feasibility Study  manager for its wholly owned Toral Lead, Zinc and Silver project, Spain. WAI is a leading, globally recognised mining consultancy with a track record of conducting all levels of technical study required on projects that have successfully been financed and developed into full mining operations. The Company has previously been working with WAI on the project’s metallurgical and processing phases relating to recovery and the assessment of the potential zinc and lead/silver concentrate products at Toral and, following a competitive tender process, it will now lead the formal PFS. enAs announced on 7 June 2021, work continues in line with the Company’s internal schedule, with further resource drilling underway. The Company will provide updates as appropriate as the key component parts of the PFS are undertaken. At all times, the Company will prioritise the health and safety of its workforce, especially during the current COVID-19 conditions.

Falcon Oil & Gas 5.78p  £58.5m (FOG.L)

 Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG) announced the commencement of the 2021 work programme, starting with operations at Kyalla 117 N2-1H ST2  in the Beetaloo Sub-Basin, Northern Territory, Australia with our joint venture partner, Origin Energy B2 Pty Ltd, a wholly owned subsidiary of Origin Energy Limited . On-site operations at Kyalla 117 have begun, with rigging up now complete, and clean-up operations resumed. These operations, if successful, will result in an extended production test  being carried out to determine the expected longer-term performance of the well.

LPA Group 72p  £9.2m (LPA.L)

LPA Group Plc, the high reliability LED lighting, electronic and electro-mechanical system designer and manufacturer, announced a further contract win. LPA confirms the contract award to supply 165 new build carriages with LED lighting systems, for the UK’s East Midlands Railway Aurora InterCity Fleet.  Manufacture of the trainsets will be from Hitachi’s UK Newton Aycliffe site.   The award is in line with Management’s expectations. Paul Curtis, CEO commented “Our business development activities remain strong with this award adding to our already record order book.  Manufacture for this contract will commence this financial year.”

Proton Motor Power 54.5p £422m (PPS.L)

Europe’s leading designer, developer and producer of hydrogen fuel cells and electric hybrid systems with a zero-carbon footprint, announces that it has signed a Memorandum of Understanding with Electra Commercial Vehicles Limited to develop the zero emission fuel cell truck market in the UK and Ireland. Electra was founded in 2017 by Sid Sadique to develop, test and manufacture all electric trucks. It is the leading producer of zero emission trucks in the UK and has a production capacity for over 200 vehicles per annum. Electra supplies all electric trucks to a number of councils throughout the UK and Ireland as well as fleet operators. In order to provide its electric trucks with enhanced range and duty cycles, Electra wishes to incorporate a fuel cell range extender power pack into its vehicles. Demand for zero emission trucks in the UK is rapidly increasing, as local councils and large fleet operators plan to meet their carbon emission reduction targets. To meet this demand, Electra is planning to expand its production capacity in the next 12 months. Under the MoU, Electra will act as system integrator to integrate Proton Motor’s fuel cell systems into its existing electric truck portfolio. Proton Motor will provide engineering support and training to Electra during the development and qualification of their fuel cell trucks. Both parties will jointly develop a prototype vehicle for serial testing and type approval, which will allow Electra to make an unrestricted number of fuel cell powered trucks. Additionally, Electra will place an initial order for Proton Motor fuel cell systems to be incorporated into five of its trucks. Both parties have also agreed to carry out sales and marketing activities jointly in the UK.

Semper Fortis Esports* 3.05p  £12.7m (SEMP.L)

The esports company focused on establishing esports teams, forming brand and technology partnerships, and providing business to business advisory services ,reported that, following a successful 2020/21 season in the Rocket League Championship Series, its Top Blokes team finished in 3rd position in its inaugural season with its current squad and under the ownership of Semper Fortis Esports. Kevin Soltani, CEO of Semper Fortis Esports, commented: “We are very proud of the performance of our Top Blokes team, which has achieved an outstanding result in its inaugural season as a professional team. The team finished 3rd in the Rocket League RLCS X, being taken out by the legendary Vitality team who went on to win the championship. We look forward to next season with increasing confidence.”

Surgical Innovations 3.25p  £31.3m (SUN.L)

AGM Update form the   designer, manufacturer and distributor of innovative technology for minimally invasive surgery . Following a challenging trading period in the previous financial year as a result of the global pandemic, the Company has experienced optimistic signs of recovery as a number of key healthcare markets begin to resume elective surgery at close to pre-covid levels. It is clear that the pent-up demand for surgery continues to increase and healthcare providers are under pressure to find innovative ways of increasing productivity and reducing waiting times and costs. The NHS is beginning to utilise a seven-day operating week for surgery as well as continued use of the private sector to reduce the backlog; similar initiatives are also being seen in other key markets. The increased focus around sustainability continues to gain traction with key stakeholders in the healthcare industry, as they recognise the importance of reducing clinical waste from single use plastics. In conjunction with the Royal College of Surgeons and the Centre for Sustainable Healthcare, Elemental Healthcare (a wholly owned SI subsidiary) launched the Green Surgery Challenge1 in February this year, an initiative aimed at developing surgical practices that reduce plastic waste in operating theatres.

What’s cooking in the IPO kitchen?

Silverbullet is a provider of digital transformation services and products which assist brand owners and advertisers to optimise their digital marketing investment, with a particular focus on unlocking the potential of first party data and contextual intelligence. The Company announced its intention to seek admission of its shares to trading on AIM, with admission expected to take place on 28 June 2021. Seeking to raise £9.5m. Expected mkt cap c£34.5m.

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.

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.

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.

*A corporate client of Hybridan LLP

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