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

Avingtrans 430p  £137.5m (AVG.L)

Avingtrans PLC, which designs, manufactures and supplies critical components, modules, systems and associated services to the energy, medical and industrial sectors, announced that  Stainless Metalcraft has received planning permission for the new training school to be located at its Chatteris site, with work due to begin on construction imminently. The centre, which will be funded through a £3.16m grant from the Cambridgeshire and Peterborough Combined Authority, will provide training across a range of vocational subjects for between 80 and 130 apprentices per year.

Crossword Cybersecurity* 41.5p  £24.1m (CCS.L)

The technology commercialisation company focused on cyber security and risk management, announced that Spotlight Sports Group, the digital publisher and integrated betting platform, has implemented Rizikon Pro, Crossword’s supplier assurance and third-party risk management platform for SMEs.  As a result, Spotlight Sports Group has halved the time spent on supplier management, gained better visibility of supplier risks, and cut the costs of maintaining its ISO 27001 Information Security Management certification. Spotlight Sports Group is the owner of Racing Post, which has been the home of horse racing in the UK and internationally since launching as a newspaper in 1986. Today, its all-digital platform offers breaking industry news, race results, statistics, tips, and betting platform integration. As part of a heavily regulated industry, Spotlight Sports Group invests huge amounts of time and effort to ensure it, and its 40+ suppliers, meet the governance, regulatory and compliance requirements of its industry. Victor Mihăilescu, Head of Security at Spotlight Sports Group  said “All of our supplier onboarding communication and management now takes place in Rizikon Pro.  As a result, we have halved the time we spend on supplier management and made the process easier for our suppliers. All the information and discussions about questionnaires is kept in one place and we can clearly see when and by whom forms were completed, removing any non-repudiation risk.”

DXS International* 10p  £5m (AQSE:DXSP)

The clinical decision support developer and supplier of clinical decision support systems, announced the grant of NHS Digital certification, for DXS ExpertCare, its ground-breaking digital hypertension medicines optimisation solution. An open listing on the GP IT Futures online Digital Buying Catalogue gives GP practices, Clinical Commissioning Groups (CCGs), or any other NHS primary health systems in the UK the opportunity to buy rapidly evolving digital e-health tools and services that are centrally funded. DXS ExpertCare represents an important breakthrough in primary care hypertension management and reduces the risk of avoidable medicines-related consequences. Two-thirds of people with multimorbidity are hypertensive and treating them is often complicated. Different conditions and treatments may interact in complicated ways and cause negative impacts. ExpertCare employs complex medicines optimisation algorithms with the goal of mitigating prescribing complexity. It automatically provides just-in-time prescribing advice to clinicians and healthcare workers aimed at controlling the patient’s blood pressure to an appropriate target. The algorithm driving the solution uses a matrix pattern recognition approach so that the program can calculate the optimum drug regimen for any combination of comorbid diseases. It then compares this with the patient’s current medication and recommends a sequence of drug changes to achieve concordance with all Best Evidence Medicine (BEM) guidelines that apply to an individual patient. The ExpertCare solution, that also has CE Class A medical device certification, is currently being piloted in general practices across the UK in preparation for commercial release.

Feedback 1.05p  £11.2m (FDBK.L)

The specialist medical imaging technology company, today announces that a UKCA mark, the post-BREXIT UK regulatory certification, has been affixed to Bleepa, Feedback’s flagship medical imaging communications platform, adding to its portfolio of regulatory approvals for Bleepa. Dr Tom Oakley, CEO of Feedback, commented: “In addition to the CE mark affixed last year, Bleepa has now enhanced its regulatory technical file to include the UK’s medical Device Manufacturing mark. The new UK product marking is used for goods being placed on the market in Great Britain post-BREXIT and further validates as well as provides confidence in the quality and expertise of Bleepa’s technology.”

Gaming Realms  34.05p  £98.3m (GMR.L)

The developer and licensor of mobile focused gaming content, having received its provisional supplier license earlier this year, has now launched its Slingo Originals content in Michigan, U.S.A. with BetMGM. BetMGM is a leading sports-betting and online gaming operator in the U.S. and, as of May 2021, is the market leader of the iGaming market in Michigan. Under the terms of the direct integration agreement between BetMGM and the Company, BetMGM has launched with an initial three Slingo games, with more games scheduled to follow shortly. The Company has also signed agreements for Michigan with a number of other leading operators in the market, and its full portfolio of Slingo Originals games is set to go live in Michigan over the coming weeks.

Great Western Mining Corporation  0.23p  £8.57m (GWMO.L)

Great Western Mining Corporation, which is exploring and developing multiple early-stage gold, silver and copper targets in Nevada, USA, advises that it has now completed its first-phase drilling programme for gold and silver at the Rock House Group, with 6 holes drilled at the Southern Alteration Zone (SAZ) totalling 1,685 feet (515 metres) using a reverse circulation (RC) rig. This week the cuttings from these holes will be bagged and trucked to an independent laboratory in the area for assaying. The SAZ is one of three potential prospects at RH, the others being the Eastern Shear Zone and the Northern Slate Zone. Whilst RH has never previously been drilled, possible mineralisation has been identified through satellite imagery. This was confirmed prior to the commencement of drilling by rock chip sampling, soil sampling and trenching, with minor amounts of gold and silver produced from ‘float material’ collected on site. GWM has now completed the initial RC drilling programme for RH as well as the Olympic Gold Project, previously reported, with a total of 17 holes drilled since mobilisation in April. Once assay results become available, the next phase of follow-up drilling can be determined for later this year. The current pause in RC drilling will provide the opportunity to commence drilling at Mineral Jackpot and at the M4 copper target, using a small and easily transportable coring rig.

Gresham House  910p  £299m (GHE.L)

The specialist alternative asset manager, announced the completion of the acquisition of Appian Asset Management Ltd, following regulatory approval from the Central Bank of Ireland. Based in the Republic of Ireland, Appian is an active asset manager with c.EUR350m in Assets Under Management (AUM) as at 31 December 2020. The Acquisition enhances the Group’s capabilities to develop existing strategies in Ireland and Europe, particularly those with a sustainability focus including forestry, sustainable infrastructure and real estate. Appian’s existing funds complement those offered by Gresham House and will benefit from the support of the Gresham House brand, infrastructure and central resources. In addition, the ambition to increase its presence in alternative asset classes dovetails with the Group’s existing forestry asset management platform and growth strategy in Ireland.

Okyo Pharma 6.27p  £60m (OKYO.L)

Okyo has retained the services of Ora, Inc., a world-class ophthalmology contract research organisation (CRO), to guide the company’s upcoming product development and lead the regulatory strategy of OK-101 for the treatment of dry eye. OK-101, OKYO’s lead pre-clinical compound is a novel long-acting GPCR-based anti-inflammatory drug candidate. “We are eager to complete IND-enabling studies on OK-101 and move it forward into the clinic as we believe the drug’s novel chemical composition, designed as a lipidated stable peptide, offers a new approach to the treatment of DED,” said Gary S Jacob, Ph.D., CEO of OKYO. “We are especially pleased and excited to be working with Ora as we move forward towards an IND filing.”

Oriole Resources 6.15p  £59.7m (ORR.L)

Final results for its recently completed maiden diamond drilling programme at the 51%-owned Bibemi gold project in Cameroon. Results reported today support the potential for large-scale mineralisation at the Project, with gold now confirmed at all four prospects within this 8.3km-long orogenic system. Best intersections from holes BBDD010 to BBDD029 include 3.10 metres grading 1.07 grammes per tonne gold  and 0.80m grading 27.90 g/t Au, the latter of which correlates with a previously reported visible gold interval. The widest zones of mineralisation to date (up to 12m) have been returned from the southern end of the Bakassi Zone 1 prospect, with the most robust intervals including 2.45m grading 2.96 g/t Au, 3.60m grading 1.75 g/t Au and 12.40m grading 0.71 g/t Au. There appears to be clear continuity of the mineralised structures between drilling fence lines BZ1_L6 and BZ1_L7, which are 800m apart, and it is interpreted that the mineralisation continues southwards along strike to Lawa West. Infill and extension drilling around these lines will be a priority focus for further drilling later in the year, although work plans are currently being designed for all of the prospects.

Proactis 74p  £70.7m (PHD.L)

The business spend management solution provider, today reports that forensic investigations into the cyber security incident first detected by Proactis on Sunday 16 May, have now concluded. The investigations confirm that none of Proactis’ customer systems were compromised and only a very small amount of low level internal and non-commercially sensitive data, limited to a standalone, services-based business unit in the US was accessed by the perpetrators. The effectiveness of the network segregation in place played a key part in protecting Proactis during the incident. The Company confirms there will be no material financial impact on Proactis as a result of the incident. The Company will continue to work with the relevant regulators and law enforcement agency, including the Information Commissioner’s Office, to ensure that any follow up action required takes place.

What’s cooking in the IPO kitchen?

CMO Group PLC, the UK’s largest online-only retailer of building materials, announced its intention to seek admission to AIM. The Group currently operates seven specialist websites, Roofingsuperstore.co.uk, Drainagesuperstore.co.uk, Insulationsuperstore.co.uk, Doorsuperstore.co.uk, Tileandfloorsuperstore.co.uk, cmotrade.co.uk and Totaltiles.co.uk. Admission due early July.

Seraphine Group,  intends to IPO on the Premium Segment on the Main Market. Seraphine, and together with its subsidiaries, is an international digitally-led maternity and nursing wear brand. The final offer price will be determined following a book-building process. Admission expected July.

Literacy Capital PLC, announces its intention to seek admission of its ordinary shares of £0.001 to trading on the Specialist Fund Segment of the Main Market. The Company was created in September 2017 as a permanent capital vehicle to allow longer term decision making and with the intention to generate substantial investment returns. As at 31 March 2021, the Company’s unaudited Net Asset Value is approximately £96.4m. Literacy Capital Asset Management LLP is the Company’s investment manager.

LungLife, a developer of clinical diagnostic solutions for lung cancer enhanced by artificial intelligence (AI), announces intention to seek admission to AIM. The Company’s technology is a combination of the recovery of rare cells and blood-based biomarkers shown to be altered in lung cancer. The Company employs machine learning to improve upon existing computer software to identify informative cells from blood, and intends to build a deep, novel pool of lung cancer-related data for AI-enabled applications designed to improve test performance over time. Admission due early July.

Helium Ventures PLC, announces admission to the AQSE Growth Market. The Company has been formed to identify either investment opportunities or acquisitions in the upstream natural gas sector and in particular in helium. Admission date TBC.

Seraphim Space Investment Trust PLC, a newly established closed-ended investment company which will invest in a diversified international portfolio of early and growth stage Space Tech businesses, announces the publication of its Prospectus in connection with the IPO to the Premium Segment of the Main Market. The Company is targeting gross proceeds of up to £180m through the issue of up to 180m Ordinary Shares by way of the Initial Placing, the Offer for Subscription, Direct Subscriptions and the Intermediaries Offer at 100 pence per Ordinary Share. The Company will subsequently also acquire stakes in four Space Tech businesses upon the completion or termination of currently pending corporate activity in relation to those assets. Assuming the successful completion of these transactions currently underway, the Company’s investment manager, Seraphim Space estimates approximately £70m of value relating to the Retained Assets could be acquired by the Company.

Future Biogas Group plc, is a newly formed holding company which will acquire 100% of Future Biogas Limited (“FBL”). Future Biogas is a clean energy company that operates biogas plants in the UK. It is one of the largest biogas producers in the UK, delivering approximately 5,000 cubic metres per hour of green gas to the Gas Grid. FBL was formed in 2010 in order to develop and operate biogas plants.  The Group has deployed over £125m and built 12 biogas plants in the UK since then, largely through tax efficient funding such as VCT and EIS. In 2020, the ten biogas plants operated by the Group generated over 426 GWh of renewable energy. TBC ordinary shares of £0.01 each in the capital of the Company. In addition to the biogas plants it operates on behalf of third parties, the Company intends to build on its experience by constructing its own portfolio of new bioenergy plants with carbon capture storage (“BECCS”). Target fundraise up to £35m. Anticipated market cap TBC. Admission date TBC

Saietta Group, announces intention to list on AIM. Saietta, is a UK company that has developed an innovative AFT electric motor (a design of axial flux motor), designed to deliver class-leading performance for its target markets whilst being low cost and built for mass market production. Saietta’s initial target market is the high volume, fast growing lightweight mobility market including motorcycles in Asia. Admission date and market cap TBC.

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 TBC

Wise, the Fintech and payments start-up is planning to pull the trigger on a direct listing on the London Stock Exchange, 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. Wise plans to establish a customer shareholder programme, OwnWise, which will reward customers joining as shareholders after admission to support its long-term mission. OwnWise, open for pre-applications from UK eligible customers today, provides participants with the chance to receive bonus shares in Wise, representing 5% of the value of the shares they buy and hold for at least 12 months (based on market value at the time of purchase) up to a cap of £100, amongst other perks. All existing investors, including the company’s team of current and previous Wisers (employees) who hold options and shares, will be offered time-limited enhanced voting shares to support Wise’s focus on its mission as it transitions to being a listed company. Admission Due TBC

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.

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

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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