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

Smartspace  172.5p  £49.9m (SMRT.L)

The provider of ‘Integrated Space Management Software’ for smart buildings and commercial spaces – ‘visitor reception, desks and meeting rooms’, announced that it continues to make good progress and has signed a number of new distribution agreements to resell its Space Connect workspace management solution. These new partners include: XMA, a global IT solutions business, has signed as a partner; In addition, Insight Direct, a leading provider of computer hardware, software, cloud solutions and IT services to business, government, education and healthcare clients, will resell Space Connect solutions in the UK; Its first partner in Ireland, AVMI, a leading global provider of visual collaboration services, who are part of the international Kinly Group; Two other smaller partners including technology solutions provider, Elevate in New Zealand and audio visual provider, Beyond Networks in Australia.

Checkit 57p  £35.6m (CKT.L)

Kit Kyte (previously Chief Commercial Officer of the Group) as Chief Executive Officer with immediate effect. Kit Kyte brings deep domain and digital transformation experience and during his time as Vice President of Genpact he was responsible for European sales for the Consumer Goods and Life Sciences Division. At Genpact, Kit looked after a client portfolio worth over £100m in Annual Recurring Revenues (“ARR”) and over the last seven years, has personally completed deals with a cumulative value of over £200m. His extensive leadership experience spans a career which has included numerous combat roles as an Army Officer in the Royal Gurkha Rifles, as well as a consistent track record of leadership success in the private sector. Since joining Checkit as Chief Commercial Officer on 1 February 2021, Kit has overseen a significant transformation of the Growth (sales and marketing) Function including a tripling of Checkit Connect’s prospective pipeline. The Company is engaged in providing cloud-based workflow, monitoring and analytics services.

Coro Energy 0.31p  £6.65m (CORO.L)

Coro has signed binding Heads of Terms to acquire rights over a portfolio of 150MW rooftop solar projects in Vietnam from Vinh Phuc Electrical Mechanical Installation Co Ltd, trading as Vinh Phuc Energy JSC (VPE), commencing with a 5MW pilot project. Low cost entry for Coro into the fast growing Vietnamese energy sector as an independent power producer. Coro to acquire 85% equity interest in a newly formed joint venture to be named Coro Renewables Vietnam in exchange for initial funding by Coro of US$500,000 to immediately develop a 5MW pilot rooftop project through to ‘Ready to Build’ status. VPE, a highly regarded local EPC contractor, to transfer their existing 150MW project portfolio into the JV and provide management services in exchange for a 15% carried interest in the JV. Coro to fund the 5MW pilot project through construction once de-risked with the option to fund the broader portfolio of over 150MW solar projects. All rooftop projects benefit from attractive economics and are underpinned by long term “take or pay” Power Purchase Agreements  with creditworthy industrial customers and US Dollar denominated pricing.

Distil 2.35p  £11.8m (DIS.L)

Q1 Trading Update from the owner of premium drinks brands RedLeg Spiced Rum, Blackwoods Gin and Vodka, TRØVE Botanical Vodka, Blavod Black Vodka, Jago’s Cream Liqueur and Diva Vodka. 10% increase in sales revenue and 15% increase in volumes year-on-year for the first quarter of the financial year. Growth in volumes ahead of revenues reflect the partial recovery in Licensed sales for Blavod Black Vodka, mainly through Europe and Duty Free. “We continue to prioritise expanding our geographical footprint through new and existing export markets. Proactive and well-managed internal operations have ensured a smooth Brexit transition with minimal disruption to sales into the EU, and have allowed us to further expand our reach into Europe this quarter.”

Lexington Gold 4.15p  £10.85m (LEX.L)

Assay results received in respect of its recently completed surface exploration sampling programme at the Carolina Belle Project. Oil sampling was conducted on a 50m x 100m grid, covering the entire 391.98 acre Carolina Belle project area. A total of 325 samples were submitted to American Assay Laboratories in Nevada, for processing and fire assay, including sample duplicates, blanks and standards. In addition to the soil sampling, 37 surface rock chip and grab samples were submitted to SGS laboratories in Vancouver, Canada for fire assay. The surface exploration programme is the first known systematic surface sampling programme to be conducted at the Carolina Belle Project and successfully evaluated, delineated and extended the known prospects within the project. The results from the surface exploration programme will further assist with the planning of a drill programme for Carolina Belle. Furthermore, the surface exploration programme identified a new gold anomaly not associated with the known gold mineralisation in the project area. Rock chip and grab samples from the newly identified mineralised zone returned 10 samples with gold grades over 1g/t including 17g/t; 5.1g/t; 3.5g/t, 3.2g/t; 2.7g/t; and 2.2g/t. Soil sampling over the newly identified mineralised area suggests an initial surface gold anomaly footprint of approximately 350m by 250m.

Mobile Streams 0.26p  £6.24m (MOS.L)

The mobile content and data intelligence company has signed a major contract with Tappit Technologies for the use of its Streams data platform. The deal is worth up to £480k over 4 years, with a minimum £10k per month for at least 6 months. It will increase Streams’ revenue to an estimated £35k per month, an increase of approximately 300% since December. Tappit www.tappit.com provides proprietary contactless payment and fan experience ecosystems at sports and entertainment venues for clients in 20 countries. Clients include Kansas City Chiefs, Jacksonville Jaguars, Learfield/IMG, Formula 1, San Antonio Spurs, San Diego Padres, multiple music festivals and W Hotels Group. The company was founded in 2018 and is headquartered in Leeds, with offices in Dubai and Dallas.

Hawkwing SUSPENDED (HNG.L)

HNG has entered into non-legally binding heads of terms for the acquisition of Internet Fusion Group Limited. Internet Fusion Group is an ecommerce aggregator using its technology platform to change the economics of speciality e-retail. The Proposed Acquisition and an associated proposed private fundraise by Hawkwing, details of which will be announced in due course, will help to fund and accelerate Internet Fusion Group’s advanced acquisition pipeline of niche e-retailers. Internet Fusion Group is run by a highly-experienced executive team of lifelong digital retailers, including digital retail expert John Browett (previously CEO of Dunelm Group, Dixons Retail and Tesco.com) (Executive Chairman) and Joe Murray (Chief Executive Officer). Following completion of the Proposed Acquisition, it is intended that the enlarged group will be Chaired by John Browett and the Chief Executive Officer will be Joe Murray. The shares have been suspended.

Quiz 11.52p  £14.32m (QUIZ.L)

QUIZ, the omni-channel fashion brand, announces an update on trading and its cash position for the period between 1 April 2021 to 30 June 2021. Consistent with a number of other omni-channel retail businesses, the COVID-19 pandemic has continued to impact QUIZ’s sales with the closure of stores and concessions for part of the Period and demand for the Group’s trademark dressy and occasion wear continuing to be negatively impacted by the various restrictions on social activities and events. The Group’s total sales in the Period of £17.3m were consistent with the Board’s expectations. This represents a £13.1m increase on the revenues generated during the comparable prior year period from 1 April to 30 June 2020 (“2020”) which was severely impacted by the first wave of the coronavirus pandemic in the UK and Europe. The Group continues to focus on identifying and delivering new opportunities to profitably grow revenues through its own website and store network, as well as by working with new partners appropriate for the QUIZ brand. The Group looks forward to the further relaxation of restrictions on social activities, which the Board believes will result in increased demand QUIZ’s ranges which have traditionally provided popular options for social events and celebrations.

MTI Wireless Edge 77.5p  £68.6m (MWE.L)

MTI’s Antenna Division has been selected to partner with US engineering and technology firm, Craig Technologies and its subsidiary Sidus Space, to develop a new range of space antenna as part of a  funded project. Space Florida entered into an innovative bi-lateral partnership with the Israel Innovation Authority to support joint aerospace research & development projects. Known as the Florida Israel innovation partnership, it requires companies from both countries to participate in every project that is funded. For this project, MTI will receive a grant of US$12k to support the development of the new space antenna. The project has been established to develop an innovative new antenna that can be used for space-ground and space-space applications. 

Voyager 33.5p  £3.1m (AQSE:VOY)

The health and wellness company established to supply high-quality Cannabidiol (CBD) and hemp seed oil products announces that it has been appointed as a preferred supplier to independent pharmacy group Inphaserve. Inphaserve Independent Pharmacy Buying & Support Group serves the needs of more than 30 independent pharmacists in Scotland and England by negotiating supply contracts on their behalf. The agreement will add Voyager to Inphaserve’s list of approved suppliers, allowing the Company to share its marketing materials with Inphaserve’s network.

What’s cooking in the IPO kitchen?

South West Brands the multi-brand cannabidiol consumer goods company  intends to float on the Main Market (Standard). Raising funds to continue to develop its existing portfolio of brand IP and pursue its strategy of adding brand IP assets to the portfolio over the course of the first 24 months following Admission. The Company expects Admission to occur in July 2021. Timing and offer TBA.

GENinCode to join AIM, a UK-incorporated company engaged in the risk assessment, prediction and prevention of cardiovascular disease (CVD), the leading cause of death worldwide accounting for approximately 18m deaths annually. Due 22 July. Offer TBA 

Zenova to join AIM. The Company, is the holder of intellectual property to underpin a suite of fire safety and temperature management products and technology applicable to industrial, commercial and residential markets. Capital to be raised on Admission: £4.5m. Anticipated market capitalisation: £17.74m. Due 22 July.

Microlise to join AIM. Microlise is a leading provider of transport management technology solutions, delivering a globally enabled SaaS platform that digitises the business processes of enterprise organisations running highly complex logistics operations. As at 31 December 2020, the Group had over 400 enterprise customers and over 500,000 vehicle subscriptions.  Due Mid July. Offer TBA.

Lords Group Trading to join AIM. Lords Group Trading plc is a consolidator of specialist merchant businesses across the Southeast and Midlands, adding value to the supply of building materials through product expertise and next day delivery. £30m primary, £22m shareholder sale, Mkt Cap £150m.  Due 20 July.

LendInvest to join AIM. LendInvest plc is the ultimate holding company of LendInvest Secured Income plc, which has debt securities admitted to the Official List of the Financial Conduct Authority and are admitted to trading on the Main Market for listed securities of London Stock Exchange plc. The Offer will raise primary gross proceeds of £40m which will be used to invest in LendInvest’s continued growth, through accelerating its technology roadmap and strategically expanding into new property finance product areas. Due 14 July.

Bridgepoint Group to float on the Premium Segment of the Main Market. Bridgepoint is the leader in middle market investing, with a global reach that leverages its strong pan-European footprint and Bridgepoint’s ability to deploy meaningful amounts of client capital across several well established strategies. Raising £300m. Timing TBA.

HydrogenOne Capital Growth to IPO on the Premium Segment of the Main Market. HGEN is targeting a raise of £250m. First London listed investment fund dedicated to clean hydrogen. Due by the end of July.

Forward Partners Group to join AIM. The Group has made 65 equity investments in early stage, high growth British companies, to build a portfolio that has a net asset value of £103.0m as of 31 March 2021. Offer TBA. Due mid July.

Bradda Head Holdings to join AIM. Bradda Head, previously called Life Science Developments Limited and before that Copper Development Corporation, is a delisted company previously quoted on AIM. In January 2018 Bradda Head acquired Bradda Head Limited, a lithium focused exploration company established to develop a portfolio of USA based lithium projects. Raising £6.2m. Mkt Cap £16.1m. Due 19 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.

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 results of the offer in connection with the IPO to the Premium Segment of the Main Market. Raised £178.4m. 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. Unconditional dealings due 14 July.

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 early July.

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.

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 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.

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