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.

Dish of the day

Deliveroo (ROO.L) offer price announced for admission of the Company’s Shares to the standard listing segment of the Official List of the FCA and to trading on the main market of the London Stock Exchange. Deliveroo  works with over 115,000 best loved restaurants, takeaways and grocery stores globally and provide work to over 100,000 riders across 800 locations in 12 markets, serving 6m customers globally. The price Offer has been set at the lower of the range £3.90 to £4.60 per Share, implying an estimated market capitalization at Admission of between £7.6bn. Raising c. £1bn. 

Parsley Box (MEAL.L), the direct to consumer provider of ready meals to the 60+ demographic, has joined AIM.  Parsley Box provides ready meals, which are not required to be stored in a fridge or freezer, have a shelf life of up to six months and are cooked in minutes.  The company reported revenue of £24.4m for the financial year ended 31 December 2020 (unaudited).  Raised gross proceeds of £5 million for the Company and £12 million for selling shareholders. At the placing price of 200p, the Company’s market capitalisation is approximately £83.8 million.

Off the menu

No Leavers Today

Banquet Buffet

Symphony Environmental Technologies* 18.5p  £32.7m (SYM.L)

The global specialists in supplying and developing technologies that make plastic and rubber products “smarter, safer and sustainable”, announced its preliminary results for the year ended 31 December 2020.  19% increase in Group revenue to £9.77 million (2019: £8.22 million). Further revenues of £0.70 million missed the year end cut-off due to Far East shipping congestion. Otherwise, Group revenue would have exceeded £10.5 million, an increase of 28% on 2019. · Reported loss before tax £0.44 million (2019: £0.70 million)

On current trading and the outlook Symphony reported that whilst  January and February are traditionally low volume months, the year has started well with revenues, excluding the £0.70 million which missed the 2020 year-end cut-off due to Far East shipping congestion, up by 16% compared to the start of 2020.  Customer-led trials for FDA-approved d2p masterbatch for use in bread packaging are expected to complete in the coming months and which may result in long term material commercial sales later this year. 

Symphony is encouraged by the potential for increasingly positive regulatory environments for d2w oxo-BIOdegradable technology and also by the commercial framework that is being created for our d2p “designed-to-protect” technologies and finished goods (PPE). The commercial team is extremely busy and due to strong interest in our technologies, they are focusing on a number of major markets, where sales visibility, potentially high sales volumes, and short-term delivery prospects are strong. With a strong pipeline, and targeted investment levels in commercialising all of our main product areas, Symphony looks forward with confidence to continued growth in 2021.

NetScientific 56p  £8.4m (NSCI.L)

The international life sciences and sustainability, technology investment and commercialisation group, announces its preliminary results for the year ended 31 December 2020. Highlights:

· The share price has increased from the low point of 12.5p in early 2020 to the year’s average of c. 55p. · Loss after tax reduced to £2.3 million (2019: loss £4.9 million).

· Increase in Board estimate of “fair value” of direct holdings by c. 80% from £11.8m to £21.2m, with further growth anticipated.

· Completed a £2.3m placing and a 10-1 share consolidation.· Consolidated cash and cash equivalents of £1.6 million (2019: £3.5 million).

· Acquisition and integration of EMV Capital, which: o  increased Capital Under Advisory from nil to £14.6m o  enlarged total Group portfolio from 8 to 17 companies o  enhanced deal execution capacity and revenues.

· Acquisition of the minority interest in ProAxsis and now, as a 100% owned subsidiary, the business has been rejuvenated and is set for commercial expansion.

· Maintaining NetScientific’s position in NASDAQ-listed PDS Biotech through a c.£1.0m investment in two placements, which are already showing healthy returns.

· Restructured Board with Dr Ilian Iliev becoming CEO and John Clarkson becoming Executive Chairman.

Oxford BioDynamics 98.25p  £90.9m (OBD.L)

Oxford BioDynamics signs supply and resale agreement with Agilent Technologies,
and launches EpiSwitch® Explorer Array Kit for R&D use.

· Agilent Technologies to manufacture custom microarray based on OBD’s proprietary probe sets for EpiSwitch® Explorer Array Kit · First commercial microarray kit available for high-resolution 3D genome profiling and biomarker discovery.

· Kit accompanied by EpiSwitch® Data Portal to enable powerful, intuitive analytics of research data and access to 3D genome knowledgebase · Launch of the EpiSwitch® Explorer Array Kit expands academic and clinical researcher access to OBD’s EpiSwitch® technology platform following the launch of its EpiSwitch®CST (COVID-19 Severity Test).

Amryt Pharma 206p  £369.5m (AMYT.L)

The commercial-stage biopharmaceutical company dedicated to acquiring, developing and commercialising novel treatments for rare diseases, today announces the completion of the rolling submission of a New Drug Application (NDA) to the U.S. Food and Drugs Administration (FDA) for Oleogel-S10 for the potential treatment of cutaneous manifestations of Junctional and Dystrophic Epidermolysis Bullosa (EB).  EB is a rare and distressing genetic skin disorder affecting young children and adults for which there is currently no approved treatment.  

The NDA submission includes a request for Priority Review which can expedite the review process to six months following acceptance of the NDA submission. Previously Oleogel-S10 has been granted Orphan, Fast Track and Pediatric Rare Disease designation by the FDA.  Based on FDA timelines, Amryt expects to receive notification if Priority Review has been granted and if the NDA has been accepted for filing in Q2 2021.

Touchstone Exploration 90.5p  £189.5m (TXP.L)

Update regarding exploration operations on the Ortoire block, onshore Trinidad and Tobago (Touchstone 80% working interest operator, Heritage Petroleum Company Limited 20% working interest).

· Completed and tested the third interval at Chinook-1 encountering 35 degree API gravity crude oil; further evaluation is required to determine commerciality.

· All three Herrera thrust sheets in Chinook-1 encountered light oil indicating the structure is predominantly oil charged.

· Chinook-1 will be placed on pump for an extended production test to evaluate the reservoir and guide future development.

· The service rig is on location at Cascadura Deep-1 to complete the lowermost gas zone in the Herrera overthrust sheet, which is scheduled to be perforated within a few days.

Xtract Resources 6p  £44.6m (XTR.L)

Update on exploration work at the Racecourse Mineral Resource on the Bushranger copper-gold exploration project, located in the Lachlan Fold Belt  of New South Wales, Australia. 

· Following the initial positive results of the Phase One drilling programme, a geophysical crew has been mobilised to the Racecourse site to commence a deep penetrating Induced Polarisation (IP) survey

· The survey will track extensions of the Racecourse deposit potentially beyond 1,000m depth down plunge and along strike where little historic drilling has been completed

· The information obtained will assist in planning a Phase Two drilling programme to further extend the mineral resource towards the target of 2Mt of contained copper equivalent

· Drilling on the final hole (BRDD-21-006) of the Phase One drilling programme at Racecourse is continuing and further news will be reported when the hole is completed

Tower Resources 0.315p  £5.45m (TRP.L)

Update regarding planned operations on the Thali license (the “PSC”) in Cameroon held by its subsidiary Tower Resources Cameroon SA (TRCSA), and the NJOM-3 well.

The Government of the Republic of Cameroon has notified TRCSA that the President of the Republic has approved a further extension of the First Exploration Period of the PSC, and the Company is now awaiting a formal confirmation from the Minister of Mines, Industry and Technological Development of the details of the extension. As previously announced, the Company declared Force Majeure in March 2020 in respect of the First Exploration Period of the PSC, in light of the restrictions required to combat the Covid-19 pandemic.

The logistics involved in coordinating personnel and equipment from multiple service providers and locations (as required for an appraisal well with extensive testing) remain challenging, but the Company has a plan to complete drilling of the NJOM-3 well safely in the present circumstances. The Company intends to finalise a schedule with the multiple service companies involved, although this still depends on pandemic developments and the individual service companies’ circumstances.

President Energy 2.2p  £44.7m (PPC.L)

The energy company with a diverse portfolio of production and exploration assets focused primarily in South America, provides an operational update.

· New well LB-1002, Las Bases field, Rio Negro, Argentina projected to spud later today in line with expectations. · All previously announced drilling schedules in Rio Negro are on track. · The new oil treatment plant due to start operations on schedule by end of June and is on budget. · In Salta, Argentina, advanced discussions are in progress re commissioning the 3D seismic for Canada Grande and Puesto Guardian with green lighting projected by end April

· Salta drilling discussions and preparations ongoing. Still projected to commence work during H2 2021.· Paraguay farm out discussions intensify and is on last leg, with advanced discussions ongoing with the contemplated farminee on well locations, timing and logistics. Signing now projected by both parties at or around end April

· Atome multiple project streams in process at varying degrees of maturity

Phoenix Copper 34.5p  £40.1m (PXC.L)

The North American focused base and precious metals emerging producer and exploration company, announced that Magee Geophysical Services  of Reno, Nevada, has been appointed to conduct geophysical surveys at the Company’s Red Star silver-lead project and Navarre Creek gold project. These surveys will subsequently be processed and analysed to enable the exploration team to refine future targets for drilling and other exploration data.  

Scotgold Resources 73.5p  £39.75m (SGZ.L)

Scotgold has raised £1.5 million before expenses by way of a placing of 2,142,857  depositary interests of no par value in the Company  at a price of 70p per New Ordinary Share.  The proceeds of the Placing will be used for working capital through the current production ramp up period at the Cononish Gold & Silver Mine.

What’s cooking in the IPO kitchen?

Media reports suggest the UK DNA sequencing technology specialist, Oxford Nanopore is preparing a London float but disclosed no further details.  The Company expects that the IPO would occur in the second half of 2021. IP Group, which has a 15% stake in Oxford Nanopore, currently values Oxford Nanopore at £2.3bn but analysts also suggest a valuation above £4bn at its next funding event.

Thor Explorations (TSXV:THX) seeking a secondary listing on AIM. The Company is targeting Admission during Q2 2021.   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.”

MAST Energy Developments (MED) is to IPO on the Standard List on 14th April 2021 under the ticker MAST.  The company has raised £5m giving a market capitalisation on listing of c. £23m.  MED is currently a 100% subsidiary company of AIM quoted, Kibo Energy*.   MED was established to acquire and develop a portfolio of flexible power plants in the UK and become a multi-asset operator in the rapidly growing Reserve Power market.

PensionBee has confirmed its intention to float on the High Growth Segment  of the Main Market of LSE.  The online pension provider had approximately 130,000 Active Customers and £1.5bn of assets under administration, in each case as at 28 February 2021.  The Offer will comprise new Shares raising gross proceeds of approximately £55m and existing Shares to be sold by certain existing small minority  shareholders of up to £5m. None of the founders, directors or members of senior management of PensionBee are selling any existing Shares. Expected in April.  

Cornerstone FS to join AIM, an SME focused, cloud-based provider of international payment, currency risk management and electronic account services focused on removing the complexity of international payments for customers. Raising £2.2m. Mkt Cap £12.3m. Due 6 April.  

Imperial X (AQSE:IMPP) to join the Main Market (standard). It is also proposed that on Admission to the Official List, the Company will change its name to Cloudbreak Discovery Plc.  With effect from Admission, Imperial X will hold equity positions and royalties in a variety of projects in the natural resources sector across multiple jurisdictions, primarily in the Americas and Africa. The Company is proposing to raise up to £1.5m by way of placing of new Ordinary Shares to support further prospect acquisitions. Current Mkt cap £4.7m Expected April 2021.

Proposed move to AIM from the main market (standard)  by Emmerson (EML.L)  to provide Emmerson with access to a market and environment which is more suited, in the Board’s view, to the Company’s current size and strategy ahead of pivotal period for the Company with the commencement of mine construction at the Khemisset Potash Project expected by end of 2021. Follows recent award of Mining Licence granting Emmerson exclusive right to develop and mine the potash deposit and £5.5m raise to fund ongoing project development work.  

NextEnergy Renewables  to launch an IPO on the Main Market. NREN is a differentiated renewables investment Company that aims to capture the most attractive private renewables and energy transition infrastructure investment opportunities globally.  Targeting a £300m raise.   NREN is targeting total returns of 9-11 per cent. per annum (net of all fees and expenses but including the Target Dividend and capital appreciation) . The Company’s target dividend yield for the first full financial year to 31 December 2022 is 5.5 pence. Due Early March 2021.

Digital 9 Infrastructure launch an initial public offering  on the Specialist Fund Segment of the Main Market of the London Stock Exchange, by way of an initial placing and offer for subscription for a target issue £400m. Digital 9 Infrastructure plc is a newly established, externally managed investment trust. The Company will invest in a range of digital infrastructure assets which deliver a reliable, functioning internet. The IPO Prospectus is expected to be  published in March 2021.

Fix Price announces its intention to float on the Main Market of the London Stock Exchange.  Fix Price is one of the leading variety value retailers globally and the largest in Russia, with more than 4,200 stores. Fix Price has revenues of RUB 190.1bn, RUB 142.9bn and RUB 108.7bn for 2020, 2019 and 2018, respectively. Adjusted EBITDA for the same years was RUB 36.8bn, RUB 27.2bn and RUB 14.2bn, respectively. The Offer would consist of an offering of GDRs by certain existing shareholders of the Company.

Great Point Entertainment Income Trust PLC announced its prospectus has been approved by the FCA.  Great Point Entertainment Income Trust PLC is a newly established, externally managed closed-ended investment company. The Company will provide project finance to content makers and commissioners in the global television and film production industry via senior loans secured against pre-sold intellectual property (IP) rights. GPEIT’s investment objective is to provide Shareholders with dividend income and modest capital growth through exposure to media content finance.

*A corporate client of Hybridan LLP

This document has been prepared by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific entity and is not a personal recommendation to anyone. Recipients should make their own investment decisions based upon their own financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor. The information contained in this document is based on materials and sources that are believed to be reliable; however, they have not been independently verified and are not guaranteed as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information in this document nor should it be relied upon as such. Any and all opinions expressed are current opinions as of the date appearing on this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document. This document is sent to you as market commentary only. As market commentary this document does not constitute any of (i) investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments for the purposes of the UK retained version of section B of annex I to Directive 2014/65/EU (“MIFID II Directive”); or (ii) investment research as defined in the UK retained version of article 36(1) of Commission Delegated Regulation 2017/565/EU made pursuant to the MIFID II Directive; or (iii) non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook).


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