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: No Joiners Today.

Leavers: Motif Bio has left AIM.

Banquet Buffet

Access Intelligence 134.5p  £108m (ACC.L)

The technology innovator delivering Software-as-a-Service (SaaS) solutions for the global marketing and communications industries announced the  proposed acquisition of Isentia, a media intelligence and award winning insights company headquartered in Sydney, Australia and listed on the ASX for AUD$35.6m (£19.4m). Intention to repay all of Isentia’s existing indebtedness on completion of the Acquisition (estimated to be c.AUD$45m as at the completion date). Successful Placing and Subscription to raise gross proceeds of £50.0m, the proceeds of which will be used to pay the consideration to Isentia’s shareholders under the Scheme of Arrangement and the repayment of Isentia’s indebtedness. The Company is also announcing an offer via PrimaryBid of up to £2.0m to facilitate retail participation. Isentia operates across eight geographical markets across Australia, New Zealand and South-East Asia working with c.2,400 customers. The Acquisition of Isentia will enable the Company to benefit from greater scale, a superior product offering and greater geographic reach. The Board of Access Intelligence believe that the Acquisition will create possible revenue synergies as the Company leverages the cross-sell and up-sell of products and new sales across its enlarged customer base. In addition, the Board believes it can realise certain cost synergies which total approximately AUD$1.5m which are expected to be delivered within the first six months of the Acquisition completing. The Directors believe that the Acquisition will be earnings enhancing in the first full year following completion of the Acquisition. Katie Puris, Managing Director of Global Business Marketing for TikTok, joins the Board as a Non-Executive Director.

Angus Energy  76.5p  £59m (ANGS.L)

Acquisition of Alba Mineral Resources plc’s 5% interest in the Brockham Field. The net consideration after settlement of outstanding amounts and a contribution toward eventual abandonment costs involves a payment by Alba to Angus of £38,400, settled as to £6,4k in cash and £32k by the issue of 12,407,910 shares in Alba at the 10 day VWAP of 0.2579p per share representing approximately 0.20% of the share capital of Alba. George Lucan, Managing Director, comments: “Seismic acquisition at Lidsey is complete and reprocessing of newly acquired and existing lines is underway.  In line with our husbandry of legacy oil assets, this transfer aligns our interest in Lidsey and Brockham fields at 80% with identical partners in each Licence.  It is the Company’s expectation that moderate oil production and the facility of water injection at Brockham, together with 9.7m barrels of Oil In Place at Lidsey, will represent a good value proposition for shareholders, and for possible farminees, once seismic re-interpretation is complete and permissions are in place for a side-track at Lidsey. “

D4t4 Solutions 345p  £138.8m (D4T4.L)

The data solutions provider, is today launching the Celebrus Fraud Data Platform (FDP) to support businesses in protecting their customers in real-time across all digital touchpoints. This is the result of two years’ design and development work and approximately £1.5m of investment by the Group and sees D4t4’s initial launch into the large and growing market of fraud protection software, estimated to be worth currently $18+ bn per annum. Using automated behavioural biometrics to eliminate fraud around the three core fraud use cases of Account Opening, Account Takeover and Payment Processing, FDP is able to identify potentially fraudulent signals in real-time so as to pre-empt occurrence, enabling enterprises to improve their fraud management processes, avoid losses, reduce reputational damage and help with identification of fraudsters even before a fraud has taken place. FDP helps businesses protect their customers through: Behavioural biometrics and analytics which provide seamless detail about users as they navigate digital channels; Insights that signal unusual online interactions in real-time to identify fraud across the customer journey; Integration to existing fraud detection and investigation systems to identify and prevent multiple fraud types; Complete control to quickly adapt to evolving threats.

Eurasia Mining  22.5p  £632.7m (EUA.L)

The palladium, platinum, rhodium, iridium and gold producing company, updated on the Rosgeo JV. As announced via RNS of 26 March 2021, Eurasia signed a binding agreement to create a joint venture with Rosgeo in which Eurasia will own a 75% equity stake in nine PGM and battery metals assets (four of which are post Russian Feasibility Study with state approved reserves) with a total of 104.6Moz of Platinum equivalent Russian Code reserves and resources in the immediate vicinity of the Company’s Monchetundra Project in the Kola Peninsula. The Company announces that the first joint venture company, Monchegorskoe LLC, was created to hold the licence for the Nyud open pit PGM and battery metals deposit. Eurasia’s 100% subsidiary Yuksporskaya Mining Company / Yuksporskaya Gornaya Kompaniya  has signed a notarised agreement with Rosgeo Group company pursuant to which YGK will become a 75% shareholder in Monchegorskoe LLC after the licence for Nyud is transferred from Rosgeo to Monchegorskoe LLC. Euraisa, through YGK, will also have a right to acquire Rosego’s 25% shareholding in Monchegorskoe LLC upon the completion of a JORC Code compliant competent persons report on Nyud.

K3 Capital Group 372p  £256m (K3C.L)

The multi-disciplinary professional services firm providing advisory services to SMEs, provided a pre-close trading update for the financial year ended 31 May 2021. The Group delivered an exceptionally strong performance, having successfully grown revenues and profits across all divisions. As a result, the Group expects to report revenues for the full year to 31 May 2021 of approximately £46.0m and adjusted EBITDA of not less than £14.25m. These results exceed the full year guidance provided by the Company in the trading updates released on 14 April 2021 and 4 March 2021, with adjusted EBITDA significantly ahead of current consensus market expectations. The M&A division had a strong year with material organic growth delivering revenue and adjusted EBITDA significantly ahead of expectations and delivering a high profit margin contribution. Alongside the transformational acquisitions of Quantuma and randd and in line with the Group’s stated strategy, three complementary bolt-on acquisitions were also completed during the period and have all contributed to growth and provided further diversification of revenues.  These new revenue lines together with the new tax advisory and debt advisory offerings and the newly established Market Mapping joint venture all provide additional layers of diversification and will financially contribute to the Group in FY22 and beyond.

MobilityOne 38.5p  £40.9m (MBO.L)

The e-commerce infrastructure payment solutions and platform provider, announces an update on trading prior to release of its audited results for the financial year ended 31 December 2020. Unaudited revenue increased 45.6% to £246.7m (2019: £169.4m) mainly due to higher sales recorded in the Group’s mobile phone prepaid airtime reload and bill payment business in Malaysia; Gross profit of £12.96m (2019: £10.77m). Profit before tax of £2.26m (2019: £1.08m); Profit after tax of £1.61m (2019: £1.87m, included gain on disposal of a subsidiary of £1.11m); Cash and cash equivalents as at 31 December 2020 of £4.42m (31 December 2019: £4.42m). The Directors remain positive on the prospects of the Group for 2021 as the COVID-19 pandemic has not negatively affected the Group’s financial performance and the existing businesses in Malaysia are expected to grow further. The Company has been granted an extension to publish its audited results for the financial year ended 31 December 2020 by no later than 30 September 2021.

Norman Broadbent 8.5p  £4.7m (NBB.L)

The Professional Services firm offering a diversified portfolio of integrated Leadership Acquisition & Advisory Services (Board & Leadership Search, Senior Interim Management, Research & Insight, Leadership Consulting & Assessment, and executive level Talent Solutions), announced that Peter Searle has been appointed to its Board as Executive Chairman. NBB’s current Non-Executive Chairman Alan Howarth, has informed the Board of his intention to retire from the Board. Peter has over 30 years’ experience in the recruitment sector. In 1999, he was appointed Group Managing Director at Adecco and was responsible for the European and Asia Pacific offices of the professional services companies. After a global reorganisation in 2005, Peter became the Chief Executive of United Kingdom and Ireland at Adecco with additional responsibility for South Africa, India, Australia and New Zealand. In 2006, Peter left to join Spring Group as CEO. He returned in 2009 when Adecco purchased Spring Group and was appointed to the Group Executive Committee. Peter was most recently the CEO of Airswift from 2016 to 2018 and Executive Chairman from 2018 to May 2021. In addition to a number of NED positions, he is Chairman of the Hiring Hub.  Peter has an honours degree in Business and a Post Grad Diploma in Marketing.

SigmaRoc 97.5p  £273m (SRC.L)

SigmaRoc has signed a joint venture agreement with major Calais based high grade limestone and construction materials company,  Carrières du Boulonnais, part of Groupe Carrières du Boulonnais, which has become a 25% shareholder in Granulats du Hainaut, with the aim of expanding GduHinto a Benelux and Northern France wide supplier of limestone products. As a shareholder, CB will assist in the development of GduH from a financial and technical perspective and materially increase GduH’s market presence in these target markets. As a result, it is expected the target footprint for GduH’s activities will reach beyond Belgium and into Northern France. GduH is the Group’s Benelux production and distribution subsidiary and SigmaRoc will continue to wholly own its quarrying assets in Belgium. As part of the Joint Venture agreement, CB has agreed to co-fund the new crushing and screening installations planned to be built by 2024 at GduH’s aggregates operations at Carrières du Hainaut. CB will also lend its vast technical expertise in the sector to optimally set up the new installations and their product offering. As a result, GduH will be able to commence servicing the Benelux and Northern French markets and, following the expiry of its existing agreement to supply LafargeHolcim in 2024, supply over 2m tonnes of virgin construction aggregates  per year, making it one of the largest suppliers in the region.

Tavistock Investment 4.75p  £28.9m (TAVI.L)

Further detail regarding the Company’s strong trading performance during the financial year ended 31 March 2021. The Group’s unaudited accounts for the year ended 31 March 2021 show an EBITDA of approximately £2.77m. This is an increase of 50% (approximately £920k) over the EBITDA reported for the previous year (£1.85m). Since the year end, the Company has acquired the business and assets of Chater Allan Financial Services LLP, an independent advisory business based in Cambridge. The acquisition of this business has added approximately £110m to the Group’s funds under advice and is expected to contribute to the Group’s profitability in the current financial year. Tavistock Investments Plc is a financial services group that has 180 advisers across the UK helping 30,000+ clients look after more than £4bn of investments. The Company was established in 2013.

Tremor IPO 797p  £1085m (TRMR.L)

The global company offering an end to end software advertising platform announced today that it has commenced an initial public offering on the Nasdaq Global Market of 6,768,953 American Depositary Shares (ADSs), representing an aggregate of 13,537,906 ordinary shares. Each ADS represents two ordinary shares of Tremor. The last closing price of Tremor’s ordinary shares on the AIM market of the London Stock Exchange was £7.86 on June 11, 2021. The ADSs are being offered in a registered public offering in the United States. All ADSs to be sold in the Offering will be sold by Tremor.

What’s cooking in the IPO kitchen?

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.

MADE, a digitally native lifestyle brand in home has announced its intention to IPO onto the Premium Listing Segment of the LSE. MADE’s mission is to make high-end designer furniture and homeware products accessible to everyone.  Their gross sales, net revenue and Adjusted EBITDA were £109.5m, £82.4m and £1.8m, respectively, for the three months ended 31 March 2021 and £315m, £247m and (£5.1m), respectively, for the year ended 31 December 2020.  The Offer would comprise a primary offer to raise proceeds to further develop growth in existing markets, improve service through reduction of lead-times offered to customers, scale its homeware range and give the Group increased working capital flexibility. MADE would seek to raise approximately £100m of primary proceeds. Expected June.

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. Admission is expected to occur before the end of June 2021. 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.

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

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).