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: HydrogenOne Capital Growth (HGEN.L) has joined the Premium Segment of the Main Market. HGEN is targeting a raise of £250m. First London listed investment fund dedicated to clean hydrogen. The IPO raised gross proceeds of £107m, including a strategic cornerstone investment of £25m by INEOS Energy. 

Leavers:  All Active Asset Capital has left AIM.

Banquet Buffet

Alien Metals 0.85p  £29.11m (UFO.L)

The minerals exploration and development company, would like to advise that the exclusivity agreement between the Company and  the owner of the Elizabeth Hill silver tailings project, located on the Elizabeth Hill Silver Project site, as announced on 10 March 2021, has now come to an end. Bill Brodie Good, CEO & Technical Director of Alien Metals, commented: “With a number of key project developments and priority technical work in the pipeline, we have decided to suspend our current work and review of the Project. We still see potential in the silver tailings, and may revisit the Project in due course when other projects will allow for this.”

Ethernity Networks  40p  £24.6m (ENET.L)

The supplier of data processing offload solutions on programmable FPGA (field programmable gate array) for accelerating telco/cloud networks, announces today that, following successful testing of the Company’s UEP-20 (Universal Edge Platform) product equipped with wireless bonding technology, it has signed a contract with a well-established international wireless connectivity vendor. Ethernity will supply its next-generation UEP-60 product as a system-on-module integrated within the microwave vendor’s enclosure, including customisation of the UEP-60 for usage as a microwave/mmWave Indoor Unit router module with integrated wireless bonding. The product will connect multiple wireless links to provide 20Gbps data transport over wireless connections, with the expectation being that the majority of the product’s deployments will be for 5G distributed unit connectivity with 25G interfaces. The contract includes an initial committed order for $930k with the majority of the revenue accruing in 2022 and with additional orders anticipated thereafter. Based on the customer’s forecast estimates of deployment, this contract could lead to additional annual revenues up to $1.0m in 2022 and further growth subsequently. 

Kibo Energy* 0.22p  £5.4m (KIBO.L)

The multi-asset, African focused energy company, announced that further to its previous announcements in this regard (see RNS’ dated 18 May 2021 and 16 June 2021), it has now satisfied all conditions and completed the agreement with South Africa-based Industrial Green Energy Solutions (Pty) Ltd (IGES) ( https:// www.industrialgreenenergy.com/ ) to jointly develop a portfolio of Waste to Energy projects in South Africa (the Agreement). Kibo and IGES have entered into an amendment (the Amendment) to fast track the implementation of the first project. Completion of the Agreement and Amendment follows the positive findings of an extensive due diligence process. Louis Coetzee, CEO of KIBO said: “We are very pleased with the completion of the Agreement with IGES, and the Amendment provides us with the opportunity to streamline and fast track the further implementation and development of the first project.”

Proton Motor Power  46p  £356m (PPS.L)

Europe’s leading designer, developer and producer of hydrogen fuel cells and electric hybrid systems with a zero-carbon footprint, announces that, further to the Memorandum of Understanding with Electra Commercial Vehicles Limited  announced on 22 June 2021, it has now received an initial order for a fuel cell HyRange® system to be deployed in a functional prototype of a zero emission electric refuse collection truck. The Proton HyRange® system, in combination with a hydrogen storage and battery system, will allow almost continuous daily operation of the truck. As previously announced, the prototype vehicle is expected to be followed by at least five further vehicles under the initial phase of the MoU.

Sareum Holdings* 9.10p  £305.2m (SAR.L)

Sareum Holdings, the specialist drug development company delivering targeted small molecule therapeutics to improve the treatment of cancer and autoimmune diseases, announces that the United States Patent and Trademark Office has issued a Notice of Allowance for a patent in respect of an invention associated with Sareum’s proprietary SDC-1802 TYK2/JAK1 Kinase Inhibitor Programme (the SDC-1802 Programme). The patent (US Patent Application no. 16/343,639) will protect the SDC-1802 molecule and pharmaceutical preparations thereof as a therapeutic to treat cancer selected from pancreatic, colorectal and kidney cancers, melanoma, and B-cell lymphoma by inhibiting TYK2 kinase. This programme is currently in preclinical development and the Company expects that the patent will be granted within 3 months, subject to certain formalities being completed. This news further strengthens the patent protection of Sareum’s portfolio in key markets, potentially putting the company in a stronger position with future licensing partners.

Semper Fortis Esports* 2.725p  £11.3m (AQSE:SEMP)

Maiden results from incorporation on 14th January 2020 to 31st January 2021. During the period Semper finalised the strategy for the business to become a multi-operational esports organisation focusing on gaming technology solutions, brand enhancement and high growth team infrastructures.  As expected, no revenue was generated in the period and a loss before tax of £626,173 was incurred. A significant amount of these costs were Legal and Professional fees in relation to the listing. The unprecedented disruption caused by COVID-19 had minimal effect on the Company during the period. However, it did accelerate the continued growth and popularity of esports and gaming as they provided entertainment and a format to allow young people to socialise. There was an estimated 27.9bn total hours watched across Twitch, YouTube Gaming, and Facebook and Mixer in 2020, up 78.5% from 15.63bn hours in 2019. On 26th April 2021 Semper successfully listed on AQSE raising £2.55m by way of a Placing and Subscription in total of 255,500,000 new Ordinary Shares. The Placing and Subscription were oversubscribed. Post period following a successful 2020/21 season in the Rocket League European Championship Series, Semper’s Top Blokes team finished in 3rd position in its inaugural season with its current squad. Semper has now rebranded the team as “SMPR” bringing the team brand closer to the Company. We believe this new identity will appeal to our growing community and enhance the number of opportunities to bring in sponsors across the organisation. In May, Semper announced that Mr Dominic Calvert-Lewin of Everton Football Club and the national England team and Mr Harry Maguire captain of Manchester United Football Club and part of the England team had been appointed as brand ambassadors to the Company. As part of Semper Fortis Esports, the brand ambassadors will interact with online audiences via digital platforms and bring their wealth of experience in traditional sports to an organisation in esports.

Shepherd Neame 990p  £146m (AQSE:SHEP)

Shepherd Neame, Britain’s Oldest Brewer and owner and operator of 310 high quality pubs in Kent and the South East, today announces an update on trading since the Company last reported on 21 April, following the close of its financial year on 26 June. Since the resumption of trading on 12 April the Company has performed well, generating cash and profits ahead of expectations. Initial outdoors trade from 12 April to 16 May was encouraging, but demand has taken a step up from 17 May when indoors trade was allowed. Overall retail sales have been impacted by the extended closure of 15 Central London pubs. From 19 July, now that restrictions are lifted, the Company has re-opened almost all of these, although we expect their trade levels to remain below prior levels for some time to come. For the 11 weeks from 12 April to 26 June, managed pubs that were open and trading achieved 84% of their 2019 revenue and total retail sales, including those closed pubs in London, were 60% of 2019 levels. For the initial period of outdoor trading between 12 April and 16 May open pubs achieved 62% of 2019 levels and from 17 May, when indoor trading resumed, to the year end, those sites that were open achieved 97% of 2019 levels. Since full restrictions have lifted on 19 July we have seen a modest increase in sales. For the 11 weeks from 12 April to 26 June, the tenanted pubs achieved 77% of their 2019 volume. The Company will inevitably report a loss for the financial year to 26 June, after such lengthy periods of closure, though less now than originally forecast. At the year end, net debt was £89.8m. This has reduced from £92.4m in December 2020. The Company has sufficient and growing liquidity to restore its financial health over the next 12 to 18 months.

Sylvania Platinum  107.5p  £293m (SLP.L)

Sylvania Platinum announced the appointment of Mr. Adrian Reynolds as Independent Non-executive Director, with effect from 1 August 2021. Mr. Reynolds has over 40 years’ experience in the mining and minerals industry commencing his directorship career in 2010 at Morila, a Randgold Resources subsidiary. He is currently a director of Resolute Mining Limited and Mkango Resources Limited and has previously held directorship positions at Somilo SA (a Randgold Resources subsidiary), Aureus Mining Limited, Digby Wells Environmental, Geodrill Limited, Acacia Mining Plc, and GT Gold Corporation.  Mr. Reynolds is a fellow of the Institute of Materials, Minerals and Mining as well as of the Geological Society of South Africa.  He is a registered Professional Natural Scientist and holds a Masters of Science in Geology obtained from Rhodes University in 1979 as well as a Graduate Diploma in Engineering obtained from the University of Witwatersrand in 1987.

Thor Explorations 19.5p  £117.7m (THX.L)

Thor Explorations Ltd. (TSXV / AIM: THX)  announced that  the first gold pour from its Segilola Gold Mine located in Osun State, Nigeria. The pour took place this morning, July 30, 2021. The process plant ramp up will continue over the next six weeks with commercial production targeted for September 2021. At commercial production, the plant will run at a processing rate of 715,000 tonnes per annum, targeting c.85,000 ounces of gold per annum. Segun Lawson, President & CEO, stated: “The first gold pour at Segilola, our first mine and the first commercial gold mine in Nigeria, is a significant achievement for the Company. This mine has been built in line with the budget and largely on schedule through a global pandemic. The Segilola mine is a high-grade, open pit mine that has a projected Life of Mine All In Sustaining Cost of $685 per ounce providing strong cash flows over the life of mine. “I want to take this opportunity to once again commend our team’s commitment and hard work in achieving this milestone, especially given COVID-19 related restrictions. We look forward to hosting an on-site inauguration ceremony of Nigeria’s first commercial gold mine with state and federal authorities in the coming months.”

YouGov 1,276.5p  £1411m (YOU.L)

The international research and data analytics group, today issues its pre-close trading update for the full year ending 31 July 2021. Trading has continued to be resilient, driven by the strong sales pipeline in the second half of the financial year. Consequently, the Group’s full year results are anticipated to be in line with the Board’s expectations. YouGov has seen strong progress in the year on its stated strategy with continued growth in both revenue and profit across all divisions and geographies on an underlying basis1. During the second half, Data Services has turned in another strong performance as client demand for more tactical, fast turnaround projects continued, specifically in the US, UK and Europe.   Both Data Products and Custom Research also performed well on the back of strong momentum in larger and more strategic long-term deals signed during the period. The sales pipeline remains buoyant, giving  confidence for the new financial year. In line with its strategy, YouGov continued to invest for future growth, particularly in our panel’s geographic expansion and in our technology platform as we work towards bringing our entire product suite onto a single platform. The Group also increased its regional capabilities by commencing operations in Brazil and acquiring research and data insights companies in Turkey, Australia and Canada.

What’s cooking in the IPO kitchen?

SpectrumX Holdings, a leader in proprietary formulations of HOCL (Hypochlorous Acid), is expected to list on the London Stock exchange. This Pre-IPO offering outlines opportunities for commercialisation of novel formulations of HOCL in the healthcare and pharmaceuticals markets. SpectrumX is focused on developing an inhaled respiratory treatment with blockbuster potential and has a sanitiser product that looks set to generate significant near-term revenues.

Technology Minerals Limited, a battery metals specialist with a green twist, submitted its listing prospectus to the London Stock Exchange in mid-June. Technology Minerals completed an oversubscribed pre-IPO funding round estimated to have brought in £4m of new investment. The raise will be used to develop battery recycling plants.

Yooma Wellness Inc, a global vertically integrated wellness platform that develops and markets a portfolio of CBD and wellness brands, announces it has secured subscriptions for its latest financing round and will submit an application for the admission to the AQSE Growth Market. Yooma, together with its European deal coordinator, Chrystal Capital Partners LLP, have raised gross proceeds of US$9.7m, or approximately GBP £7.1m, through the placing of 13,504,301 Common Shares, at a price of C$0.90 (£0.5232) per share. Investors have also been granted a half warrant for each Placing Share subscribed for with each Warrant exercisable at a price of C$1.35 (£0.7849) per Common Share, and which expire on the third anniversary of listing on AQSE. In aggregate Yooma has granted investors a total of 6,752,139 Warrants. Expected Admission 10^th August.

Southern Energy Corp, an established oil and gas producer headquartered and incorporated in Alberta, Canada, with oil and gas interests in properties located in the south-eastern United States, primarily in Mississippi, to list on AIM. The Group has controlling operated interests in properties covering approximately 30,000 net acres in the Mississippi Interior Salt Basin (MISB), which include its two principal properties Mechanicsburg and Mount Olive East, and approximately 1,200 net acres in the Black Warrior Basin. The majority of the Company’s leases (97%) contain producing wells and are ‘held by production’, requiring no additional drilling or operations for the Group to maintain its existing interest. The Group currently has a working interest in 239 producing wells. No Capital to be raised on Admission. Anticipated Mkt Cap £18.86m. Expected Admission 10^th August.

Quantum Exponential Limited, a company formed to identify investment opportunities in the quantum technology sector, to apply for admission of its Ordinary Shares to trading on the Aquis Stock Exchange Growth Market. Raising up to £5m targeted for August.

SigmaRoc (on AIM) to complete RTO of Nordkalk Oy Ab, a wholly-owned subsidiary of Rettig Group, for a total Consideration of EUR470m. Nordkalk was established in 1898 as a limestone developer in Finland and since expanded across northern Europe to become the leading limestone company in the area. The Company has raised £260m from the Placing and £1.6m from the Retail Offer. Based on the Placing Price, Mkt Cap on Admission is expected to be approximately £542m. Due Late August.

BiVictriX Therapeutics to join AIM, a UK based drug development company which was incorporated in February 2016 and has developed its proprietary Bi-Cygni® technology. This technology utilises Antibody Drug Conjugates (ADC”s), an existing class of potent biological drugs, for the treatment of various cancers including Acute Myeloid Leukaemia, the first condition which BVX intends to treat.

Central Copper Resources, a company focused on delivering a high grade copper project into production and exploration of assets in the Democratic Republic of the Congo (DRC) and in the Republic of Zambia to join AIM. By 2022, CCR intends to be ready to commence the project financing of its Mbamba Kilenda copper project.  Offer TBA. Due early August.

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.

*A corporate client of Hybridan LLP

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