Hybridan Small Cap Feast

12 mins. to read
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

Samarkand Group Limited (AQSE:SMK), the cross-border eCommerce technology and retail group opening up the world’s largest market for brands and retailers, has joined the Apex Segment of the Aquis Stock Exchange Growth Market. Raised £17m at 115p. Market cap of £59.4m. March 2020 YE showed £6.8m revs and £1.1m EBITDA loss. 8 month period ending November 2020 showed £16m revs and £2.4m EBITDA profit.

Roquefort Investments (ROQ.L) an investment company established to acquire businesses focused on early stage opportunities in the medical biotechnology sector, announced the admission of the Company’s entire issued share capital to the Official List of the UKLA by way of a ‎standard listing. The Company also completed a placing ‎of 20,000,000 shares at 5p per share raising a gross amount of £1m.

Off the menu

Hunters Property has left AIM

What’s cooking in the IPO kitchen?

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 18 Mar.

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 £1.5 million by way of placing of new Ordinary Shares to support further prospect acquisitions. Current Mkt cap £4.7m. Expected April 2021.

Parsley Box, the direct to consumer provider of ready meals to the 60+ demographic, recently announced its AIM IPO plans. 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). Deal details TBC and admission is expected to occur late March/ early April 2021.

ActiveOps, a UK-based leader in Management Process Automation (MPA), providing a SaaS platform to large enterprises with complex and often global back-offices is planning to join AIM. Details TBA. Due late March.

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. Subject to EGM on 21st March.

Global review platform, Trustpilot has announced its intention to float on the premium list of the LSE. Trustpilot provides an open platform, which creates a place where businesses and consumers can gain actionable insights and collaborate. Consumers are able to share feedback, at any time, about any business with a website and review feedback left by other consumers. Total revenues were US$64.3m, US$81.9m and US$102.0m for the years ended 31 December 2018, 2019 and 2020, respectively. The Offer would comprise new Shares to be issued by the Company (raising gross proceeds of approximately US$50m to support Trustpilot’s growth plans and repay indebtedness) and an offer of existing Shares to be sold by certain existing shareholders, directors and employees. Timing TBC.

Media reports video game firm Catalis is mulling a London IPO, just over a year after being bought by a private equity firm. Catalis’ accounts are reportedly expected to show revenues increasing to £60m in 2020, up from £43m, with adjusted earnings of £15m. Deal details and timing TBC.

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.

Deliveroo is considering applying 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.

Banquet Buffet

Evgen Pharma 8.05p £22.13m (EVG.L)

The clinical stage drug development company focused on the treatment of cancer, inflammation and acute respiratory distress syndrome, announces that Helen Kuhlman PhD will be joining the Company as Chief Business Officer effective from 1 April 2021.

Dr Kuhlman has over 20 years’ experience in government funding and equity investment together with scientific and business roles in public and private R&D-based biotechnology companies. She joins Evgen from the Development Bank of Wales where she was responsible for equity investment in technology companies and for managing investments in the bank’s portfolio companies. Prior to that Helen was Vice-President of Corporate Development at Chronos Therapeutics Ltd and was previously at Innovate UK where she created and delivered the £180m Biomedical Catalyst competitive grant scheme funded by the UK government. Dr Kuhlman holds a PhD in physiology and pharmacology from the University of Leicester, UK.

Botswana Diamonds 0.9p £7m (BOD.L)

Eleven diamonds and abundant kimberlitic indicators were recovered from drill samples at the recently discovered River Kimberlite pipe at Thorny River in the Limpopo Province of South Africa.

Highlights of the recovered kimberlitic indicators:

  • Eleven diamonds of good colour and clarity
  • Abundant indicators including G10, G9 and eclogitic garnets
  • Chromites and chromium diopsides

Shield Therapeutics 32.5p £70.15m (STX.L)

The commercial stage pharmaceutical company with a focus on addressing iron deficiency with its lead product Feraccru®/ Accrufer® (ferric maltol), announces that Hans-Peter Rudolf is joining Shield’s Senior Executive Team as Chief Financial Officer with immediate effect.

Hans-Peter is a Swiss national with extensive international experience, particularly in the US. Starting his studies at the University of Zurich and graduating from Cleveland State University, Ohio, Hans-Peter is a US Certified Public Accountant (CPA). In 2011 Hans-Peter left public practice to become Head of Group Accounting at COFRA Group, a privately held Swiss conglomerate with activities in retail, real estate and investment, employing over 50,000 people worldwide. In 2017, he was appointed as Chief Financial Officer at Vicarius Pharma, a start-up company offering research-driven pharma and biotech companies a platform to build a dedicated European commercial organisation to market and sell their assets through long-term license and partnership agreements.

Surgical Innovations 2.8p £26m (SUN.L)

The designer, manufacturer and distributor of innovative medical technology for minimally invasive surgery announces that its wholly owned subsidiary, Elemental Healthcare Ltd has signed an additional three-year exclusive GB distribution agreement with Microline Surgical Inc. for the distribution in Great Britain of Microline instruments.

Based near Boston, MA, U.S.A. Microline designs, manufactures and distributes high quality instruments aimed at the MIS market. Its portfolio of products is complementary to those offered by SI with a focus on the Resposable ™ ethos of cost and sustainability. Elemental has a long established relationship with Microline, and recently announced a new 5-year USA distribution agreement with Microline for the Company’s range of YelloPort+PlusTM and YelloPort EliteTM Access Devices.

Knights Group 446.5p £368m (KGH.L)

The UK’s fastest growing legal and professional services business, has agreed to acquire Mundays LLP, an independent commercial law firm based in Surrey. In its unaudited accounts for the year ending 31 July 2020, Mundays reported revenue of £7.9m and it is budgeting revenue of £6.9m in the year to 31 July 2021, with a corporatised PBT margin of c.6% in both years. Following full integration and realisation of all synergies, the Board expects Mundays to contribute a PBT margin of circa 18% which, combined with a typical level of revenue churn, means the acquisition is expected to be immediately earnings enhancing.

Under the terms of the acquisition, Knights will acquire Mundays from its six existing equity partners on a debt free, cash free basis for a total consideration of £5.3m, subject to working capital adjustments at the time of completion.

Cambria Automobiles 73.5p £73.5m (CAMB.L)

Cambria has consented to Mark Lavery, James Mullins and Tim Duckers (the Management Team) exploring the possible acquisition of the entire issued, and to be issued, share capital of the Company, not already owned by them at a price of 80 pence in cash per Cambria share.

There can be no certainty that an offer will be made. A further announcement will be made when appropriate.

Faron Pharma 362.5p £183m (FARN.L)

Bexmarilimab (Clevegen) development update

  • Significant survival benefit observed in patients responding to bexmarilimab treatment with risk of death reduced by 88%
  • Gastric cancer becomes sixth tumour cohort to show early signs of clinical efficacy
  • Data monitoring committee recommends dose escalation expansion in all six cohort types besides ongoing colorectal cancer

Minoan Group 1.15p £5.9m (MIN.L)

Despite the heavy impact of Covid-19 on the tourism sector, the Board of Minoan has been encouraged by an upturn in investor sentiment towards Greece and its real estate and tourism industries. The importance of tourism to the Greek economy cannot be overstated and this, plus investor sentiment, are being reflected not only in on-going Greek Government initiatives but also by the interest being shown in the Company’s Project in Crete from an ever increasing number of potential commercial partners. The Company expects to be able to progress with one or more of these once discussions with all interested parties have been concluded.

The Company has raised £187k at 1.1p.

Omega Diagnostics 89p £162.2m (ODX.L)

The medical diagnostics company focused on CD4, infectious diseases and food intolerance, announces that it has CE-Marked Mologic Ltd’s lateral flow antigen test for COVID-19, to be sold for professional-use under Omega’s VISITECT® brand. The test will provide healthcare professionals with an accurate rapid test for the detection of the nucleoprotein of the SARS-CoV-2 virus in respiratory swabs.

Colin King, CEO of Omega, commented: “This is an exciting and important next step in our COVID strategy as we now have the ability to supply both antigen and antibody lateral flow tests not only to the UK Government but also to our commercial partners. Having both tests available and having built our production capacity allows us to adjust our capacity to meet the demands of the pandemic. We look forward with confidence that the coming year ahead will be truly transformational for Omega.”

Induction Healthcare 107.5p £45.2m (INHC.L)

The virtual care platform driving digital transformation of healthcare systems worldwide, announces that its market-leading patient portal, Induction Zesty, has surpassed 200,000 patient users in the UK.

In March 2020, registered users of Induction Zesty had more than doubled from 32,000 to 76,000 in one year. In the subsequent 12 months, Induction Zesty saw exponential growth to reach 202,000 users today. With more than 700 new patient registrations daily , this number will continue its climb unabated, especially as hospital activity returns to pre-pandemic levels.

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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