Hybridan Small Cap Feast: 22/05/2024

* A corporate client of Hybridan LLP

** Arranged by type of listing and date of announcement

*** Alphabetically arranged

**** Potential means Intention to Float (ITF) has been announced, or it is a rumour

Dish of the day

Admissions:   

Delistings: 

What’s baking in the oven? **

Potential****  Initial Public Offerings:

ITF announced:

7th May: Time To ACT plc, an engineering business focused on technology for the energy transition sector, has announced its intention to seek Admission to trading on the Aquis Stock Exchange Growth Market. The Company reports it is revenue generating, profitable in FY23, with £1.9m cash in the bank as at 31st March 2024.  The Company's application to the AQSE Growth Market is not conditional on it raising funds.  The Company is seeking to raise up to £1m to support organic growth and acquisition. Expected AQSE Admission date is 29 May 2024.

15th May: Raspberry Pi announces an intention to float onto the Premium listing segment of the Main Market. Raspberry Pi is a designer and developer of high-performance, low-cost single board computers and compute modules for industrial IoT customers and embedded uses, as well as for enthusiasts and educators, in markets worldwide. The Group's revenue was $140.6m, $187.9m and $265.8m and gross profit was $41.9m, $42.3m and $66.0m in the years ended 31 December 2021, 2022, and 2023, respectively.

 Media speculation:

16th May: Media reports that Advanced Oxygen Therapy Inc (AOTI) is considering raising roughly £39.5m from an IPO on the AIM market. If successful, the flotation is likely to value AOTI at around £160m, the sources added. AOTI indicates that its wound care technology reduces the need for amputations in patients by more than two-thirds.

20th May: Applied Nutrition the producer of sports supplements, is considering a £500m float in London Q4 2024. Applied Nutrition is founded by Tom Ryder, backed by JD Sports, expects to see pre-tax profits of £25m in the 12 months to July 2024, supported by revenues climbing by a third to between £80m and £85m. Applied Nutrition sells protein products, collagen powders and pre-workout supplements, most of which are produced in Liverpool before being stocked in the likes of Asda, Holland & Barret and Tesco. It has also found a footing in the States, with its products sold across some 4,100 Walmart stores. Andy Bell, the Company’s chairman and the co-founder of AJ Bell, is believed to be looking for a valuation of a minimum of £500m. Ryder, who currently owns around 55% of the group, is believed to be wanting to sell down his stake to 30%. JD Sports Fashion PLC (LSE:JD.), which bought a 32% shareholding in 2021 for £25m, is also expected to sell down its stake to around 5% to 10%.

Reverse Takeovers:

13th May: Amur Minerals Corporation (AMC) Follow | AMC announced that the Company has executed a sale and purchase agreement to conditionally acquire the entire issued and to be issued share capital of Extruded Pharmaceuticals, a UK-based drug delivery technology Company focused on the local delivery of chemotherapy drugs, for an aggregate consideration of £5.5m. The reverse takeover is awaiting the approval of Shareholders at a General Meeting on 29 May. Expected first day of trading is 31 May 2024.

Change of Market:

Dual Listing:

 Banquet Buffet***

Crimson Tide 153p £10.1m (TIDE.L) Follow | TIDE

The provider of the mpro5 process management app, announces that Stephen Brewer, Non-Executive Director, has retired from the Board. The Company had prepared for Stephen's retirement with the appointment of James Joyce as a Non-Executive Director ensuring that its Board composition has the relevant balance of industry, financial and regulatory expertise. James will chair the Audit Committee. 

Frenkel Topping Group 51.1p £65.4m (FEN.L) Follow | FEN

The specialist professional and financial services firm operating in the Personal Injury (PI) Clinical Negligence (CN) space, announces that Cardinal Management Limited (Cardinal) has agreed a partnership with a new NHS Major Trauma Centre at Sheffield Children's Hospital. This takes the total number of Major Trauma Centres (MTCs) supported by Cardinal Management to eleven. Frenkel Topping acquired Cardinal in January 2022, enabling the Group to better support the interests of claimants and the work of their professional representatives.

Golden Metal Resources 15.25p £16.3m (GMET.L) Follow | GMET

The strategic development and mineral exploration company focused on Nevada, USA, announces an update for its 100% owned Garfield project located within the prolific Walker Lane Mineral Belt in Nevada, USA.  Recently staked ground covers an additional magnetic geophysical high target which was partially imaged during the previous ground magnetic survey, as well as a total of 25 historical datapoints (from United States Geological Survey and University of Nevada, Reno), including historical mine shafts, prospect pits, and adits, most of which are classified as copper ± gold ± silver ± uranium targets. Field prospecting of the newly acquired ground has confirmed the potential for extensive copper mineralisation across a wide area based on outcropping visual copper mineralisation.

MediaZest* 0.085p £1.4m (MDZ.L) Follow | MDZ

The creative audio-visual solutions provider, announces it has secured a new and repeat contract with a large global automotive client in an EU country. The multi-year contract, signed on 21 May 2024, will provide additional revenues in excess of EUR150k by the end of 2026. This, alongside the other new orders announced in the trading update on 13 May 2024, will provide additional revenues of approximately £500k in the short to medium term. The Company reiterates that first half revenues will show a return to year-on-year growth and that it expects to deliver an improved EBITDA for H1 2024 compared to H1 2023.

Northcoders Group 152.5p £12.2m (CODE.L) Follow | CODE

The UK-based technology training business announces that the Group has marked a new stage of its Business Services division by creating a new brand - COUNTER. After completion of Northcoders' training, COUNTER's candidates will be proficient in modern cloud and software solutions, including AI/ML development, data and cloud engineering. In addition, the Group has appointed the highly successful Technology Consultancy entrepreneur, Tom Walton, as a Strategic Adviser. Tom Walton, the co-founder of the highly successful Infinity Works, the cloud and digital transformation consultancy acquired by Accenture in 2021, now brings his expertise to COUNTER,

Oriole Resources 0.385p £15.0m (ORR.L) Follow | ORR

The exploration company focused on West Africa, announces that it has received US$220k in relation to its interest in the Hasançelebi and Doğala mining projects in Turkey (the Projects') and expects to receive a further US$80,000 later in Q2-2024 (together the 'Total Consideration').  The Total Consideration will clear all outstanding amounts due to Oriole under (1) the exploration agreement signed with its joint venture partner, Bati Toroslar Madencilik Sanayi ve Ticaret Ltd in 2019, which included a resource-linked success-based payment; (2) Royalty Sale Agreement signed with Bati Toroslar in 2020. The outstanding amounts under the two agreements had no carrying value in the financial statements of the Company.  The proceeds will primarily be used to fund further exploration work in Cameroon.

Polarean Imaging  1.175p £2.5m (POLX.L) Follow | POLX

The commercial-stage medical device leader in advanced Magnetic Resonance Imaging of lung function announces that a placing and subscription has raised gross proceeds of US$10m at a price of 1 penny, a discount of approximately 73% to the closing price on 20 May. NUKEM, a global supplier of Xenon-129 and 10.4% owner of the Company's existing share capital, subscribed US$2.5m for new shares. Bracco, the diagnostic imaging provider and 7.6% owner of the Company's existing share capital, made an investment of US$2m. Certain Directors and Management of the Company subscribed for a total investment of approximately US$321k.

Velocity Composites 40p £21.4m (VEL.L) Follow | VEL

The supplier of advanced composite material kits to the aerospace market, announces a trading update for the six months ended 30 April 2024 (H1 FY24).  Trading in H1 FY24 has continued to be strong, and in line with management forecasts. The Company expects to report H1 FY24 revenue of £10.7m (H1 23: £7.0m) and an EBITDA loss of £0.2m (H1 FY23: loss of £0.9m). Cash at bank as at 30 April 2024 was £1.8m (H1 FY23: £1.2m) and net cash of £0.6m (H1 FY23: net debt of £1.8m). The guidance for FY24 remains unchanged with H2 revenue growing through inflationary price rises and production rates increasing. As previously stated, the Company expects to be profitable and cash generative in H2 FY24.

Volvere plc £14.75 £33.2m (VLE.L) Follow | VLE

The growth and turnaround investment company announces its audited results for the year ended 31 December 2023. Revenue was £43.0m, up 13% (FY22: £38.0m) and profit after tax was £2.73m (FY22: a loss of £0.06m). Consolidated net assets per share (excluding non-controlling interest) was £14.83 as at 31 December 2023 (compared to £13.90 as at 31 December 2022).  Cash and available-for-sale investments totalled £23.74m as at 31 December 2023, compared to £20.79m  as at 31 December 2022.

Zenova Group  2.1p £2.9m (ZED.L) ZED

The innovative fire suppression and interdiction solutions Company, announces that it has secured its first order to two hospitals in the Epsom and St Helier Trust Hospital group in Surrey. As of this writing, the Company has already delivered a small batch of FX500 units for use in sensitive areas of the hospitals. This breakthrough order comes as a result of the hospital decision to deploy the FX500 to protect against lithium-ion battery fires in critical care theatres. Coincidentally, Zenova, alongside its sub-distributor, Holistium Ltd have been appointed permanent, official suppliers to the NHS, one of the first for any specialist extinguisher producer.

Status of this Note and Disclaimer

This document has been issued to you 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).

This document should not be relied upon as being an independent or impartial view of the subject matter. The individuals who prepared this document may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.

In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii)  persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority's Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as "relevant persons"). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority's Conduct of Business Sourcebook.

Neither this document nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.

Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.

This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.

Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.