Small Cap Wrap – Zephyr Energy, SDI Group, Quadrise Fuels and more…

0
10

3 Dec 2020


@HybridanLLP




*A corporate client of Hybridan LLP




Dish of the day


No Joiners Today


Off the menu


No Leavers Today


What’s cooking in the IPO kitchen?


Intuitive Investments Group, a closed-end investment company focussed on the life sciences sector, announces its intention to seek admission the AIM market of the London Stock Exchange plc, and a conditional placing , at a price of 20 pence per share, to raise gross proceeds of GBP7.5 million . . The net proceeds of the Placing will be used by the Company:- to invest in fast growing and / or high potential life sciences businesses, based predominantly in the UK, wider Europe and the US, chosen from an identified pipeline of investment opportunities – investments will be focused on diagnostics and healthcare, medical devices, tools and technologies and bio-therapeutics and pharmaceuticals . The market capitalisation of the Company is expected to be circa GBP7.8 million on Admission. Due 14 Dec.


Schroder BSC Social Impact Trust plc targeting a GBP100m raise. The Company’s investment objective is to be the first London listed investment company to deliver measurable positive social impact as well as long term capital growth and income, through investing in a diversified portfolio of private market impact funds, co-investments alongside impact investors and direct investments in order to gain exposure to private market Social Impact Investments. Due 22 Dec. Official List (premium)


Abingdon Health to list on AIM. Abingdon Health is a lateral flow diagnostics company providing contract service solutions to a global client base in the healthcare sector and other industries . The Company has developed and is manufacturing the AbC-19TM Rapid Test, an antibody test for Covid-19 indicating whether a person is generating IgG antibodies to the spike protein of the SARS-CoV-2 virus. The Company is also working with three customers to transfer their Covid-19 antigen tests to manufacture, and is manufacturing a component of a rapid PCR (polymerase chain reaction) test. Offer TBC. Due early Dec.


Auctus Growth Plc (LON:AUCT) – Reverse acquisition of HeiQ Materials AG. GBP20m placing for the enlarged group plus further secondary placing of GBP40m for selling shareholders. HeiQ creates technologies that add functionality, comfort, hygiene and sustainability to existing apparel, home textiles, technical textiles, medical textiles and devices and functional consumer products. It is anticipated that the funds raised will be used to strengthen the Enlarged Group’s regulatory portfolio, enhance its direct to consumer marketing and build brand equity, expand its geographical footprint, expand its sales channels, upscale the product HeiQ GrapheneX and build a medical business unit in light of the robust growth that HeiQ Viroblock has experienced due to the COVID-19 global pandemic. Anticipated mkt cap GBP141 million. Due 7 Dec. Main Mkt (Standard)


Helium One Global to join AIM. The Company, through its Tanzanian subsidiaries, holds a 100% interest in 18 licences (the Priority Licences) covering an area of 4,512km2 with an Unrisked Prospective Helium Resource (2U) of 138Bcf (SRK 2019). The Company has spent US$8.25m on exploration, assessment and related activity to date and is now drill ready. Capital to be raised on Admission: GBP6million. Anticipated market capitalisation on Admission GBP14.1 million (at the issue price of 2.84p). Due 4 Dec


Downing Renewables & Infrastructure Trust intends to raise up to GBP200 million to target the acquisition of a diversified portfolio of renewable energy and other infrastructure assets and list on the Official List of the Financial Conduct Authority and Main Market of the London Stock Exchange . Due by mid December


Ecofin U.S. Renewables Infrastructure Trust. Initial public offering of up to us$250 million to invest in a diversified portfolio of mixed US renewable energy assets with an attractive long-term income stream. Main market premium. Due 14 Dec


VH Global Sustainable Energy Opportunities plc, a closed-ended investment company focused on making sustainable energy infrastructure investments, today announces intends to launch an initial public offering of shares on the Official List (Premium) of the Financial Conduct Authority and Main Market of the London Stock Exchange. Due by Early Feb 2021


Tirupati Graphite, the fully-integrated, cash generative, specialist graphite and graphene producer with operations in Madagascar and India, announced its potential intention to undertake an initial public offering on the LSE (standard listing). Raising GBP6m. Mkt cap c.GBP33.6m. Due 11 December


Bytes Technology Group one of the UK’s leading software, security and cloud services specialists, announces that the Company intends to publish a Registration Document and is considering proceeding with an initial public offering (Main Mkt Prem). FY20 gross profit of GBP79.2m (+24.5% against FY19) and adjusted operating profit of GBP31.7m (+53.9% against FY19). Highly cash generative with FY20 cash conversion of 125.9% (FY19 cash conversion 139.7%). Bytes due on or around 17 December 2020.


Mailbox REIT PLC , a newly formed single asset company which owns the Mailbox , a large prime office-led mixed use property in Birmingham which has been independently valued at GBP179m, announced its intention to raise up to GBP62.5m. MailBox REIT will apply for the Ordinary Shares be admitted to trading on the IPSX Prime segment of International Property Securities Exchange (IPSX ). Due 14 December.


Umuthi Healthcare Solutions Plc, the technology led healthcare business focused on the distribution of pharmaceuticals and the provision of medical facilities in remote areas, seeking admission to the Standard Listing segment of the Official List. Timing tbc


Kibo Energy PLC, the multi-asset Africa focused energy Company, is seeking admission for its 100% owned UK subsidiary Sloane Developments Ltd , which will be renamed Mast Energy Developments PLC (MED), to the Standard List of the London Stock Exchange plc. The MED business strategy is to acquire and develop a portfolio of flexible small-scale power generation assets, exploiting a growth niche market in the UK for Reserve Power generation to balance out the national grid at critical times. Targeted for Q4 2020.


Banquet Buffet


Sareum Holdings* 1.45p GBP47.4m (LON:SAR)


The specialist drug development company delivering targeted small molecule therapeutics to improve the treatment of cancer and autoimmune diseases, is pleased to announce that, further to the Company’s announcement on 27 October 2020, the Grant Offer Letter from UK Research & Innovation (UKRI) has been received and approved. This confirms Sareum’s successful application for approximately GBP174,000 in grant funding to investigate the therapeutic potential of SDC-1801, its selective, small molecule TYK2/JAK1 kinase inhibitor, in severe-phase Covid-19.


The Grant has been awarded to Sareum through the Innovate UK Sustainable Innovation Fund for projects that address and mitigate the health, social, cultural and environmental impacts of the Covid-19 outbreak. Under the conditions of the Grant, Sareum will contribute an additional c.GBP64,000 in cash as well as commit additional management time to the project, which is expected to take approximately six months to complete.


The aim of Sareum’s Covid-19 research programme is to investigate the effects of SDC-1801 on cytokine signalling after human cells are infected with SARS-CoV-2, to confirm whether an over-active inflammatory response (known as a ‘cytokine storm’) via the Interferon Type 1 pathway can be blocked in this disease. The Company will also investigate whether treatment with SDC-1801 in disease models can re-establish protection against bacterial pneumonia following SARS-CoV-2 infection.


If this research and the ongoing preclinical development of SDC-1801 is successful, and subject to further funding, Sareum would aim to begin a clinical trial of SDC-1801 in severe-phase Covid-19 patients during 2021.




CyanConnode 6p GBP11m (LON:CYAN)


The specialist in Narrowband Radio Frequency (RF) Smart Mesh Networks has appointed Allan Baig as Group Chief Operating Officer and Ratna Garapati as Chief Operating Officer of CyanConnode India, both non-Board appointments.


Allan Baig joined CyanConnode in June 2017 and has thirty years’ experience in management and engineering with leading technology companies. Prior to joining CyanConnode, he held the position of Project Manager at Landis + Gyr and led their UK Smart Meter Implementation Program, (UKSMIP). Allan was responsible for project management across engineering functions, including product development, systems integration, and deployment, predominantly for UKSMIP. Ratna Garapati has over 25 years’ experience in product development and management, IT business operations management and strategic planning and digital transformation. Ratna most recently held the position of Vice President at Trilliant India, where he was responsible for business development, strategy, and operations. His key achievements at Trilliant India includes the winning and implementation of multiple smart grid pilots and actively participating in the implementation of over 5 million Smart Meters, of which 1.3 million have been commissioned.




Good Energy Group 184p GBP30.6m (LON:GOOD)


The 100% renewable electricity supplier and innovative energy services provider welcomes and acknowledges the Competition and Markets Authority (CMA) intention to launch a market study into electric vehicle charging.


Good Energy recognises the importance of the electric vehicle (EV) market as part of the UK’s journey to net zero carbon. Recent Government announcements have highlighted the shift to emission free vehicles as a key component of its Ten-Point plan for a Green Industrial Revolution. Not only will this require significant investment in the sector, but also a fair and competitive market to accelerate and support the mass adoption of EVs by the public and business community.


The electrification of transport is a key pillar of Good Energy’s strategy, alongside electrification of heat and flexibility services. By providing products and services in these areas the Company aims to lead the transition to a distributed energy market and the future of energy services. Zap-Map, the UK’s leading EV mapping service, launched Zap-Pay in September, a new service that enables EV drivers to use a single app to pay for charging across different networks.




Kromek Group 12.1p GBP41.7m (LON:KMK)


The supplier of detection technology focusing on the medical, security screening and nuclear markets, announces the launch of the D5 RIID, the world’s smallest high performance radioisotope identification device (RIID). The ruggedised device, with ultra-low false alarm rate, is designed for military, homeland security and industrial use. The D5 RIID was developed under a programme with the Defense Threat Reduction Agency of the US Department of Defense. It detects a wide range of sources, including special nuclear material and mixed, shielded and heavily masked configurations. It provides high accuracy dose measurement and has an industry-leading ultra-low false alarm rate of less than 1 in 24 hours.




Quadrise Fuels 1.905p GBP20.5m (LON:QFI)


The supplier of MSAR(R) emulsion technology and fuels, a low-cost, cleaner alternative to heavy fuel oil announced the publication of a White Paper detailing the potential economic and environmental benefits of the implementation of MSAR(R) technology in the Americas. The paper is entitled “A clean solution to the Americas’ heavy fuel oil problem. Highlights include:


. Quadrise’s MSAR(R) technology enables production of a proprietary oil-in-water emulsion fuel oil – MSAR(R), that reduces energy costs for consumers and improves refinery profitability and yields. . Offers the most cost effective and cleanest refinery residue upgrading technology. . Delivers significant environmental benefits with a 30% reduction in NOx emissions and 50% lower ash emissions, with further potential to reduce CO2 by 20% (same as LNG).


. Implementation of MSAR(R) in refineries and power generation facilities in key regions such as Ecuador and Mexico can deliver cost savings of ~US$100 million per year per refinery to governments, whilst also benefiting the population and environment through lower emissions. . With over ten years of working in the region, Quadrise is now poised to progress regional commercial implementation.




SDI Group 92.8p GBP90.75m (LON:SDI)


The group focused on the design and manufacture of scientific and technology products for use in digital imaging and sensing control applications, has acquired Monmouth Scientific Limited, a UK manufacturer of biological safety cabinets, fume cupboards, laminar flow cabinets and cleanrooms. Total consideration, including earnout, is forecast to be approximately GBP5.8 million, net of cash acquired.


. Monmouth Scientific specialises in providing controlled clean air environments for scientific, medical and other technical applications


. The company is currently benefiting from high levels demand for its solutions for COVID-19 testing infrastructure


. Expected to move to new larger purpose-built premises in 2022 . Acquisition expected to be immediately earnings enhancing




Sigma Capital 131.5p GBP117.76m (LON:SGM)


Sigma, the PRS, residential development and urban regeneration specialist announced that the 3,000th new family rental home has been delivered for The PRS REIT plc (PRSR.L) through the Company’s PRS property platform. This takes the total number of PRS homes delivered by Sigma to approximately 4,725 homes over the last six years.


The completion marks another significant milestone in the development of the PRS REIT’s portfolio of high-quality family rental homes since its launch in May 2017, and brings the estimated rental value of its portfolio to approximately GBP28m. After the lifting of the first national coronavirus-related restrictions in May 2020, the pace of construction has accelerated steadily, and a further 2,003 homes are currently at various stages of development for the PRS REIT. Homes are located across the English regions, including the North West, Midlands, Yorkshire, North East and in the South of England.




Zephyr Energy 0.625p GBP4.35m (LON:ZPHR)


The Rocky Mountain oil and gas company focused on responsible resource development, provides an update on its project in the Paradox Basin, Utah, U.S., where the Company is preparing to spud the ‘dual-use’ State 16-2 well before the end of the year. The Company has signed a drilling contract with Cyclone Drilling Inc. This follows a competitive selection process by Zephyr’s team, involving extensive technical and commercial evaluation across multiple potential drilling contractors. Cyclone, based in Gillette, Wyoming, is one of the leading providers of rigs in the Rocky Mountain region.


For the State 16-2 well, the specific Cyclone rig under contract is Cyclone Rig #34. This rig is currently active on a drilling project in Wyoming and will be mobilising to the site of the State 16-2 well in Utah in the coming days, ensuring Zephyr remains on track for spudding the well prior to the end of this year. Additionally, the signing of the State 16-2 drilling contract is a trigger for the Company to draw down the second US$600,000 tranche of the US$2 million grant funds allocated by the DOE for the drilling of the well. The balance of the DOE funding, a further US$800,000, will be received by Zephyr in two further tranches once additional routine well development milestones are met.




Early Equity 0.75p GBP7.35m (AQSE:EEQP)


The e-commerce focused group based in Malaysia has raised GBP83k at 0.5p. he proceeds of the Subscription will be used to provide the Company with additional working capital. Further to the announcement on 21 October 2020, the Company has increased its strategic investment in Lotto Studios Limited by acquiring a further 17,606 ordinary shares representing 2% of Lotto Studios issued share capital, for the sum of GBP100,000. The Company’s total stake in Lotto Studios is now 26,409 shares representing 2.94% of its issued share capital.


Greg Collier, Chairman commented: “We are delighted to have increased our holding just as Lotto Studios is getting ready to launch its initial gameshow-branded social and real money games in Q1 of 2021, with two further launches expected later in 2021. We look forward to working more closely with the Lotto Studios team as the relationship between the two companies develops.




Active Energy 0.48p GBP7.3m (LON:AEG)


The international biomass based renewable energy and forestry management business announced an operational update on the development of the Company’s CoalSwitch(TM) reference plant at its Lumberton site.


. Player Design Inc. were appointed in September 2020 to complete the engineering and construction process for the Plant


. Additional equipment has been sourced and Active Energy has commenced the procurement process


. Construction crews will commence work in January 2021 with commissioning of the plant expected during Q2 2021


. AEG is in active discussions with prospective customers for the delivery of the next generation biomass fuels, including CoalSwitch(TM) in the USA




Head Chef


Derren Nathan


0203 764 2344


[email protected]


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 section B of annex I to Directive 2014/65/EU (“MIFID II Directive”); or (ii) investment research as defined in 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.

LEAVE A REPLY

Please enter your comment!
Please enter your name here