17 May 2021
*A corporate client of Hybridan LLP
Dish of the day
Kistos (LON:KIST) readmitted to AIM, following the Company’s successful Equity Financing in connection with the Acquisition of Tulip Oil Netherlands. Tulip Oil has a portfolio of assets which include profitable, cash generative producing assets, plus exploration and appraisal assets. Tulip Oil has 19.5 mmboe of 2P reserves and has 102.1 mmboe contingent resources.
Boanerges Limited (AQSE:BNRG), admitted onto the Aquis Stock Exchange. The Directors believe that an opportunity exists to acquire and consolidate holdings in SMEs operating in the technology sector, with the intention of creating value for Shareholders. Technology company acquisitions may include those involved in Big Data, Machine Learning, Telematics and Internet of Things sectors. Early acquisition of these innovative technologies should provide maximum returns for Shareholders. £500k raised.
Off the menu
No Leavers Today.
What’s cooking in the IPO kitchen?
Elcogen Group has announced its intention to IPO on AIM. They are a manufacturer of ceramic anode-supported, low temperature solid oxide cell technology. Elcogen has two core product lines, ElcoCell and ElcoStack. Both product lines are used by customers to integrate into their own end products or systems either for distributed power generation (fuel cells), green hydrogen production (electrolysers) or syngas production (co-electrolysis). The Group operates in Estonia and Finland with headquarters in Tallinn, Estonia. Company financials and deal details TBC. Expected admission date early June 2021.
Pioneer Media Holdings Inc to join the Access Segment AQSE Growth Market. The Company is an investment company focused on the eSports and mobile gaming industries, and all business sectors related thereto. No funds being raised. Due 25 May.
Pharma C Investments to list as a SPAC on the Access Segment of the AQSE Growth Market. It is specifically seeking to take advantage of the dynamic regulatory environment surrounding legal Medicinal Cannabis. Raising £1m Due 26 May.
Clarify Pharma, an investment vehicle specialising in biotech and life sciences companies seeking to prove the safety and efficacy of psychedelic-based substances, announced its intention to apply for admission of its Ordinary Shares to trading on the Access Segment of the AQSE Growth Market. The flotation is expected to value Clarify Pharma at approximately £10.5m. The Company plans to raise approximately £5m.
Aquila Energy Efficiency Trust to admit its shares on the Main Market (Premium). Seeking raise of up to £150m. The Company will seek to generate attractive returns for Shareholders, principally in the form of income distributions by investing in a diversified portfolio of Energy Efficiency Investments. Due 2 June.
Taylor Maritime Investments to join the Main Market (Premium). The Company is an internally managed investment company with an Executive Team led by Edward Buttery. The Executive Team has to date worked closely together for the Commercial Manager, Taylor Maritime. Established in 2014 by Edward Buttery, Taylor Maritime is a privately owned ship-owning and management business with a seasoned team that includes the founders of dry bulk shipping company Pacific Basin Shipping (listed in Hong Kong 2343.HK) and gas shipping company BW Epic Kosan (formerly Epic Shipping) (listed in Oslo BWEK:NO). Taylor Maritime’s team of experienced industry professionals is based in Hong Kong and London. Taylor Maritime’s principals have been some of the most active buyers of Handysize and Supramax dry bulk ships having made over US$1.3b of asset purchases and sales since 1987. Seeking a $250m raise. Due 27 May 2021.
Kitwave Group, the independent, delivered wholesale business to join AIM. The Placing of the Placing Shares will raise gross proceeds of £64.0m for the Company and the Placing of the Secondary Placing Shares will raise gross proceeds of £17.6m for the Selling Shareholders. Mkt cap £105m. The management team, led by Paul Young, has overseen significant growth in both revenue and operating profit with revenue and Adjusted EBITDA growing to £592.0m and £27.6m respectively in FP20 (an 18-month period). In the 12 months to 30 April 2020, the Group’s revenue and Adjusted EBITDA was £399.0m and £17.5m respectively. Due 24 May.
Belluscura to join AIM. The designer and manufacturer of FDA cleared, lightweight and portable oxygen concentrators to raise £15m, with an expected pre-money market capitalisation of £35-40m. Due late May.
Dianomi, the provider of native digital advertising services to premium clients in the Financial Services and Business sectors, announces its intention to seek admission of its shares to trading on AIM. Admission is expected to take place during May 2021. Offer details TBA. In FY 2020, revenue was £28.43m, representing growth of 58.8% compared to FY19. The majority of the Group’s revenue is generated in the Americas (FY20: 76.6 %) followed by EMEA (FY20: 17.0%.), and APAC (FY20: 6.4%.) Earnings before interest and taxation was £2.02m in FY20 having grown from £0.25m in FY19.
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.”
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 £1.5m by way of placing of new Ordinary Shares to support further prospect acquisitions. Due 3 June
All Star Minerals 0.0525p £1.5m (AQSE:ASMO)
The Investing Company listed on the AQUIS Stock Exchange, has signed exclusive, non-binding Heads of Terms (HoT) with two separate companies, one with a suite of gemstone assets and one with a suite of diamond assets. The HoT outline the principal commercial terms upon which All Star proposes to acquire the entire issued share capital of either company.
4D pharma 94p £169m (LON:DDDD)
The pharmaceutical company leading the development of Live Biotherapeutic products (LBPs) – a novel class of drug derived from the microbiome, today announced that it will present data from its Phase II study of single strain LBP Blautix® in patients with irritable bowel syndrome (IBS) subtypes IBS-C and IBS-D in a poster session at Digestive Disease Week (DDW) 2021, taking place virtually May 21-23, 2021.
Emmerson 5.7p £47m (LON:EML)
Emmerson Plc, focused on developing the low cost, high margin Khemisset Potash Project announced its audited results for the 12 months ended 31 December 2020. Highlights include significant operational, corporate and commercial progress made towards establishing Africa’s first large-scale potash mine. Feasibility Study (“FS”) published confirming Khemisset’s ability to become a low capex, high margin potash mine with outstanding economic metrics. Grant of Mining Licence (post period end) providing the exclusive right to develop and mine Khemisset ahead of the anticipated initiation of construction by the end of 2021. Socio-economic study completed that demonstrated measurable and verifiable confirmation of the significant benefits that the Project will deliver at a local, regional and national level. Environmental and Social Impact Assessment completed to IFC standards. Conceptual, phased development plan completed post period end demonstrating major value enhancing opportunities including significantly reduced up-front capex of US$254.6m (pre-contingency) and potential for subsequent phases to be funded from internal cash flows. Appointment of CEO with demonstrable experience in taking large potash mines from concept through to construction. Appointment of new highly experienced Chairman on 27 April 2021 with 20 years of experience in the mining sector, particularly in the areas of corporate finance and financing strategy. Completion of AIM admission on 27 April 2021 and cancellation of the Company’s ordinary shares on the Official List and from trading on the Main Market, providing Emmerson with a listing on the world’s most successful growth market. Raised a total of £7.2m (during and post period end) in oversubscribed placings to fund the accelerated development of Khemisset.
EQTEC 1.65p £119m (LON:EQT)
The gasification technology solutions company for sustainable waste-to-energy projects announced the acquisition and planned recommissioning of a 1MWe waste-to-energy plant in Italy. Originally commissioned in 2015, the plant is built around EQTEC’s proprietary and patented Advanced Gasification Technology. The Company has acquired, and will lead a consortium to repower, own and operate, the biomass-to-energy plant in Castiglione d’Orcia, Tuscany, Italy. Once operational, it is intended that the plant will transform straw and forestry wood waste from local farms and forests into green electricity and heat for use in the local community.
Invinity Energy Systems 165p £143m (LON:IES)
The manufacturer of vanadium flow batteries delivering renewable energy on demand, has concluded contracting on another project awarded funds by the California Energy Commission (CEC). This follows the Company’s announcement in Q4 2020 that it has been selected for a number of projects funded by the CEC, California’s primary energy policy and planning agency. Invinity has entered into a contract with Webcor, a leading Californian construction firm, to provide a vanadium flow battery (VFB) for a project developed by Indian Energy LLC, a 100% Native American-owned utility-scale and microgrid development and systems integration firm with approximately 4 GW of solar PV and wind and 6 GWh of energy storage projects under development. The 0.5 MWh system is expected to be delivered during Q4 2021 and to contribute revenue of approximately £450k to the Company, relating to the Invinity VS3 vanadium flow battery, ancillary components and associated services.
Kefi Gold and Copper 1.98p £43m (LON:KEFI)
The gold and copper exploration and development company with projects in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia, notes the recent media commentary in Ethiopia regarding an Ethiopian Mines Ministry briefing held on 14 May 2021, at which it is understood reference was made to the cancellation of licences awarded to 27 mining and exploration companies and which included a verbal reference by a ministry official to an intention to issue warning letters to three other companies, including ‘Tulu Kapi Gold Mines’. Neither KEFI nor its subsidiaries, KEFI Minerals (Ethiopia) Limited and Tulu Kapi Gold Mines Share Company (TKGM), nor any of their associate companies, are aware of any breach of any licence conditions and have not received any such warning letter nor had notice of such an intended letter flagged to them formally or informally. The Directors of KEFI believe they have an especially close working relationship with the Ethiopian Government, which is a shareholder in TKGM at both the Federal and Oromia Regional levels. Last week, formal meetings of the TKGM shareholders, board of directors and Project task force (comprising senior representatives of TKGM and all involving Ethiopian Government agencies) were held which agreed the tasks and timetable for development of the Company’s Tulu Kapi gold project to commence in the coming months.
MyHealthChecked 4.85p £33.8m (LON:MHC)
The consumer home-testing healthcare company, announces it has on 16 May signed a second contract with Boots UK Limited, the health and beauty retailer and pharmacy group, to supply the MyHealthChecked™ COVID-19 at-home nasal swab kit, laboratory testing service and logistics for day two and day eight (D2/D8) coronavirus testing for international arrivals. The contract with Boots for the D2/D8 testing service will run parallel, and be complementary, to the Company’s pre-existing agreement, announced on 6 April 2021. MyHealthChecked is currently the only at-home PCR testing kit provider within Boots for General Testing and Fit-to-Fly services, launched on 7 April, and now expands the offering within Boots to include D2/D8 tests that will be available to purchase online, via www.boots.com across the UK, from May 17.
Pelatro 51p £19.6m (LON:PTRO)
The telecom Customer Engagement Hub software specialist has secured several contracts for change requests, adding up to approximately $300k that will be delivered in 2021. With these, the total value of contracts in hand representing 2021 revenue is about $6.8m. Commenting on this increase, Subash Menon, Managing Director and CEO said, “Given that we have clear visibility with contracts secured for $6.8m of revenue for 2021 so early in the year, together with the momentum we are building in our business, we are looking forward to a successful outcome this year in line with expectations.”
Rotala 36p £18m (LON:ROL)
Rotala welcomes the publication today of the latest paper from the Government on its plans for the reinvigoration of bus travel. This paper, called “National Bus Strategy: Bus Service Improvement Plans – Guidance to local authorities and bus operators”, provides further detailed guidance on the National Bus Strategy for England set out in the paper called “Bus Back Better” published on 15 March 2021. A further guidance paper covering Enhanced Partnerships is expected to be published by the middle of the year. Both papers published so far emphasise the need for both local authorities and bus operators to build on the close working relationships which have arisen between the two groups during the COVID-19 pandemic to deliver on the Government’s vision for bus operation in England. The Government has enjoined local authorities and bus operators to move at speed in formulating Bus Service Improvement Plans, taking a lead from the planning lessons learned in the COVID-19 pandemic. The Government has also promised £3b of new investment in buses to underpin its strategy. Rotala welcomes all these announcements and intends to be a keen participant in these initiatives. The ultimate aim is both better bus services for customers and better customer satisfaction with the services provided. This can only be good for the long term health of the bus industry.
Xtract Resources 5.45 £45.8m (LON:XTR)
An Induced Polarisation (IP) geophysical survey has identified potential extensions to the Racecourse Mineral Resource on the Bushranger copper-gold exploration project, located in the Lachlan Fold Belt (LFB) of New South Wales, Australia. The disseminated copper-gold mineralisation comprising the Racecourse Mineral Resource is associated with a strong IP chargeability response on the southwestern side of the central porphyry intrusion, which is evident on all survey lines, along 2.5km of strike length. The survey indicates that the Racecourse Mineral Resource has the potential to extend in several directions, including at least 800m to the northwest beyond the limit of the currently defined Mineral Resource. The deposit also appears to be open to the southeast and mineralisation previously detected by very limited drilling on the northeast side of the central porphyry body could be more extensive than currently known. The survey results will be fully processed and are expected to generate several drill targets for potential resource extensions and testing of possible new mineral zones as part of the planned Phase 2 drilling programme. An independent firm is being engaged to undertake technical and financial modelling for an initial open pit mine, examining several pit layout scenarios and economic parameters.
0203 764 2344
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.