Small Cap Wrap – Agronomics, Allergy Therapeutics, Audioboom and more…

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13 September 2021


@HybridanLLP


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What’s cooking in the IPO kitchen?


Market rumors that Softline to list in London. Softline is a Russian founded, IT-services provider working with vendors like Microsoft, Oracle, and IBM. The company has a track record of outperforming in the IT market and a strong history of M&A growth. They’re headquartered in London, have around 5,000 employees and reported a turnover in 2020 of $1.8bln.


Oxford Nanopore Tech–expected intention to float on the LSE (Standard). The company behind a new generation of nanopore-based sensing technology, whose first products enable the real-time, high-performance, scalable analysis of DNA and RNA. Timing and offer TBA.


Fruugo.com which owns and operates a high growth and profitable global cross-border marketplace employing its own proprietary technology and data science, announces its intention to seek admission of its shares to trading on AIM. Due early Oct. Timing and offer TBA.


Optima Health is the UK’s leading provider by size of technology enabled corporate health and wellbeing solutions. To join AIM in late Sep. Offer TBA.


Petershill Partners, Expected Intention to Float on the London Stock Exchange. Petershill Partners, a leading investment group providing bespoke capital and strategic solutions to some of the world’s best performing alternative asset management firms. Petershill Partners today comprises minority investments in 19 high-quality Partner-firms, previously held in private funds managed by Goldman Sachs (NYSE:GS) Asset Management (GSAM). The Partner-firms have US$187 bln of aggregated assets under management. The Ordinary Shares would be admitted to the Premium Segment of the Official List of the FCA and to trading on the Main Market of the LSE. The Offer would comprise (i) the issue of new Ordinary Shares, raising Gross Primary Offer Proceeds of approximately US$750m to fund ongoing expenses and acquire further Alternative Asset Manager Stakes and (ii) the sale of existing Ordinary Shares in order to achieve a free float of 25%.Timing TBA


GreenRoc Mining to join AIM. Established in March 2021 as a UK public limited company for the purpose of acquiring all of the Greenlandic mining assets of Alba Mineral Resources PLC (AIM:ALBA) and progressing the exploration and development of those assets. The assets in question are the Thule Black Sands Ilmenite Project, the Amitsoq Graphite Project, the Melville Bay Iron Project and the Inglefield Multi-Element Project. Greenland will be the main country of operation. Gross funds raised on admission: GBP5.12m. Anticipated Mkt Cap on Admission: GBP11.120m. Due mid-September


Responsible Housing REIT to join the Main Market (Premium) in late September raising up to GBP250m. The Company’s investment objective is to generate a consistent and sustainable income-based return from the provision of Supported Housing accommodation assets and aligned sectors.


Blackfinch Renewable European Income Trust plc, a closed-end investment trust established to invest in a diversified portfolio of mixed renewable energy infrastructure assets, is considering proceeding with an initial public offering and has published a registration document. Raising up to GBP300m. Due on the Main Market (Premium) in October.


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 Late September.


Euro Sun Mining Inc (TSX:ESM, OTC:CPNFF, FRA:OL11) (TSX:ESM) seeking to join the Main Market in Q3 2021. The Company’s main asset, the Rovina Valley Project, which contains the Rovina, Colnic and Ciresata deposits, is one of the largest undeveloped copper-gold projects in Europe, holding approximately 400Mt of confirmed resources containing 7.0m ounces of gold and 1.4 bn lbs of copper.




Banquet Buffet


Agronomics 24.1p GBP193m (LON:ANIC)


The alternative proteins company focused on cellular agriculture and cultivated meat announced portfolio company Formo Bio GmbH (previously LegenDairy Foods GmbH) has raised a US $50m Series A funding round led by EQT Ventures. Agronomics participated in the round, subscribing for 1,186 Series A Preferred Shares, with a EUR3.15m investment. Agronomics now holds a total of 3,575 shares in Formo, representing an equity ownership of 5.94% on a fully diluted basis. Agronomics co-led Formo’s EUR4m Seed round in December 2019, with a EUR1m investment for 2,389 Series Seed Preferred Shares, which will see a 7.5x uplift on the original investment. This represents an IRR of 225% and, subject to audit, Agronomics will carry this position on its balance sheet at EUR10.7m (approximately GBP9.2m), inclusive of the Series A participation. This equates to an estimated portfolio weighting based on the Company’s last reported Net Asset Value of 9.1%.




Allergy Therapeutics 33.75p GBP216.6m (LON:AGY)


Allergy Therapeutics announces details of secondary endpoints from successful VLP Peanut 001 trial. Ex-vivo data for VLP Peanut support a beneficial efficacy profile. Demonstrates reduced ability to trigger immune cells associated with allergic reactions. Findings complement primary outcome of hypoallergic potential of VLP Peanut and provide confidence in upcoming VLP Peanut first in-human Phase I PROTECT study




Audioboom (AIM:BOOM) 770p GBP121m (LON:BOOM)


The global podcast company, is pleased to announce that it has continued its strong sales momentum and, in light of this and the Group’s trading and the prospects for the months ahead, the Board now expects that Audioboom will generate revenues for the year ending 31 December 2021 significantly in excess of the Board’s expectations at the time of the Company’s half year results and an increased adjusted EBITDA profit. This performance has been driven by continued strong performance in relation to Audioboom’s content-focused expansion plan. Highlights include: Increased premium advertising inventory from new major content partnerships and Audioboom Originals announced previously in 2021, including; Dark History, Unfiltered and The Fantasy Footballers. Increased demand and strong pricing during major events, including the start of the US NFL season, Premier League football and the F1 season. Increased back catalogue inventory created by Audioboom’s proprietary AdRip tool, which has been monetised through sustained growth in ad-tech related revenue.




Brandshield 18.75p GBP22.1m (LON:BRSD)


The cybersecurity company specialising in monitoring, detecting, and removing online threats provides a holistic brand protection solution to high-end medical and home-based aesthetics solutions provider Pollogen, resulting in removal of 92% of IP-infringing listings and counterfeit products from the internet, within the first month. BrandShield was enlisted by Pollogen to combat the surge in online counterfeiting, grey market products and fraudulent use of trademark rights across the web. Recognising the substantial risk posed to its brand, Pollogen, owned by the global medical device leader Lumenis, sought out BrandShield’s leading cybersecurity protection capabilities in response to detecting a surging number of unregulated products. Within the first month, BrandShield’s cybersecurity platform achieved an 92% infringement detection and takedown rate, taking back control of Pollogen’s digital presence and protecting their global customer base. Dealing with unauthorised sellers caused both Pollogen and its stakeholders to invest enormous effort and resources. By deploying BrandShield, these concerns were quickly resolved.




Image Scan Holdings 2.5p GBP3.4m (LON:IGE)


The specialists in the field of X-ray imaging for the security and industrial inspection markets, provides a trading update for the financial year to 30 September 2021, following new orders from police customers late in the second half. The first order, received after a rigorous selection process, is from a UK Police Force and is for four ThreatScan(R)-LSC portable X-ray systems. ThreatScan(R)-LSC is a combination package including both small and large format detector panels, back-pack, tablet PC imaging station and the I-Gen generator. The system provides great deployment flexibility for different threat scenarios, further enhanced in this case by the addition of WiFi range extenders to the package. The second order is for a further two ThreatScan(R)-LSC systems and is from a Police Department Bomb Squad in the USA. This order is the first sale of Image Scan’s ThreatScan(R) portable X-ray systems in the USA. It is anticipated that both orders will be delivered before the end of the financial year. This, together with continued careful management of costs, gives the Board the confidence to provide earnings guidance for the year ending 30 September 2021 of sales of approximately GBP2.9m and a trading profit performance close to breakeven. This represents a material improvement on the previously forecast loss of GBP200k.




Jade Road Investments* 22p GBP25.4m (LON:JADE)


Jade Road Investments Limited, the London-quoted, pan-Asian diversified investment vehicle focused on providing shareholders with attractive uncorrelated, risk-adjusted long-term returns, announced that it is releasing answers to ‘frequently asked questions’. The Q&A is addressing questions received from investors over the past few weeks and the Company will continue to update the Q&A section when it receives more queries in the future. The Q&A is available on the Company’s website at https://jaderoadinvestments.com/news-research/frequently-asked-questions. For the avoidance of doubt no new material information is included in the Q&A that has not already been published.




Mobile Streams 0.34p GBP8m (LON:MOS)


The mobile content and data intelligence company announced that in partnership with Quanta Media Group (QMG) the Company will be launching its LiveScores football 365 service in Argentina. The service is set to go live on 1 October 2021 and is expected to generate significant revenue for MOS over the next 3 years. Income is generated for MOS through a mixture of affiliate revenue share with Quanta and subscription payments via the current MOS billing contract with Movistar. It is estimated that the vast majority of revenue generated from the Argentina service will be from affiliate revenue share. Affiliate revenue occurs when a lead generated from the LiveScores service is sold to another organisation which will then market their service or product to the lead. All affiliate revenue share generated will be paid into the MOS UK account and therefore will not incur any currency related risks sometimes associated with the Argentinian market. Additional revenue from telco subscription may also be generated and will be paid into the MOS Argentina account. As with the Company’s successful launch in Mexico this service will utilise QMG content and the Streams delivery platform.




Salt Lake Potash 4.4p GBP140m (LON:SO4)


Isak Buitendag has been appointed as Chief Executive Officer (CEO) of the Company, subject to requotation of the Company’s securities on the Australian Securities Exchange (ASX). It is a non-board appointment. Mr Buitendag will be joining from his position as General Manager of Transformation at Kazzinc (69.7% owned by Glencore). Prior to Kazzinc, he was Vice President of Operations and Vice President of Development at Kazchrome, the largest ferrochrome producer in the world. Mr Buitendag has significant experience in Executive roles within the mining industry in Australia, Kazakhstan and Africa, including at BHP and Fortescue. In an Executive capacity he has led teams in project development and minerals processing and has a track record of delivering business turnarounds. The SO4 board believes Mr Buitendag’s skills and reputation as a disciplined operator and manager will serve shareholders well and look forward to his leadership bringing the Lake Way Project into a sustainable, profitable operation.




Tricorn (AIM:TCN) Group SUSPENDED (LON:TCN)


On 19 August 2021, the Company announced that the Board had resolved to file a notice of intention to appoint administrators to the Company and its UK subsidiary, Tricorn UK Limited, within 10 business days. On 6 September 2021, a revised Notice of Intention was filed with the High Court of Justice to extend this period by a further 10 business days. The Company and its advisers have continued to be engaged in discussions with various parties. Indicative offers have been received from certain parties for the acquisition of the trading operations and/or subsidiaries of the Company on a going concern basis, and discussions are ongoing with further parties which may lead to indicative offers on a similar basis. The Board continues to believe that in light of the continuing pressure on immediate working capital requirements and cash constraints and in the absence of a viable solution for additional funding or an offer for the shares of the Company, in the time available it remains in the best interests of stakeholders as a whole to pursue a sale of the Company’s trading operations and/or subsidiaries in order to secure the best possible outcome for creditors, suppliers, customers, and staff.




Verditek 4.45p GBP15.2m (LON:VDTK)


The international green energy technology company that develops, manufactures and sells advanced ultra-lightweight solar panels has been successful with its application for an Innovate UK grant. The grant is to part fund Verditek to develop in association with local partners, a robust, ultra-lightweight portable micro solar energy system, providing scalable, renewable power (50W-1.5kW) to off-grid communities in Zimbabwe. In particular, the focus is on creating efficient energy solutions for remote communities in rural Africa that can be applied quickly and economically, starting with the development project in Zimbabwe. The total project cost is just over GBP450k which will be funded to the extent of 70% by Innovate UK. Verditek estimates indicate that 80% of the work will be done by the Company with the local partners performing the balance.




Head Chef:

Derren Nathan

0203 764 2344

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