Small Cap Wrap – SourceBio Intl, Oakley Capital, Rotala and more…

0 24

19 Feb 2021


@HybridanLLP




*A corporate client of Hybridan LLP




Dish of the day


None


Off the menu


Codemasters has left AIM following a takeover by Electroniv Arts


What’s cooking in the IPO kitchen?


AMTE Power, a developer and manufacturer of lithium-ion battery cells for specialist markets, announced its intention to seek admission to trading on AIM. Admission is expected to take place during March 2021. The Company intends to raise approximately GBP7m by way of a placing of new ordinary shares in the capital of the Company. Timing TBC.


Samarkand Group Limited, the cross-border eCommerce technology and retail group opening up the world’s largest market for brands and retailers, intends to IPO on the Apex Segment Aquis Stock Exchange Growth Market. Admission is targeted for March 2021.


Cellular Goods a UK-based provider of premium consumer products based on biosynthetic cannabinoids announced its intention to join the main market (standard) this Spring. Target valuation GBP20m raising c. GBP8m “to finalise the development and launch of a range of the Company’s premium-quality consumer products based on biosynthetic cannabinoids, which is fully compliant under UK law.”


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 GBP300m 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.


Auction Technology Group is considering an IPO on the Main Market. The Group operates six world-leading online Marketplaces and proprietary global auction platform technology for curated online auctions. In FY20 the Group delivered pro forma revenue of GBP52.3m, supported by notable underlying year-on-year growth from both Standalone ATG Group and Standalone Proxibid Group (12.4 per cent. and 40.4 per cent., respectively). For the same period, the Group delivered a strong profitability performance of GBP22.3m pro forma Adjusted EBITDA representing a pro forma Adjusted EBITDA margin of 42.6 per cent. Expected 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 GBP400m. 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.


Team PLC announced their plans for an AIM IPO. Team owns Theta Enhanced Asset Management Ltd, trading as Team Asset Management. This is a Jersey-based active fund manager providing discretionary and advisory portfolio management services to private clients, trusts and charities. Assets under management were GBP291m in November, up from GBP140m in December 2019 . The Company is seeking to raise no less than GBP5 million. The Placing will be priced on a pre-money valuation for the Company of GBP7 million. Targeting March Admission.


Virgin Wines UK PLC recently set out their plans for an AIM IPO. Virgin Wines is a direct-to-consumer online wine retailer that sells products to retail customers in the UK through two subscription schemes and a pay-as-you-go offering. The Group also sells a range of beers and spirits and operates a B2B sales channel for corporates. Deal details TBC but media reports suggest a GBP100m valuation. Targeting 2nd March Admission


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.


According to media reports, Deliveroo, are expecting to release their IPO plans on 8th March. The company raised more than $180m in January with a valuation of more than $7bn.


Banquet Buffet


SourceBio Intl 205p GBP152.1m (LON:SBI)


The international provider of integrated state-of-the-art laboratory services and products, announces that it has entered into an agreement with Mitie Security Limited to manage the delivery of community based COVID-19 testing services through mobile testing units.


SourceBio will manage the delivery of the mobile COVID-19 testing laboratory service currently being deployed in a Department of Health and Social Care pilot scheme . SourceBio will oversee all laboratory operations and processes and will have responsibility for all clinical governance, quality assurance, staff training, sample processing and information management.


Currently four mobile testing laboratories using Oxford Nanopore’s LamPORE tests for COVID-19 have been deployed in the pilot which has been launched to support the Governments community-based testing efforts and ensure that COVID-19 testing is available for surge or increased infectious status within a specified region.




Oakley Capital 12.25p GBP34.7m (LON:OCI)


Oakley Capital IV2 (Fund IV) has agreed to invest in Dexters, London’s leading independent Chartered Surveyors and Estate Agents.


OCI’s indirect contribution via Fund IV will be GBP13 million.


Note that the above figure only relates to OCI’s share of Oakley Capital’s overall investment in Dexters.


OCI’s liquid resources available for future deployment (including this transaction) are estimated to be GBP176 million.


Dexters currently serves close to 27,000 landlords and in addition to its focus on lettings also facilitates more than 3,500 property sales per year. The Company has a long and consistent track-record of growth and cash generation through economic cycles, growing revenue at a 15% compound annual growth rate over the last 10 years, reaching GBP109 million last year.




IDOX 73.7p GBP327m (LON:IDOX)


The supplier of specialist information management software and solutions to the public and asset intensive sectors, notes the announcement this morning by Dye & Durham Limited and confirms it has received three non-binding indicative proposals regarding possible cash offers for Idox from Dye & Durham. The latest proposal received on 18 February 2021 is for a possible cash offer for Idox at a price of 75 pence per Idox ordinary share.


Idox confirms it has entered into discussions with Dye & Durham in order to explore a basis for the agreement of a recommended cash offer for Idox.




Rotala 26.5p GBP13.3m (LON:ROL)


The operator of bus routes in the UK for businesses, local authorities and the general public, announces that earlier this week the Company’s Heathrow depot at Stanwell, Middlesex suffered a fire in its administrative offices. No staff were injured and the fire is not thought to have been malicious.


The fire did not affect the vehicle maintenance areas or damage any of the Company’s vehicles. As a result, normal bus operations are unaffected. Repair to the building and rectification of the considerable smoke and water damage is estimated at this stage to cost approximately GBP250,000, which is expected to be fully recoverable from insurance with more than one insurer. There are therefore not expected to be any long-term financial consequences for the Company.




Jangada Mines 9.6p GBP23.2m (LON:JAN)


GBP1.25m placing at 9p. The net proceeds of the Placing will primarily be used for the continued development of the Company’s 100%-owned Pitombeiras Vanadium Project. Ceara State, Brazil.




Base Resources 16.5p GBP194.4m (LON:BSE)


Updated Kwale North Dune and Maiden Bumamani Mineral Resources (Kenya) Estimates. As part of the pre-feasibility study currently underway to assess the viability of mining the Kwale North Dune and Bumamani deposits, seeking to extend the mine life of Kwale Operations, additional drilling and mineralogy assessments have been conducted.


The Kwale North Dune Mineral Resources estimate has increased by 13% to 194 million tonnes at an average HM grade of 1.5%, containing 2.9Mt HM, based on a 1% HM cut-off grade.


99% of the Kwale North Dune Mineral Resources estimate is now reported in the Measured and Indicated categories.


The maiden Bumamani Mineral Resources estimate is 5.9 million tonnes at an average HM grade of 1.9%, containing 0.115Mt HM, based on a 1% HM cut-off grade.


The pre-feasibility study for the Kwale North Dune and Bumamani deposits is due for completion early in Q2 2021.




Provexis 0.8p GBP17.6m (LON:PXS)


The business that develops, licenses and sells the proprietary, scientifically-proven Fruitflow(R) heart-health functional food ingredient, has raised a gross GBP50,000 via a placing at 0.75p including director participation of GBP12.5k.




Urban Logistics 147.5p GBP376m (LON:SHED)


The specialist UK logistics REIT, announces the acquisition of six logistics assets for a total consideration of GBP27.8 million at a 6.87% NIY (net income yield). Richard Moffitt, Chief Executive, commented:


“We are delighted with these new logistics assets which are perfectly positioned to deliver essential goods the “last mile” to customers and businesses in key conurbations. In line with our strategic focus, all of these assets are single-let properties servicing high quality logistics tenants.”




Trans Siberian Gold 94.5p GBP82.4m (LON:TSG)


The low cost, high grade gold producer in Russia, announced the results of an independent Scoping Study for the 100% owned Rodnikova Project in Kamchatka, Far East Russia prepared by SRK Consulting (Russia) Ltd .


. Life of mine (LOM) 14 years based on a Mineral Resource Estimate, reported in accordance with the JORC Code (2012), of 6.3 Mt at an average grade of 5.0 g/t gold


. LOM gold production of 517,000 oz. at an average grade of 4.03 g/t. LOM silver production of 3,062,000 oz. at an average grade of 28.9 g/t


. Gold recovery 94% . Cut-off grade of 3.5 g/t, calculated based on $1,250/oz gold price assumption


. Production schedule does not include any potential future exploration success and Mineral Resource growth


. LOM CAPEX $133m of which $82m is initial/construction CAPEX in year 1


. Economics at LOM gold price of US$1,600/oz (Management sensitivity) ? Post Tax NPV10% of $177.6m


? Post Tax Internal Rate of Return of 59.2% Socio- economic contribution


. It is anticipated that, should the project advance, as a major employer in the Kamchatka region the project would create approximately 800 employment opportunities and generate significant tax remittances to regional and federal governments




Cadence Minerals 19.5p GBP28.9m (LON:KDNC)


Update on its investment in the Amapa Iron Ore Project Brazil. Further to Cadence’s announcement on the 10 February 2021, it can confirm that the court ruling has been published and therefore it is now effective.


DEV Mineraco S.A’s can now commence operations to ship sufficient iron ore to realise a US$10 million profit from the Amapa stockpiles situated at its port (after the deductions of all logistical, regulatory, shipping and sale costs). Looks forward to updating shareholders when operations recommence at the port


Discussions continue between DEV, Cadence and Indo Sino Pty Ltd (the Investors) and the secured bank creditors (Bank Creditors) in relation to a final settlement agreement. The execution of a final settlement agreement with the Bank Creditors would represent the satisfaction of Cadence’s remaining major precondition to make its initial 20% investment in the Amapa Project. On completion of the conditions and the release of the Cadence escrow monies, Cadence will become a 20% shareholder in the Amapa Project via our joint venture company, which will own 99.9% of DEV.




Head Chef


Derren Nathan


0203 764 2344


[email protected]




If you would like to unsubscribe, please email [email protected] with “unsubscribe




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.

Leave A Reply

Your email address will not be published.