Small Cap Wrap – Kibo Energy, Hargreaves Services, Myanmar Investments.
5 Feb 2021
*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?
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 £20m raising c. £8m “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.”
Kanabo Group (RTO by Spinnaker Opportunities SOP.L) on the main market (standard). Raising £6m, enlarged mkt cap £23.4m. Kanabo focuses on the distribution of Cannabis-derived products for medical patients, and non-THC products for CBD consumers . Due 16 Feb.
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 £300m 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
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 £52.3 million, 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 £22.3 million pro forma Adjusted EBITDA representing a pro forma Adjusted EBITDA margin of 42.6 per cent.
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 £400m. 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.
Cordiant Digital Infrastructure to admit its shares on the Specialist Fund Segment of the Main Market of the London Stock Exchange . Targeting a £300m raise. Cordiant invests in global infrastructure and real assets, running infrastructure private equity and infrastructure private credit strategies through limited partnership funds and managed accounts. Due 16 Feb
4basebio UK Societas is a specialist life sciences group focused on therapeutic DNA for gene therapies and DNA vaccines and providing solutions for effective and safe delivery of these DNA based products to patients. The Company has been divested from 4basebio AG , a German company listed on the Prime Standard segment of the Frankfurt Stock Exchange . No capital to be raised on Admission. Anticipated market capitalisation on AIM Admission: £14.53m. Due 17 Feb
Baskerville Capital plc (to be renamed Oberon Investments Group Plc) is a boutique financial institution providing a personalised wealth management service for retail and professional clients, as well as a corporate broking arm for small and mid-cap companies. Oberon’s strategy is to progress through the organic growth of assets under administration in its wealth management division and by the acquisition of complementary businesses in the financial services sector and by creating a trusted brand for the provision of advisory and fundraising services for companies in the small and mid-cap sectors. Expected admission date 9 February 2021.
Cornish Metals (TSX-V: CUSN) intends to list on AIM. The Company is proposing to raise £5m by way of private placement of new Common Shares to advance the United Downs copper-tin project. The Company expects that Admission will become effective in February 2021. The Company’s Common Shares will continue to be listed and trade on the TSX-V in Canada.
Kibo Energy* 0.375p £8.3m (LON:KIBO)
The Africa-focused energy company announces that further to the RNS dated 28th January 2021, its subsidiary Mast Energy Developments Plc (MED) has raised in excess of £5m through Clear Capital Markets Ltd for its upcoming IPO on the Official List of the London Stock Exchange plc (“London Stock Exchange” or “LSE”) by way of a Standard Listing, which on listing will have a market capitalisation of c. £23 million. MED will now proceed with final submissions to the FCA and will revert in due course with the publication of the final prospectus which will include listing date details. Kibo intends to maintain a strategic interest in MED post the initial fundraise and Admission of at least 55%, ensuring continued upside from future developments.
Hargreaves Services 292p £94.3m (LON:HSP)
The diversified group delivering services to the industrial and property sectors announced the conditional sale of a further phase of land at Blindwells, its major 1,600 unit residential development site near Edinburgh.
Following the completion of the first sale of land at Blindwells to Bellway in January, Hargreaves Land has now exchanged a conditional sale contract with Persimmon for a further 12.9 acre parcel. Completion is conditional on receipt of detailed planning permission and the completion of infrastructure works to service the site. The Persimmon phase has capacity for 192 homes including 30 designated as affordable.
The minimum sale value of this phase is £9.3m, with one third payable on completion and two further equal installments to be paid 12 months and 24 months later as infrastructure serving the plots is constructed. Completion is expected in the second half of the financial year ending 31 May 2022.
Myanmar Investments 0.6p £22.9m (LON:MIL)
The Myanmar focused investment company, announces that further to its announcement of 1 February 2021, trading in the Company’s ordinary shares and warrants on AIM will be restored at 7.30 a.m. today .
“There is limited news on the evolving political situation in Myanmar. To date, some new cabinet ministers have been appointed and banks and most communications systems are operating including internet access. The Company’s two investments in the microfinance sector and mobile phone communication towers have so far not been directly affected by the recent events however it is too early to forecast the future impact on these investments. The Company is closely monitoring the situation and will provide shareholders with further updates in any new developments as they become available.
The Company would encourage investors to always assess the veracity of media commentary on the evolving political situation in Myanmar.”
Savannah Energy 17.075p £171m (LON:SAVE)
The African-focused British independent energy company sustainably developing high quality, high potential energy projects in Nigeria and Niger, is pleased to announce that its Accugas subsidiary has entered into a new gas sales agreement with Mulak Energy Limited.
The GSA is initially for a seven-year term. It envisages the supply of gas produced by Savannah’s majority-owned Uquo field for an initial two-year period on an interruptible basis and the subsequent five years on a firm contract basis. During the Interruptible Gas Delivery Period, Mulak is able to nominate a maximum daily quantity of up to 2.5 MMscfpd. Volumes in the Firm Delivery Period will be agreed by the parties before the end of the Interruptible Gas Delivery Period. The GSA is priced to reflect Mulak’s status as an industrial customer; Accugas, therefore, expects to see its weighted average gas sales price realisation increase as a result of this contract, without the need for any incremental capital expenditure beyond our previously announced plans. Sales under the GSA benefit from a bank guarantee arrangement from an investment grade credit rated international bank.
Aquis Exchange 525p £142.6m (LON:AQX)
Yesterday the exchange services group announced the resumption of trading in Swiss shares on its pan-European exchange facility, Aquis Exchange.
Following the UK government’s agreement on equivalence with Switzerland, UK-based exchanges now have the ability to offer trading in Swiss shares. This follows the ban on EU venues from offering trading in Swiss shares, implemented in July 2019 after the EU did not renew equivalence with Switzerland.
The shares will be traded on Aquis Exchange’s London venue, and include over 125 key Swiss names including Novartis, Roche and Nestlé.
Distribution Finance 63.5p £70.8m (LON:DFCH)
The holding company of DF Capital Bank Limited, a newly authorised bank providing personal savings products and working capital solutions to dealers and manufacturers across the UK, today announces that it has conditionally placed with certain new and existing institutional and other investors, and entered into a direct subscription agreement at a price of 55.0 pence per Placing Share to raise £40.0 million.
· Net proceeds of the Placing to be primarily utilised to accelerate the Group’s business plan and loan book growth by:
o unlocking significant and current pipeline of demand;
o allowing the Group to provide larger facilities to select customers where the Group is currently restricted due to regulatory large exposure limits; and
o removing the current £270 million constraint on the loan book and should support a loan book of up to £550 million.
Tekcapital 17.25p £16m (LON:TEK)
The UK intellectual property investment group focused on creating valuable products from investing in university technology, is pleased to announce that portfolio company Salarius Ltd’s subsidiary MicroSalt Inc. has launched an equity crowdfund to raise up to US$750,000.
MicroSalt Inc. has launched the crowdfund via crowdfunding platform microventures.com . US$188K has already been raised to-date and their goal is to raise up to US$750,000 in the next 150 days at a pre-money valuation of US$5m, with a 10% early subscriber discount for the first $100,000 invested. Proceeds will be used to help fuel the company’s growth and innovation strategy.
Ascent Resources 13.5p £13.1m (LON:AST)
The onshore Caribbean, Hispanic American and European focused energy and natural resources company, notes the recent share price movement and provides an update in relation to its previously announced direct negotiations with the Government of the Republic of Slovenia and on its Slovenian operations.
Direct Settlement Negotiations -The Company confirms it remains in direct negotiations with the Republic of Slovenia with a view to potentially settling the claim in an amicable manner in the short term, as previously announced on 22 October 2020. The Company also announces that PG-11A, one of its two development wells on the Petišovci tight gas field has now been put back into production.
Following recent increases in local gas prices (some 175% up from mid 2020 levels of circa EUR7 per MWh) and a recently observed pressure anomaly building up in the annulus and tubing at PG-11A, the JV partner has put the well back into production with a view to accreting additional JV revenues and to enable an evaluation of the source of the pressure anomaly and remedial action. The well has begun flowing on the 4 February with an initial production rate equivalent to circa 12,000 scm/d and will be monitored over the course of the next week for a stabilised production rate. The second well, PG-10 is currently producing at circa 5,000 scm/d whilst PG-11A had previously been shut in since December 2019.
Silence Therapeutics 597p £497m (LON:SLN)
The specialist in the discovery, development and delivery of novel short interfering ribonucleic acid (siRNA) therapeutics for the treatment of diseases with significant unmet medical need, today announced an oversubscribed private placement of 2,022,218 of the Company’s American Depositary Shares, each representing three ordinary shares of 5 pence each in the capital of the Company, at a price of US $22.50 per ADS, with new and existing institutional and accredited investors. Silence anticipates that the aggregate gross proceeds of the Private Placement will be approximately US $45 million (approximately £33 million) before deducting placement agent fees and other expenses.
Silence intends to use the net proceeds from the Private Placement primarily to support development of the Company’s pipeline based on its messenger RNAi GOLD TM (GalNAc Oligonucleotide Discovery) Platform, and for general corporate purposes.
Warehouse REIT 123.75p £478.8m (LON:WHR)
The company that invests in e-commerce urban and last-mile industrial warehouse assets in the UK, announces a placing to raise gross proceeds of up to £45.9 million at 121p. The Placing proceeds, together with the Group’s existing facilities, will be used to help finance the acquisition of two adjacent distribution warehouses in Harlow for £13.9 million (including costs) and two further assets
0203 764 2344
If you would like to unsubscribe, please email [email protected] with “unsubscribe me”.
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.