By 
7 Dec 2020
@HybridanLLP
*A corporate client of Hybridan LLP
Dish of the day
Reverse acquisition of HeiQ Materials AG (HEIQ.L) By Auctus Growth. 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. H1 2020 revenues of $30m and EBITDA of $11.5. Anticipated mkt cap GBP141 million, Main Mkt (Standard).
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.
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
Banquet Buffet
Marlowe 579p GBP349m (LON:lMRL)
The specialist services group focused on developing companies which assure safety and regulatory compliance has acquired Network of Staff Supporters Limited (NOSS) for an initial consideration of GBP0.7 million.
NOSS, established in 1996, is headquartered in Wrexham and provides Employee Assistance Program (EAP) services including counselling, critical incident support, mediation and wellbeing support & training to businesses nationwide. The EAP services provided by NOSS are highly complementary to Marlowe’s Occupational Health and Employment Law & HR business lines.
For the year ended 30 September 2020, NOSS generated an adjusted EBITDA of GBP0.1 million on revenues of GBP0.5 million. Net assets as at that same date were GBP0.1 million. The total enterprise value is expected to be in the region of GBP0.8 million and includes a contingent cash earn-out expected to be in the region of GBP0.1 million. The acquisition will be funded from Marlowe’s existing cash resources.
Actual Experience 115p GBP55m (LON:ACT)
The analytics-as-a-service company has signed a three-year framework agreement with an American based multinational computer technology company for its new Human Experience Management (HXM) offerings. Given the new Channel Partner’s global reach and prominent industry position, the Board of Actual Experience believes they have the potential to be a major global channel partner.
Hardide 35.5p GBP18.9m (LON:HDD)
‘Robust results in challenging conditions – In-line with market expectations’. Revenue of GBP4.8m (FY2019: GBP5.1m)
. Gross margin of 49% (FY2019: 48%)
. Reduced EBITDA loss of GBP0.5m before exceptional items, including GBP0.2m of costs relating to site relocation (FY2019: loss before exceptional items GBP0.6m). The beneficial impact on EBITDA this year of applying IFRS 16 is GBP0.4m (after IFRS 16, like for like FY2019 EBITDA loss of GBP0.4m)
. Over-subscribed fundraising of GBP2.5m (before expenses) to fund additional equipment, enhance new UK site at Longlands Road, Bicester and strengthen the balance sheet. Cash at bank at 30 September 2020 of GBP2.7m (FY2019: GBP4.8m)
Looking forward, the Board retains a cautious outlook in the short-term as the uncertainty of COVID-19 continues to impact on our customers’ visibility for their own businesses. This is set against a confidence that as the global economy recovers, volume demand will return and continue on the previous upward trajectory. The Board is excited by the progressive shift to forms of energy that are not derived from fossil fuels and the moves towards a carbon-neutral future being taken by the major oil & gas companies and our customers. The Hardide coating is already incorporated in a solar energy application in Europe and Hardide is making excellent progress on a fast-track test programme with a leading, blue chip, clean energy company in the USA.
Warehouse REIT 117p GBP443m (LON:WHR)
The AIM-listed company that invests in e-commerce urban and last-mile industrial warehouse assets in the UK, announces that it has acquired Granby Industrial Estate in Milton Keynes, comprising 24 urban logistics and trade counter units. The purchase price of GBP17.5 million reflects a net initial yield of 5.7%.
President Energy 1.6p GBP32.4m (LON:PPC)
The energy company with a diverse portfolio of production and exploration assets, announces an operations and production update in relation to its activities across the Group.
o Compressor at Las Bases field, Rio Negro, now commissioned
o Newly drilled well LB-1001 at the Las Bases field opened and producing, new EVN-x1 at Estancia Vieja field well to follow
o Production in Salta, Argentina stable and South Louisiana, USA steady
o Total current instantaneous Group net production estimated at approximately 4,000 boepd
o Current net gas production in Argentina approximately 2,000 boepd
o The Company is currently finalising plans for next year’s capital expenditure
Learning Tech Group 162p GBP1.2bn (LON:LTG)
Acquisition of eThink Education for up to $36m
– Delivering on strategy to consolidate high-growth Moodle market
– US-focused eThink is LTG’s third Moodle acquisition, building a sector powerhouse. eThink is an industry leader in North America in the high-growth Moodle open-source LMS market and will be integrated into LTG’s Open LMS business acquired in April 2020.
eThink has delivered strong and consistent growth in revenue (FY20: c.$9.5 million) and EBIT (FY20: c.$2.8 million) and is well positioned to accelerate this through joining the Open LMS business and taking advantage of opportunities to generate further value as part of an enlarged LTG with market-leading Moodle expertise.
Ceres Power 1014p GBP1.7bn (LON:CWR)
. Bosch extends its successful collaboration with Ceres to move from prototyping to preparing for mass production of SOFC (solid oxide fuel cell) systems based on Ceres’ proprietary fuel cell technology
. Multiple sites in Germany are aiming to produce an initial aggregate 200MW capacity in 2024
. SOFC systems to be used in the stationary power market, initially for decentralised power plants in cities, factories, data centres and electric vehicle charging infrastructure
. Value to Ceres from 2021 to 2023 is around GBP23m, of which c.GBP6m is conditional on meeting KPIs based on performance
Open Orphan 24p GBP160m (LON:ORPH)
The specialist CRO pharmaceutical services company which is the world leader in the testing of vaccines and antivirals using human challenge clinical trials is pleased to announce its subsidiary Venn Life Sciences (Venn) has been awarded two new contracts.
The first contract, which will commence immediately, is a COVID-19 study for a European pharmaceutical company which involves 200 patients in 50 sites across 5 countries around the world. Venn’s Paris team will manage the randomisation and supply management for this randomised, double-blind, placebo-controlled Phase 2 Clinical Trial to evaluate the safety and efficacy of a combination treatment of two drugs, and the best supportive care for patients with moderate and severe COVID-19 in a hospitalised setting.
Venn’s team based in the Breda office, in the Netherlands has also signed a contract with a European pharmaceutical company. The contract will see Venn assist with project management, design and implementation of new processes related to clinical development and use its expertise to deliver process improvement. The contract, which starts immediately, will run until December 2021 delivering significant revenues for Venn.
Ariana Resources 5.5p GBP58.8m (LON:AAU)
Additional resources estimated in accordance with the JORC 2012 Code for the Magellan Project, which is 100% owned by Venus Minerals Ltd. Venus is focused on the exploration and development of copper and gold assets in Cyprus. Ariana is currently earning in to 50% of Venus.
. New Sha Sector JORC Mineral Resource Estimate of 1Mt @ 0.80% Cu + 0.3% Zn (Inferred), including a higher-grade zone of 0.5Mt @ 1.13% Cu + 0.3% Zn (Inferred); potential for additional resources to be defined due to lack of modern exploration within the immediate area.
. Significant potential for gold and silver rich zones to be defined within the resource at the New Sha Sector, with a JORC Exploration Target of 0.5Mt to 1.5Mt for 6,500oz to 41,000oz gold at an average grade of 0.40 g/t Au to 0.85 g/t Au.
. Revised JORC Mineral Resource Estimate (stated gross) of 9.5Mt @ 0.65% Cu # (Inferred), with additional potential for gold, silver and zinc-rich zones (up to 0.6% Zn) across the Klirou, Kokkinoyia and New Sha sectors of the Magellan Project.
. New exploration drill-hole planning currently underway to test several target areas within the prospective area.
Randall & Quilter 182.5p GBP409m (LON:RQIH)
The non-life global specialty insurance company focusing on Program Management and Legacy Insurance businesses, is announced that Accredited Specialty Insurance Company (ASI), R&Q’s newly formed Excess & Surplus (E&S) lines carrier, has been assigned by A.M. Best Group (AM Bes”) a Financial Strength Rating of A- (Excellent), a Financial Size Category of IX, and a Long-Term Issuer Credit Rating of “a-“. The ratings have been assigned an outlook of ‘stable’.
In a statement accompanying the affirmation, AM Best noted: “The ratings of ASI reflect the consolidated balance sheet strength of R&Q, which AM Best categorizes as very strong.”
Head Chef
Derren Nathan
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 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.
Comments