Hybridan Small Cap Feast: 28/11/2024

* A corporate client of Hybridan LLP

** Potential means Intention to Float (ITF) has been announced, or it is a rumour

***Arranged by type of listing and date of announcement

****Alphabetically arranged

Share prices and market capitalisations taken from the current price on the day of publication

Dish of the day

Admissions:  

None

Delistings:

None

What’s baking in the oven?

Transferring markets:

8 November: Zentra Group plc (ZNT.L)* will delist from the Equity Transition Segment of the Main Market on 11 December and admit to the Access Segment of the AQSE Growth Market on the same day. Zentra Group is a UK-based residential developer, development manager and property manager focused on the North of England and on 22 November completed a series of transactions, after having changed the Company's name from One Heritage Group plc on 17 October.

Reverse Takeover:

18 November 2024: Greatland Gold (GGP.L) has entered into an agreement with certain subsidiaries of Newmont Corporation (NYSE:NEM) to acquire, subject to certain conditions being satisfied, a 70% ownership interest in the Havieron gold-copper project (thus consolidating Greatland's ownership of Havieron to 100%), and 100% ownership of the Telfer gold-copper mine, and other related assets and interests.  The Acquisition constitutes a reverse takeover under Rule 14 of the AIM Rules and accordingly an AIM admission document was published on 10 September 2024. The Acquisition is subject to a number of conditions precedent. Satisfaction of the Acquisition conditions precedent, and following that Acquisition completion and readmission of Greatland's securities to trading on AIM, is targeted in Q4 2024.

Potential**  Initial Public Offerings:

Rumours about December IPO

Canal+: the producer of the Paddington films, confirmed it would separate from Paris-based conglomerate Vivendi and is expected to float in London on the Main Market of the London Stock Exchange on 16 December, according to a newly published prospectus. The demerger is subject to a vote among Vivendi’s shareholders on 9 December and would come alongside the separation of advertising agency Havas and newly-named publishing business Louis Hachette from the group. Canal+ would trade in London using the ticker CAN. It was reported last week that the firm was seeking a valuation of up to Euro8bn (£6.7bn) in its public debut. Canal+ owns StudioCanal, a producer of the Paddington film series. Earlier this year, it agreed to take over South African pay-tv giant MultiChoice to grow its international operations.

“Santa's Wishlist” for 2025 IPOs

Shein: Rumours began again early October and are gathering pace that fast-fashion company Shein plans to list on the Main Market of the London Stock Exchange in early 2025. According to media reports, the IPO could value the company at £50.3bn (US$62.5bn), pending regulatory approval. Shein is collaborating with US investment banks Goldman Sachs, JP Morgan, and Morgan Stanley for the listing according to the press. Company leaders, including founder Chris Xu and executive chairman Donald Tang, are apparently engaging with UK investors to gauge interest. Shein initially considered a US listing but allegedly encountered issues with the SEC’s filing requirements according to newspaper coverage.
 

Banquet Buffet****


Andrada Mining 2.325p £38.5m (ATM.L)

A critical raw materials producer with mining and exploration assets in Namibia, announces its unaudited interim financial results for the six-months ended 31 August 2024. 22% increase in revenue to £10.8m (H1 2024: £8.9m), 42% improvement in operating loss to £1.5m (H1 2024: loss of £2.5m) and unaudited available cash balance, including undrawn facility on 31 August 2024, of £6.1m (US$7.2m) excluding £2.1m undrawn facility. Successful restructuring of Uis Tin Mining Company (UTMC), resulting in 100% ownership of Uis and Lithium Ridge. 14% increase in plant utilisation to 92% (H1 2024: 81%).


Arrow Exploration 23.25p £65.8m (AXL.L)

The high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins announces its Q3 results for the three and nine months ended September 30 2024.  The company reported their strongest quarter in their history for production, revenue, EBITDA and cash flow. Recorded $21.3m of total oil and natural gas revenue, net of royalties, representing a 53% increase when compared to the same period in 2023 (Q3 2023: $13.9m).  Adjusted EBITDA of $15.9m, a 62% increase when compared to 2023 (Q3 2023: $9.8m) and a 79% increase compared to Q2 2024 ($8.9m).  Cash position of $16.5m at the end of Q3 2024.


Diaceutics 118.5p £100.1m (DXRX.L)

The technology and solutions provider to the pharma and biotech industry provides an update to the scaling of its US commercial activities strategy. A commercial data partnership agreement was executed in H1 2024, and a further four agreements were executed in H2 2024 to date, with a total contract value in the first year of £1.13m ($1.48m). The commercial data partnership contracts already underway are contributing to revenue in 2024 and Annual Recurring Revenue growth. Commercial data partnerships expand Diaceutics' US commercial reach through marketplaces and leverage partner sales teams in a co-selling model. The Directors believe these contracts will further scale the company's commercial reach through the selling of high-margin data products, such as DXRX Signal, to a broader customer base, both in terms of new customer segments and pharmaceutical brands.   


Digitalbox  4.25p £5.0m  (DBOXL)

The mobile-first digital media business, which owns leading websites, including Entertainment Daily, The Daily Mash, The Tab, The Poke, TV Guide and Emmerdale Insider, has appointed Richard Spilsbury as Chief Finance Officer and Company Secretary, and provides an update on the Strategic Review process.  Richard brings experience working within a listed company, from his time at Future plc where he spent 14 years to 2014.  The Strategic Review has progressed to an appraisal of the existing business and the opportunities within it. Richard Spilsbury and Link Stone Advisory have been retained to support the executive in delivering the review to ensure the underlying business is not disrupted during the all-important Q4 period.

ECO Animal Health Group 71.5p £48.4m (EAH.L)

The animal health company with a portfolio of marketed veterinary products and a maturing proprietary R&D pipeline, today announces its Half Year Report for the six months ended 30 September 2024. Group Revenue decreased 13% to £33.2m (H1 2023: £38.0m), Adjusted EBITDA at £0.4m (H1 2023: £0.7m) and  cash balances decreased to £18.3m (30 September 2023 £20.6m).  The results are in line with the guidance provided in the 1 October 2024 Trading Update.


Ethernity Networks 0.1225p £0.5m (ENET.L)

The supplier of data processing semiconductor technology for networking appliances, announces a business update. As previously announced, the Company has been engaged in discussions with two Tier-1 wireless backhaul OEMs and these discussions are still progressing. One OEM has been testing the Ethernity universal edge platform (UEP) during the year and the other OEM, that is familiar with Ethernity's technology from a previous engagement, has expressed an interest in co-funding the development of the Application-specific integrated circuit (ASIC), with a view to providing volume orders for the ASIC for a period of five years once it became available. The Company is in meaningful discussions with several well-established Tier-1 third-party ASIC vendors that have expressed their interest in development of the ASIC and, should it commence, the Company plans to select one of them. The Company estimates that the overall non-recurring engineering (NRE) amount for the ASIC would be in the range of $15m-$17m, including ASIC design, contribution to Ethernity and the associated IP, which would need to be funded by the prospective customers and be accompanied by minimum purchase commitments for the finished product.


Pipehawk  1.15p £0.4m (PIP.L)undefined
The dynamic business offering advanced engineering solutions to challenging technical requirements across many industries announces its final results for the year ended 30 June 2024. Turnover of £9.1m (2023: £6.5m). Excluding QM Systems Ltd, the Group's turnover for the financial year was £2.9m. Loss before taxation and exceptional items for the financial year of £821k (2023: loss £3,28m). Excluding QM Systems Ltd, the Group' loss before taxation and exceptional items for the financial year was £0.27m. Cautiously projecting a return to operating profitability in the current financial year ending 30 June 2025.


Serabi Gold 95.5p £72.3m (SRB.L)

The Brazilian focused gold mining and development company releases its unaudited interim results for the three and nine-month periods ended 30 September 2024.  Gold production for the first nine months of 2024 of 27,499 ounces (2023: 25,262 ounces). Cash held on 30 September 2024 of $20.0m (31 December 2023: $11.6m including US$0.6m relating to the exploration alliance with Vale).  EBITDA for the nine-month period of $24.7m (2023: $8.8m). Average gold price of US$2,338 per ounce received on gold sales during the nine month period (2023: US$1,940).


TheraCryf 0.5375p £2.3m (TCF.L)

The clinical stage drug development company focusing on oncology and neuropsychiatry, announces its unaudited interim results for the six months ended 30 September 2024. Acquisition of Chronos Therapeutics Ltd in April 2024 added a late pre-clinical stage neuropsychiatry portfolio - integration now complete, Chronos is now a wholly owned subsidiary. The Placing, Subscription and Retail Offer in April 2024 raised gross proceeds of £0.9m, with directors and PDMRs investing c.10% of gross proceeds. Post-tax loss of £1.1m (2023: £1.5m) and cash deposits, cash and cash equivalents balance on 30 September 2024 of £1.2m (30 September 2023: £3.7m)
 

TPXimpact Holdings 38.5p £35.2m (TPX.L)

The technology-enabled services company focused on people-powered digital transformation announces its unaudited interim results for the six months ended 30 September 2024. Revenue of £37.8m (H1 2024: £41.6m), a decrease of 9.2% reflecting market headwinds, Adjusted EBITDA up over 15% to £2.3m (H1 2024: £2.0m) and Net debt (excluding lease liabilities) as at 30 September 2024 of £7.9m (31 March 2024: £7.1m; 30 September 2023: £12.8m). New business wins of £35m in the first half, with increasing momentum: Q1: £9m, Q2: £26m and £29m so far in Q3. No change in FY25 targets: flat revenue growth for the year and Adjusted EBITDA in the range of £7-£8m, and net debt of around 1x EBITDA .

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