16 October 2020
*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?
SourceBio International to list on AIM. Offer TBC. Due 29 Oct. Press reports suggest raise of up to £35m. Services include Healthcare Diagnostics, Genomics, Stability Storage and infectious Disease Testing – since May 2020, the Group has provided COVID-19 Antigen RT-PCR testing services.
Round Hill Music Royalty fund to IPO on the Specialist Fund Segment of the Main Market of the London Stock Exchange, by way of a placing and offer for subscription targeting the issue of 375 million ordinary shares at an issue price of US$1.00 per Ordinary Share. The Company’s Investment Objective is to provide investors with an attractive level of regular and growing income and capital returns from investment primarily in high quality, music intellectual property. Due mid-November.
Meritwell II intends to list on the Specialist Funds Segment of the LSE raising up to £250m. The Placing will provide UK institutions with the opportunity to “swap” illiquid holdings which have become time and resource consuming holdings, at their bid price, in return for ordinary shares in the Company. Due 26 Oct.
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 £179m, announced its intention to raise up to £62.5m MailBox REIT will apply for the Ordinary Shares be admitted to trading on the IPSX Prime segment of (IPSX ). IPSX is a new Regulated Investment Exchange regulated by the FCA and is the world’s first such exchange dedicated to the initial public offering and secondary market trading of companies owning single institutional grade real estate assets and multiple assets with commonality. Due 21 October.
, 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). Timing tbc
Buffettology Smaller Companies Investment Trust— Buffettology is seeking to raise a minimum of £100m via an initial placing, an offer for subscription and an intermediaries offer on the Main Market. will be the Investment Manager to the Company, led by Keith Ashworth-Lord (CIO of Sanford Deland Asset Management Limited). Sanford DeLand manages approximately £1.4bn across two open ended funds, the CFP SDL UK Buffettology Fund and the Free Spirit® Fund. Due 29 October.
() – Proposed secondary listing on bringing one of the world’s largest precious metal streaming companies to the London Stock Exchange. Due Q4 2020.
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
, 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. Targeted for Q4 2020. 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 grid at critical times.
Physiomics* 6.85p £6.7m ()
The oncology consultancy using mathematical models to support the development of cancer treatment regimens and personalised medicine solutions has been awarded further contracts of undisclosed value for projects with existing clients Bicycle Therapeutics plc and Merck KGaA.
The project with Bicycle is the eighth signed with this high-profile UK biotech company, spanning four different assets within its pipeline, and involves population pharmacokinetic analysis of clinical data from one of these assets. The project with Merck is an extension of one of the projects previously announced for calendar year 2020 in what is now the third year of work under the Master Services Agreement announced in November 2017.
It is anticipated that both projects will be completed over the next four months.
Arcontech 201p £26.7m ()
The provider of products and services for real-time financial market data processing and trading, announced the signing of a new agreement with a longstanding Tier 1 bank client. The agreement relates to the migration of the Client from Windows to Linux and to upgrade its systems to Arcontech’s new graphical user interface and monitoring functionality for the client’s MVCS (Multi-Vendor Contribution System). Together with the new business win to contribute to Factset announced on 2 October 2020, the additional recurring revenue will be approximately £100,000 per annum.
Renold 11.7p £26.4m ()
Renold, a leading international supplier of industrial chains and related power transmission products, today issued a period end trading update covering the six months ended 30 September 2020 ahead of announcing interim results on 11 November 2020.
Renold delivered a resilient performance in the first half despite its markets being significantly impacted by the Covid-19 pandemic. The business remained profitable throughout the period and achieved a significant reduction in net debt of £10.2m to £26.4m (FY 2019/20: £36.6m), despite sales revenue down 17% on the prior year, at £82m.
Galileo Resources 0.75p £6m ()
The exploration and development mining company, , further to its announcement on 15 September 2020, announced the completion on 15 October 2020 of the acquisition of 100% of Africibum Co Pty Ltd and its interests in the North East Kalahari Copper Belt project in Botswana. Colin Bird, Executive Chairman and CEO of Galileo, commented:
“I am very pleased that we have completed the acquisition of Africibum whose licences lie in an area of high prospectivity in the Kalahari Copper Belt. The licence area is 15 km from the Boseto Copper Project and generally on trend with other known discoveries in the area. With drill holes assaying >1% Cu the project has already advanced beyond the conceptual stage, and it is the intention to test for an extension of the open strike on one licence and update the geophysics on another licence.
The Acquisition completes the Company’s Kalahari Copper Belt portfolio and we look forward to exploration in our expanded footprint in the Belt which is part of the Northwest Botswana Rift which the USGS in 2015 reported as the world’s most prospective area for yet-to-be discovered sediment hosted copper deposits” .
UK Oil & Gas 0.15p £18.7m ()
Following Surrey County Council’s (“SCC”) 3rd August decision to redetermine the Company’s Loxley gas appraisal planning application, SCC have now confirmed to UKOG that the rerun is scheduled for 27th November 2020.
This unprecedented rerun decision was taken by SCC following receipt of external advice regarding the Company’s and over 100 other formal complaints questioning the lawfulness of SCC’s 29th June planning committee meeting (“PCM”). During this PCM the members voted by 6 to 5 against SCC’s planning officer’s recommendation to consent to UKOG’s development.
As per the Company’s 21st October announcement, an Xodus report estimates that the Company’s 100% held PEDL234 licence contains significant calculated mean and high case recoverable gas volumes of 34 billion cubic feet (“bcf”) and 54 bcf respectively, placing Loxley as the second largest gas accumulation ever discovered and flow tested in the UK onshore. Xodus calculate that approximately 78% of the overall Loxley gas accumulation lies within PEDL234.
URU Metals 315p £4.7m ()
Progress in its environmental impact assessment as part of the application for a Mining Right for the Zebediela Project to mine the NI43-101 compliant indicated and inferred resource of over 9 billion pounds of nickel, which was ranked in 2014 as one of the top ten Class 1 nickel sulphide resources globally (Mudd, & Jowitt, (2014). A detailed assessment of global nickel resource trends and endowments. Economic Geology, 109(7), 1813-1841).
The Company submitted an application to convert its existing Prospecting Rights to a Mining Right to the South African Department of Mineral Resources (DMRE) as announced on the 30 August 2019. As part of the application, the Company is required to conduct an environmental impact assessment to understand the impact of an open pit operation to mine the nickel resource. The environmental impact assessment consists of various specialist studies which are currently underway.
Should a mining right be granted, the Company will secure the rights to mine and explore for, for the next 30 years, the following commodities: nickel, chrome, cobalt, copper, gold, iron, vanadium, platinum, palladium, rhodium, osmium, ruthenium and iridium. The area to the immediate east of the existing nickel resource was partly drilled in 2017, drill results contained nickel and platinum group elements (PGE’s) at a higher grade than that found in the Company’s existing NI43-101 compliant resource. The company believe this target area could be the up-dip extension of Ivanhoe Mines’ 800 m deep Platreef project. Ivanhoe’s Platreef Project is located immediately west and adjacent to URU’s Zebediela Project.
NetScientific 61.5p £9.2m ()
The life sciences and technology investment and commercialisation company, it has agreed to acquire the outstanding minority interest of 43.6% of its portfolio company, ProAxsis Limited from QUBIS Limited and the founders (the “Sellers”), for a cash consideration of £228,532.50. In parallel, the key patent has been assigned by the sellers.
ProAxsis Limited is a commercial-stage diagnostics company, based in Northern Ireland, with a rapidly growing global client list of pharmaceutical companies and academic laboratories. The company has registered a CE Mark for activity-based immunoassays targeting Neutrophil Elastase (NE) and Proteinase 3, as biomarkers of lung infection and inflammation in chronic respiratory diseases such as COPD, cystic fibrosis and bronchiectasis. This technology has been translated into a point-of-care test (NEATstik®), to enable ongoing monitoring of active NE levels.
In the year ended 31 December 2019, ProAxsis generated revenues of £734,842 and a loss after taxation for the financial year of £181,082, of which £52,178 was included with non-controlling interests. Its net liabilities as at 31 December 2019 amounted to £2,401,970, of which £1,045,577 was included with non-controlling interests. Following the acquisition, ProAxsis will be fully consolidated within the Group, with no amounts included with non-controlling interests, and operate as a separate subsidiary.
IXICO 90.5p £42.6m ()
The data analytics company delivering insights in neuroscience, announces that it has entered into an agreement with NYU Langone Health to support a trial to determine if the immunosuppressant drug Sirolimus – approved by the FDA to prevent organ transplant rejection and for the treatment of a rare and progressive lung disease called lymphangioleiomiomatosis – is also able to slow the progression of disease in people with Multiple System Atrophy (MSA). Working with NYU Langone clinicians and researchers, the trial will help develop biomarkers for MSA from magnetic resonance imaging (MRI).
49p £17m ()
Update concerning progress with proof of concept for a COVID-19 test that Paraytec Limited is conducting with the University of Sheffield.
As announced on 5 October 2020, proof of concept was achieved for the Optical Detection System. Since then the focus of the Proof of Concept trials have has been on the Capture & Signal Generation Modules.
Braveheart is now pleased to confirm that Proof of Concept has now been achieved for the Capture & Signal Generation Modules, which successfully completes the Proof of Concept trials. The directors of Braveheart believe that this test will be the first to combine a rapid result with very high detection sensitivity. Work will now turn toward the acquisition of clinically relevant data, to facilitate optimisation of the functional capabilities of the test, together with a programme of product refinement and development. Meanwhile, regulatory approval for live virus trials and the acquisition of clinical data is being sought.
DeepMatter 1.93p £17.8m ()
The company focusing on digitising chemistry, has secured contracts with five new major customers over the last two months for its powerful computer aided synthesis design tool, ICSYNTH. In total, ICSYNTH customer numbers have more than doubled through the course of 2020, and the Company has achieved 100% customer renewals, adding to the Group’s underlying revenue base. The new customers include some of the world’s leading multi-national pharmaceutical, agrisciences, biotech and contract research organisations (CROs). Retrosynthesis is a growing area of the Life Sciences Research & Development space, providing an increasing opportunity for ICSYNTH.
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.