Latest News

Small Cap Wrap – Red Rock Resources; Gfinity; Gaming Realms and more…


2  Feb 2021



*A corporate client of Hybridan LLP


Dish of the day

VH Global Sustainable Energy Opportunities plc, (GSEO.L) a closed-ended investment Company focused on making sustainable energy infrastructure investments has arrived  on the Official List (Premium) of the Main Market of the London Stock Exchange raising £242.6m

Moonpig Group (LON:MOON) has  joined the  main market.  The retailer of curated gifts and personalised cards is targeting less than 2.0x net debt to EBITDA as at 30 April 2021. Mkt Cap at 350p c.£1.2bn. £20m primary and £491.2 sale of existing shares.

Off the menu

McCarthy & Stone has left the main market following a takeover.

What’s cooking in the IPO kitchen?

Dr.Martens—Offer Price set at 370 pence per Share . Due 3 Feb.   Dr. Martens’ total market capitalisation at the commencement of conditional dealings on the main market of London Stock Exchange will be approximately £3.7 billion based on the Offer Price. Partial sale by existing shareholders. No new monies being raised. Total offer size of £1.295 billion 

Foresight Group , the award-winning infrastructure and private equity investment manager  to IPO on the Main Market (Premium). The Offer will primarily comprise a sale of shares by existing shareholders (c.80% of the Offer) with a smaller offering of new shares (c.20% of the Offer) to be issued by the Company. Details TBA.

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.


Banquet Buffet

Red Rock Resources 1p  £9.73m (AIM:RRR)

Update in respect of Red Rock Australasia Pty Ltd (RRAL) a joint venture company with gold exploration interests near the historic mining centre of Ballarat in the Gold Fields of Victoria. Red Rock owns 50.1% of RRAL, with 49.9% being owned by Power Metal Resources plc (AIM:POW).  

Key points

· The 133 sq km “Blue Whale” license south and east of Ballarat (EL007271) has been granted

· The 74 sq km “Blue Chip” license west and south of Ballarat (EL007281) has been granted

· The 8 sq km “Blue Ribbon” license north of Ballarat (EL007285) has been granted

· All licenses are granted for a period of five years

· Red Rock is one of four applicants for the 148 sq km tenement EL007540 compulsorily surrendered by the owners of the Ballarat mine


IDOX  53.9p  £239m (AIM:IDOX)

The supplier of specialist information management software and solutions to the public and asset intensive sectors reported its audited financial results for the year ended 31 October 2020.

· Revenue increased by 4% to £68.0m (2019: £65.5m).  Recurring revenue increased by 5% to £37.4m (2019: £35.7m). Order book for contracted software and services up 31% to £15.9m (2019: £12.1m). Adjusted EBITDA increased by 36% to £19.6m (2019: £14.4m). Adjusted EBITDA margin improved to 29% (2019: 22%). Cash conversion of Adjusted EBITDA to net cash from operating activities improved to 109% (2019: 86%). Free cashflow of £11.2m (2019: £4.4m). Adjusted EPS for continuing operations increased by 39% to 1.81p (2019: 1.30p).

· Net debt at 31 October 2020 down 39% at £16.1m (2019: £26.4m). Final dividend of 0.3p per share (2019: £Nil) declared, in line with the stated intention to restore dividend payments.

· Significant improvements in H2 orderbooks compared to H1, including EIM orderbook, carried into FY21 up over 50% on FY20.

· Combination of recurring revenue and growing order book provides good visibility for current year revenue outlook.

· FY21 year-to-date trading in line with expectations.


Gfinity  4.625p  £36.8m (AIM:GFIN)

The esports and gaming solutions provider, today provides an update on first half performance for the financial year ended 30 June 2021.

Gfinity has continued to build on the positive performance announced at its AGM update on 18 December 2020. The Company delivered a strong performance in December, building on the month-on-month profitability reported in October and November. As a result, on an adjusted EBITDA basis, Gfinity was profitable for the final quarter of the 2020 calendar year. Whilst this is a strong performance, the Company notes that due to the project-based nature of the Company’s revenue streams and some seasonality in the business in the short term it does not imply the Company will always be profitable on a monthly basis going forward.

At the half year (31 December 2020), the Company’s cash position was £1.7m, slightly ahead of the cash position of £1.6m as at the end of the financial year (30 June 2020).


MelodyVR Group 3.05p  £76.5m (AIM:MVR)

The music company and operator of the MelodyVR and Napster platforms, announced key contract renewals with Napster’s business to business partners and release metrics for the Napster platform for the year ending 31 December 2020;

· Amendment to the platform services agreement with SONOS, one of the world’s leading sound experience brands, covering the expansion of ad-supported SONOS Radio in 14 new territories (UK, Ireland, France, Germany, Italy, The Netherlands, Sweden, Switzerland, Austria, Belgium, Denmark, Norway, Australia, New Zealand).  

· Renewal of the technology and platform services agreement with Panasonic Corporation (Japan) to March 2022, providing application development and integration of Napster services with Panasonic’s HomeX smart home music services;

 · Renewal of the digital media services agreement with Telefonica Germany to December 2022, including a 2-year extension of the Napster music service for O2 subscribers and Aldi Talk service subscribers in Germany.

 These contract renewals are expected to secure revenues of c.$16 million in aggregate over the course of the next 2 years.


Active Energy Group 1.125p  £17.34m (LON:AEG)

The London quoted international biomass based renewable energy and forestry management business, announces, further to the announcement made on 1 February 2021 by the Company, the successful completion of an oversubscribed Placing and PrimaryBid Offer, conditionally raising gross proceeds of £7 million at 1p.

Michael Rowan, CEO of Active Energy, said: “The Fundraise and the CLN Restructuring represent significant milestones for AEG and will allow AEG to progress and accelerate its business plans for CoalSwitch™ and the Lumberton site. Construction work is underway to complete the commissioning of the up to 5tph reference plant and to fulfil our first order for the Coalswitch™ product to PacifiCorp. The principal focus is to develop the unique Lumberton opportunity and establish a significant production facility at the Site in North Carolina. In the long term, the Company aims to build a business that is a global provider in next generation biomass solutions and services. We look forward to providing all stakeholders with regular updates within the coming weeks as we progress towards commercialising and producing AEG’s next generation biomass products.”


Gaming Realms 32.6p  £93.6m (AIM:GMR)

The developer and licensor of mobile focused gaming content, announced its entry into the Italian market through its collaboration with a number of top tier Italian gaming operators. Gaming Realms’ platform and portfolio have been fully certified for entry into the Italian regulated gaming market by L’Amministrazione Autonoma dei Monopoli di Stato.

Via SG Digital’s Opening Gaming System (OGS) platform, Gaming Realms’ Slingo Portfolio is now live in the Italian market with iGaming operators Goldbet and Sisal Group, and will be going live with Lottomatica later in February.


Spectra Systems  180p  £80.16m (AIM:SPSY)

Spectra Systems Corporation, a leader in machine-readable high speed banknote authentication, brand protection technologies, and gaming security software has executed an agreement with its central bank customer concerning the second phase of the sensor development originally announced on 21 October 2020.  This $5.6 MM revenue second phase follows the $1.9MM first phase development.



The life sciences, technology, investment and commercialisation company, announces that it has a notification obligation pending in respect of one of its portfolio companies. However, the Company is currently not in a position to issue the notification, and as such it has therefore requested suspension of trading in its ordinary shares on AIM pending the release of said notification.

Accordingly, trading in the Company’s ordinary shares on AIM will be suspended with effect from 7.30 a.m. today. Trading will remain suspended until the notification is released to the market.


Lexington Gold 3.15p  £8.24m (AIM:LEX)

The gold exploration and development company with projects in North and South Carolina, USA, is pleased to announce an update on its ongoing operational activities.  

· Contract signed with an experienced local drilling company for an initial minimum 610m diamond core drill programme at the Jones-Keystone-Loflin Project

· All requisite environmental approvals for the preparation of the drill sites and drilling programme have been received.

· The initial drilling campaign will focus on the south-western (Loflin) side of the JKL Project.

· Six holes are planned by way of infill drilling in order to expand on and confirm the findings of historical third-party drilling undertaken on the Loflin property.

· The Company has incorporated the historical third-party drilling information from JKL into a 3D model that was used to plan the current drilling campaign

· Drilling is planned to commence later this month once the operating crew for the diamond drill rig become available from other third-party projects they are working on

· Geotech Airborne Geophysical Surveys has completed the processing of the VTEM survey geophysical data captured in December 2020 and the Company is currently undertaking the interpretation and modelling of this data.

· A fixed-wing airborne geophysical survey has commenced over the JKL, Carolina Belle and Argo Projects in North Carolina


Draper Esprit 748p  £1,040m (AIM:GROW)

Draper Esprit notes yesterday’s announcement from UiPath Inc., the robotic process automation software business, of its successful $750 million fundraising round at a $35 billion valuation. 

The round was led by Alkeon Capital and Coatue, with Altimeter Capital Management, Dragoneer, IVP, Sequoia Capital, Tiger Global Management and funds advised by T. Rowe Price Associates Inc. also participating. 

UiPath provides a comprehensive robotic software solution for IT-based process automation of legacy processes and is one of the fastest-growing enterprise software companies in the world. 

Draper Esprit originally acquired its holding in UiPath in January 2019 through the acquisition of interests in Earlybird Digital East Fund I. 

Based on the valuation implied by the fundraising, Draper Esprit’s gross fair value (before carry deductions) is approximately £115 million (using a GBP/USD 1.37 exchange rate). This is an uplift of £78 million to the September 2020 fair value of £37 million.


Head Chef

Derren Nathan

0203 764 2344

[email protected]


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.

Malcy’s Blog – Wentworth Resources; Bahamas Petroleum and Jersey Oil & Gas

Previous article

FTSE 100 moves ahead at a solid pace, Wall Street breaks into a run

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News