Hybridan Small Cap Feast 03/05/22

Joiners: No Joiners Today. Leavers: Harrogate Group has left the Aquis Growth Market. What’s cooking in the IPO kitchen? Altona Rare Earths, the AQSE listed mining exploration company focused on the evaluation, acquisition and development of Rare Earth Elements mining projects in Africa, intends to join the Main Market. Admission to trading of the Company's Ordinary Shares on the AQSE Growth Market will be cancelled simultaneously with Admission. It is also proposed that on Admission, the Compan

Results bring welcome detail and no surprises

Operating expenses excluding share-based payment charges decreased to £6.0m from £6.4m in FY 2020, as a result of the lower clinical trial expense after the XF-73 Phase 2b study. The operating expenses included R&D costs of £3.7m, which came in under our £3.8m estimate, and £2.3m in other operating costs (£4.5m and £1.9m in FY 2020, respectively). Destiny’s confident FY 2021 results presentation should have left investors in no doubt that the Phase 3 studies and commercialisation of its two pro

Morning Note – 12 April 2022

Destiny Pharma - Full-year results – looking to partnering deals

Destiny’s full year 2021 results contained no surprises given our recent update that accompanied its fundraising in March. The company reported a statutory pre-tax loss of £6.3m (adjusted loss of £5.9m vs. our £6.1m estimate) driven by a 4% decrease in operating costs to £6.3m. Period-end cash of £4.65m (vs. £9.7m at 31 December 2020), together with a £6.5m fundraise in March 2022, provides a runway into mid-2023. With several companies active in the NTCD-M3 data room, we look forward to the com

Hybridan Small Cap Feast 31/03/22

Joiners: Probiotix Health plc has joined the Access Segment Aquis Stock Exchange Growth Market. ProBiotix develops probiotics (live microbes that, when ingested, can alter the composition of the microbiome, and improve human health) to tackle cardiovascular disease and other lifestyle conditions which are affecting growing numbers of people across the world. £2.5m raised at 21p. Mkt Cap c. £25.5m. Leavers: No Leavers Today. What’s cooking in the IPO kitchen? First Tin plc, a tin development comp

NTCD-M3 competitors stumble while issue approved

Destiny Pharma has successfully raised £6.45m in a Placing, Subscription, and Open Offer which, apart from funding the further preparation of its two lead assets for the Phase 3 studies, puts Destiny in a stronger position in licensing negotiations. Pfizer’s C.difficile toxin vaccine to prevent CDIs failed this primary endpoint in Phase 3. This shows that the prevention of not every infection is tractable by traditional vaccines. For novel and more difficult indications like CDIs, new approach

Morning Note – 9 March 2022

Destiny Pharma - Placing raises £6m with Open Offer up to £1m

Destiny Pharma has raised £6m with up to £1m possible via an Open Offer to progress its two lead assets towards the start of Phase 3 clinical studies and advance commercial partnership discussions. These funds are expected to take the company to key value inflection points (e.g. a partnering deal for the Phase 3 study and commercialisation of NTCD-M3 and progression of XF-73 to a point where we have final clarification from the FDA/EMA as to Phase 3 study design), which is considered a requisite

Fundraising to bolster its positioning

Destiny have announced a conditional fundraising at 50p per share that includes a placing, subscription and Open Offer that could in total raise up to £7.0m. With the raised level of uncertainty in the markets and the ongoing partnering of Destiny’s two Phase 3-ready assets, the Board decided to proceed with the fundraising so as not to delay the activities on its two lead assets. Just as importantly, reinforcing its balance sheet should strengthen its negotiating position with potential partner

Hybridan Small Cap Feast 08/02/22

Joiners: No Joiners Today. Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Following Nvidia’s decision to walk away from its planned US$40bn takeover of Cambridge-based chip designer Arm from Japan’s Softbank, after regulatory hurdles proved insurmountable, speculation is growing over a potential return to the London Markets. GCP Co-Living REIT plc, intends to float on the Main Market. The Company is a newly established, externally managed investment company, which it is intended w

Morning Note – 8 February 2022

Very welcome regulatory clarity

Destiny Pharma has announced details of positive feedback from the European Medicines Agency (EMA) on the proposed Phase 3 programme for one of its two Phase 3-ready products, XF-73 for the prevention of post-surgical staphylococcal infections: • the successful completion of the proposed Phase 3 clinical programme is expected to lead to the registration of XF-73 nasal gel in Europe. While the number of patients in the study and the number of separate trials in the programme have not been disc

Morning Note – 1 February 2022

M3's profile rising further

In a spree of positive updates to start 2022, Destiny Pharma begins the year with the profile of anti-infectives continuing to rise after the recent Lancet publication, the advancing regulatory preparations on the Phase 3 studies of its two lead products, and partnership discussions all aligning. Destiny’s most recent announcement on the compatibility of M3 should increase its attractiveness to potential partners. The recent announcement of the preclinical studies conducted by the US Departmen

Cenkos: Healthcare Sector - Ward Round

Weekly round-up of AIM-listed healthcare news. Venture Life Group, GENinCode, Kromek, Alliance Pharma, Polarean Imaging, Benchmark Holdings, Ondine Biomedical, Verici Dx, Faron Pharmaceuticals, Avacta Group, Abingdon Health, Open Orphan, Belluscura, Hutchmed (China), Oxford Biodynamics

LIBERUM: Futura Medical* - Strategy on track, FM71 data in Sept

Shield Therapeutics - FY results: focus on funding and growing the US

Full-year results were in line with the preliminary guidance issued in early 2022. Feraccru revenues in Europe increased with a 60% increase in volumes and the US commercialisation of Accrufer continues, with broader insurance coverage (100m lives covered). As with many small cap companies, access to growth capital is currently difficult; however, the group has raised a $10m loan from a major shareholder providing a cash runway till end-2022. Our assumption is that further funding comes from deb

SHORE CAPITAL - Warpaint London+ (W7L) - House Stock at 113p

Record H1 as distribution widens and offer resonates

Trading continues to track ahead of expectations, which have been upgraded twice so far YTD. There is clear evidence the growth strategy is bearing fruit. Distribution gains are increasing brand reach both in the UK and overseas. This appears to be an ideal time for its on-trend value-for-money proposition to gain traction, potentially with counter-cyclical characteristics as consumers start trading down. After the recent pull-back, valuation is undemanding for a 3-yr EPS CAGR of 13% with risk p

Cenkos: OptiBiotix Health Plc -- Final results

OptiBiotix has reported final results for the year to December 2021, with revenues growing 45% to £2.2m and the EBITDA loss increasing to £1.0m, reflecting the increased investment in the business. Post-period end, OptiBiotix has continued to return value to shareholders through the successful spin-out and listing of its ProBiotix Health division. Future growth of the company is supported by commercial agreements with large partners and a substantial pipeline of opportunities through its 2nd gen

Morning Note – 30 June 2022

Next Gen XPLOR and D2C

Belluscura has announced the launch of the next generation X-PLOR portable oxygen concentrator and expanded distribution through a D2C offering and partnership distribution plan for smaller DMEs.

Hybridan Small Cap Feast 30/06/2022

Dish of the day Joiners: Visum Technologies has joined the AQSE Growth Market. The Company's business is to own and operate an "on-ride" video and photographic camera system that it sells and/or licenses to customers (being theme parks, ride manufacturers, souvenir imaging providers, and other leisure operators). Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Compan

SHORE CAPITAL - Oxford BioDynamics+ (OBD) - House Stock at 16p

Hybridan Small Cap Feast 20/06/2022

Joiners: No Joiners Today. Leavers: Tungsten Corp and Sensyne Health have both left AIM. Hibernia REIT has left the Main Market. What’s cooking in the IPO kitchen? Visum Technologies seeking admission to The AQSE Growth Market. The Company's business is to own and operate an "on-ride" video and photographic camera system that it sells and/or licenses to customers (being theme parks, ride manufacturers, souvenir imaging providers, and other leisure operators). Due 30 June. LifeSafe Holdings, a fi

CMA conclusion; small bolt-on; and in line trading

An update from CVS this morning covering conclusion of the CMA process, a further acquisition and update on trading. The CMA investigation into the acquisition of Quality Pet Care (QPC) is now complete, thereby bringing to an end a 9 month process. As part of the undertaking, CVS yesterday completed the sale of QPC for cash proceeds of c.£9m, implying a c.£12m impairment. Whilst the CMA episode has clearly been a setback, it does not seem to have fundamentally impaired ongoing M&A ambitions give

Positive AGM statement

The strong momentum from Q4-21 has continued into H1-22, with revenues expected to be up by more than 22% YoY. The outlook remains positive supported by strong industry demand and market share gains in the UK, where the group’s sustainability and affordability credentials are increasingly resonating. Whilst some macro pressures remain, these look to be manageable. We therefore make no change to our forecasts at this stage, but are highly encouraged by current trends and remain optimistic for the

LIBERUM: SourceBio International* - Scaling growth and trading well

Continued growth and margin improvement prompt further upgrades

A positive AGM update confirms strong revenue growth has continued YTD and further margin improvement means management again expect EBITDA to be materially ahead of expectations. The business model is now settled, with additional distributors appointed in the US which should help drive further penetration into the Primary Care market there. China revenues were strong and with no sign yet of any slowdown, despite being cognisant of renewed lockdowns there. Gross margins have remained robust on po