ISDX
BWA Group (BWAP) is still seeking a reverse takeover target. Trading in the shares has recommenced after a potential reverse takeover, where talks started 12 months ago, fell through. A settlement has been agreed with the potential target which will lead to a cash inflow of £76,311 for BWA. This will be recognised in the year to April 2016. The NAV was £526,000 at the end of October 2015. At 0.45p (0.3p/0.6p), BWA is valued at £505,000.
Goldcrest Resources (GCRP) has terminated its option agreement over the Zamsa exploration licence in Ghana. The focus is gold projects in southern Ghana. At 0.06p (0.05p/0.07p), Goldcrest is valued at £1.3m. Gavin Burnell has resigned as chairman, while Callum Baxter has moved to non-executive director.
Property investment company Ace Liberty & Stone (ALSP) is already starting to use the cash raised in the recent fundraising and it has raised a further £850,000 from the sale of Princegate House in Doncaster. Princegate House was purchased in 2013 for £694,000 and Ace is retaining the car park. Ace has bought two industrial estates in Plymouth and two residential properties in London – one of which has been bought from a director. The industrial estates cost £3.5m and generate annual rents of £205,000. The two residential properties cost a total of £4.2m – partly payable in shares at 3p each. At 4p (3.5p/4.5p), Ace is valued at £38.8m. The heavily discounted open offer price was 1p a share.
Western Selection (WSE) has increased its stake in AIM-quoted Bilby following its recent placing that raised £5m at 118p a share to help finance two acquisitions for its gas and building services business working for social housing and local authorities. Western Selection invested a further £545,000 and owns 5.9% of Bilby. At 47.5p (45p/50p), the investment company is valued at £8.5m. There was one deal last week at 45p a share.
AIM
Sports Direct International has taken a 6% interest in Goals Soccer Centres (GOAL). Sports Direct already owns nearly 1% of the five-a-side football pitches operator but it has added a contract for difference over more than 5% of the share capital.
OptiBiotix (OPTI) continues to sign deals for its technology based on the human microbiome. The latest is with health and nutrition company Royal DSM. This is a joint development agreement to develop new products using the OptiBiotic platform. A study shows that the company’s cholesterol-reducing product has reduced cholesterol levels by an average of 7.2% in the study group. Commercial discussions with potential partners are ongoing. There was £2m in the bank at the end of November 2015 and since then £2.5m has been raised. This gives OptiBiotix, whose monthly cash outflow is relatively modest but rising, an excellent financial base from which to pursue other deals while it awaits revenues from the first commercial product.
Acquisitions helped hostels operator Safestay (SSTY) to more than double its revenues to £4m in 2015 but there was organic growth in that figure. The Elephant & Castle hostel continues to improve its performance. This year there will be 12 month contributions from the Edinburgh and Holland Park sites. NAV is 48p a share.
Stephen Roberts has resigned from the board of China-focused investment company Grand Group Investment (GIPO). Roberts stated: “It has been a great pleasure working with my fellow Board members Jay Newman and Mark Hemmann, and I wish them and Grand success in the future.” The other members of the Grand Group board were Mr Yang Xiao, Mr Zhou Jiang, Mr Li Chuang and Ms Gu Yingying, although Ms Gu Yingying subsequently resigned.
MAIN MARKET
Bluebird Merchant Ventures Ltd (BMV) finally joined the standard list on 13 April. The flotation was originally foreshadowed at the end of 2015 and it raised £1.49m (after expenses) at 5.75p a share. The Philippines-focused firm has interests in a potential gold mine and copper concentrate trading. The share price ended the week at 4.63p. The prospectus is available at www.bluebird.com.ph.
Tex Holdings (TXH) reported flat revenues of £36m for 2015 but pre-tax profit improved from £1.18m to £1.49m. This was mainly due to a strong performance from the engineering division. NAV was £9.44m at the end of the year. Net debt was £2.9m. A special dividend of 15p a share was paid last November. Excluding that, the total dividend was increased from 6p a share to 7p a share. This year has started strongly overall, although the plastics business is sluggish.
ANDREW HORE