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Alan Green talks Avacta #AVCT, Catenae Innovation #CTEA, Rambler Metals #RMM & Tertiary Minerals #TYM on Vox Markets podcast
Alan Green discusses Avacta #AVCT, Catenae Innovation #CTEA, Rambler Metals #RMM & Tertiary Minerals #TYM with Justin Waite on the Vox Markets podcast. Interview is 14 minutes in.
Ian Pollard – HSBC Profits Up 31%
HSBC Holdings plc HSBA saw first quarter profits rise by 31% from $4.8bn in the first quarter of 2018 to $6.2bn this year following strong growth in Asia and a 7% rise in revenue compared to the previous year. Cuts in costs also helped with operating expenses down by 12% during the first quarter, whilst earnings per share rose 40% to 21 cents. The bank said its most challenging priority was to achieve a turnround in the US”.
Smurfitt Kappa Group plc SKG has delivered a very strong start to the year with first quarter EBITDA up by 25% year-on-year. first quarter organic corrugated volume growth in Europe was 2% and 3% in the Americas as the company built on its established strengths of customer-focused innovation, an integrated operating model and its ever expanding geographic reach, which was extended during the quarter with acquisitions in Bulgaria and Serbia.
Ultra Electronics Holdings ULE will report at todays AGM that further positive developments in its order book is producing positive early results and The Board is confident that 2019 will be a year of good underlying progress.
Rambler Metals & Mining plc RMM announces a banner year for operations in several areas, with record throughput for the year to the end of December 31, 2018. which saw 364,176 tonnes of ore processed from the Ming Mine. This was the second consecutive year in which the Company set a new throughput record.
Intercontinental Hotels Group IHG has delivered strong first quarter results against strong results in the previous year, Good growth was achieved in the US which out performed the industry and continued market share gains were made in China. 12,000 rooms were opened in the quarter, the highest first quarter openings in a decade, including the 400th hotel in Greater China.
Beachfront villas & houses for sale in Greece; http://www.hiddengreece.net
Andrew Hore Quoted Micro 1 April 2019
NEX EXCHANGE
Brewer Adnams (ADB) increased its revenues last year, but it reported a loss. Beer volumes grew by 2.2% and revenues were 6% ahead at £78.9m. The loss of £877,000 was after £1.77m of pension and property impairment costs. The final dividend is unchanged at 150p per B share. Adnams is optimistic about the proposed government review into small breweries relief – if Adnams paid the same duty rates as small brewers it would save £7m a year.
European Lithium (EUR) is making progress with its definitive feasibility study for the Wolfsberg lithium project in Austria. The plan is to produce lithium chemical for batteries. A test programme has been completed and this is designed to improve grades and the amount of lithium-bearing mineral. Laser sorting was found to be the best method.
Capital for Colleagues (CFCP) has increased its NAV by 9% to 48.05p a share in the six months to February 2019.
Trading in the shares of Block Commodities (BLCC) has restarted following the publication of its interim results. There was $1,000 in the bank at the end of 2018 and a further $400,000 has been raised via a convertible loan. This will fund the entry in the cannabis market. Block is collaborating with Hexis Lab to develop cannabis-based therapeutic and cosmeceutical products
Altona Energy (ANR) has net assets of £11m, but these are predominantly intangible assets. There are also £19.8m of potential tax losses. Altona is re-evaluating its underground coal gasification project in South Australia and assessing an investment in a Chinese vanadium mine.
MetalNRG (MNRG) plans to move to the standard list. An option agreement has been replaced with a farm-in agreement for the Kamushanovskoye uranium deposit. This will reduce the immediate cash outflow. A $161,000 payment was made under the option agreement and $400,000 more has to be paid by 10 April to earn a 51% economic interest. This payment is conditional on a capital raising at the time of moving to the standard list. A further $1.99m investment is required in three equal tranches in order to maintain the stake. The payments are due in November 2019, April 2020 and October 2020.
Walls and Futures REIT (WAFR) outperformed the MSCI UK Residential Property index last year, because it achieved 8.75% growth, compared with 5.2% for the index.
The net liabilities of Welney (WENP) increased from £234,000 to £301,000 in 2018. This is being funded by loans from directors. Costs have been kept low as management seeks a suitable acquisition.
Sport Capital Group (SCG) has issued 800,000 shares at 0.625p each to pay for adviser fees on the unwound acquisition of Palermo FC.
AIM
Churchill China (CHH) improved margins last year. Revenues were 7% higher at £57.5m, but underlying pre-tax profit was 26% higher at £9.4m. Growth in exports is a major factor and they account for three-fifths of revenues. Retail sales fell and hospitality sales increased by £5m. The total dividend was raised from 24.6p a share to 29p a share. There was £14.4m in cash at the end of 2018.
Cloud-based communications software provider Cloudcall (CALL) increased recurring revenues by one-third last year and total revenues were 28% ahead at £8.8m. The fastest growth was in the US. The cash outflow from operations increased from £1.57m to £2.38m. This is due to higher operating costs in terms of product development and marketing.
Frontier IP (FIPP) has increased the value of its portfolio of investments by 27% to £11.5m in the six months to £11.5m. NAV is 38.8p a share. The deal by investee company Exscientia, which is involved in AI-based drug discovery, with Celgene Corporation should result in a substantial uplift in its valuation in the current six month period.
Parity (PTY) says it has lost a major contract with the Scottish government, but it should not have a significant effect on profit because it is low margin. This year’s revenues will be 10% below expectations. The 2018 results will be announced on 16 April.
Rambler Metals and Mining (RMM) has launched a one-for-one open offer to raise up to £1.7m at 1.4p a share and it closes on 12 April. This follows the £8.4m placing at 1,4p a share, which raised cash to pay off debt and provide working capital.
Alliance Pharma (APH) improved its pre-tax profit from £23.9m to £28.1m. This excludes a £1.9m write down of an acquired intangible relating to a manufacturing supply contract. A pre-tax profit of £32.8m is forecast for 2019.
Quixant (QXT) reported a strong second half to 2018 even though the gaming machines market was tough. Full year revenues were 5% higher at $115.2m and pre-tax profit improved from $17.7m to $18.2m. This year will also be second half weighted with revenues expected to hit $119m and pre-tax profit of $20m forecast.
MAIN MARKET
Funds managed by Epiris LLP have launched a recommended cash offer of 193p a share for Ireland-based financial services group IFG (IFP), valuing it at £206m.
Ovoca Bio (OVB) is increasing its stake in IVIX to 59.9%. The additional 9.9% costs $2.04m. IVIX’s drug Libicore has met the pre-specified primary efficacy endpoint and significant outcomes in secondary endpoints as part of its phase 3 clinical trial for the treatment of hypoactive sexual desire disorder.
Standard list shell Baskerville Capital (BASK) still had £1.54m in the bank at the end of 2018. Potential technology acquisitions are being assessed.
Blockchain Worldwide (BLOC) is still seeking an acquisition after the deal to buy Chorum fell through due to weak stockmarkets. There was £1.21m in the bank at the end of 2018.
Andrew Hore
Quoted Micro 1 January 2018
NEX EXCHANGE
Commercial property investor Ace Liberty and Stone (ALSP) has launched an open offer of convertible notes and warrants to raise up to £4.85m. The conversion price is 25p a share, while the warrants are exercisable at 80p a share. The closing date is 22 January.There are already commitments for £3.01m. Additional cash is required to make more property purchases.
Good Energy (GOOD) chairman John Maltby has invested £100,000 in the renewable energy supplier. He acquired 58,000 shares at 173p a share.
In the six months to September 2017, Via Developments (VIA1) increased its operating income from £309,000 to £557,000 but still made a small loss. There were net liabilities at the end of the period.
Positive Healthcare (DOC) made a maiden profit of £64,000 on revenues of £4.67m in the six months to September 2017. The year end is being changed to March. The healthcare staffing business continues to control costs.
Technology company incubator Milamber Ventures (MLVP) reported an increase in interim loss from £196,000 to £263,000. Milamber has launched the Milamber Education Technology Fund and has completed the acquisition of healthcare training company Essential Learning. The education sector will be increasingly important to Milamber.
Hot Rocks Investments (HRIP) reported a decline in NAV from £901,000 to £853,000 in the year to September 2017. Hot Rocks has 14 investments in oil and gas, mining and pharma companies.
AIM
Stanley Gibbons (SGI) put out its interim results just before the end of the year, thereby avoiding suspension. In the six months to September 2017, revenues fell from £17.3m to £16.6m, while the loss fell from £6.36m to £3.09m. The stamps business continues to lose money and the profit from coins was lower.
Avanti Communications (AVN) was another company bringing out results just days before trading in shares would have been suspended. The satellite communications operator’s revenues fell from $82.8m to $56.6m. There was net debt of $562m at the end of September 2017, which was before the refinancing plans. David Williams will step down as chief executive after March.
Telit Communications (TCM) says that its main bank has granted a waiver for breach of covenants at the end of 2017.
Parallel Media has completed the acquisitions of Brick Live and Parallel Live for £10m and changed its name to Live Company Group (LVCG). The previous businesses have been sold. There was £1.26m raised at 30p a share and £2.03m of debt was capitalised.
A net gain on its investment portfolio enabled Legendary Investments (LEG) to report an interim pre-tax profit of £248,000. The gain was on the stake in business services software supplier Virtual Stock Holdings. There was a net cash outflow from operations of £28,000. The NAV was £5.22m at the end of September 2017.
Clear Leisure (CLP) is injecting its 4.53% stake in 3D mapping company Geosim Systems Ltd into a new subsidiary company that will also be launching a joint venture called Miner One to develop bitcoin mining blockchain data centre. Clear Leisure will invest €200,000, lent by Eufingest, a 10% plus shareholder in Clear Leisure, for 50% of the joint venture. The new subsidiary will be used to acquire other IT business and could eventually be spun-off in order to gain its own quotation.
Thor Mining (THR) has appointed exploration manager Richard Bradley to the board. The definitive feasibility study for the Molyhil tungsten/molybdenum project should be finalised in the first quarter of 2018. A mineral resource estimate is expected for the Kapunda copper project is due early in the year.
Clean water technology company HaloSource (HAL) says that the Chinese government has halted production facilities in the region that supplies its glass pitchers so fulfilment of orders for JiuBan will be delayed. This means that 2017 revenues will be up to $3m and the loss will be up to $5.5m. There should be revenues of at least $840,000 from JiuBan in 2018.
Alliance Pharma (APH) has completed the purchase of Vamousse from TyraTech Inc (TYR) for an initial $13m plus additional payments of up to $4.5m. The human head lice treatment has been developed by TyraTech and it has built up Vamousse as an international brand. The deal is earnings enhancing for Alliance and provides TyraTech with the cash to develop animal health products. TyraTech launched a tender offer of up to $8.5m. The tender offer price is 3p a share. Alliance will be able to distribute Vamousse through its existing European and international partners.
Kestrel Partners is building up a shareholding in STM Group (STM) and just before Christmas it took its stake to 3.72%.
Oil re-refiner HydroDec Group (HYR) has extended the repayment date of three facilities to the end of 2018 and one of them has been increased by £500,000. The facilities are provided by director Andrew Black.
Oracle Power (ORCP) has raised £621,000 at 2.3p a share and broker Brandon Hill has exercised warrants at 0.65p each, which raised £150,000.
Silence Therapeutics (SLN) has sold further shares in Arrowhead Pharmaceuticals, taking the total sale proceeds to £17.2m ($23m). The total cost of the Arrowhead stake was £9.2m ($11.3m) and Silence still owns 472,509 shares.
TechFinancials Inc (TECH) will invest $200,000 for a fully diluted 2% stake in Cedex Holdings, a Blockchain-based diamonds exchange. There is also an option to acquire a further 90%, fully diluted, stake at an exercise price of $40,000. These stakes could be diluted by other share issues.
Copper and gold producer Rambler Metals and Minerals (RMM) has amended its offtake agreement with Transamine Trading, which is making a $4m advanced payment in return for a right of first refusal on any offtake agreement for five years from January 2022. The advance payment plus interest is repayable over 18 months. The phase II expansion is nearly complete and this will extend the mine life by 20 years.
EQTEC (EQT) has completed the acquisition of Eqtec Iberia for £14m in shares just over five months after it was announced. The acquisition owns the EGT gasification technology. EQTEC also raised £1.6m at 0.65p a share.
China New Energy Ltd (CNEL) is holding general meeting on 17 January In order to gain permission to buy back up to 20% of the shares in issue. This could benefit the share price, which currently has a modest rating given the profitability of the business.
New Trend Lifestyle Group (NTLG) is selling its remaining China-focused business for £100 and concentrating on Singapore. The Feng Shui business continues to trade poorly and is seeking acquisitions in Asia.
Xeros Technology (XSG) has completed its £25m placing at 225p a share. The polymer technologies developer will use the cash to further develop cleaning, tanning and textile technologies.
Gresham House (GHE) is selling its Newton-le-Willows property for £2.1m. The completion of the sale of legacy assets will have raised more than £18m. Gresham House should qualify for IHT exemption.
Summit Therapeutics (SUMM) is acquiring Discuva, which is a developer of antibiotics using a bacterial genetics based platform. Summit is paying £5m in cash and £5m in shares for Discuva but no employees will be taken on. Summit will still have enough cash to last it until the end of 2018.
Aquatic Foods Group (AFG) has been unable to publish its accounts and it has lost its AIM quotation.
URU Metals Ltd (URU) had £1.84m in cash at the end of September 2017. The first drill results for the Zebediela nickel and copper project in South Africa have been published and the drill results for the most recent three holes are due in January. URU also has a 9.7% stake in AIM-quoted Management Resource Solutions (MRS).
Draper Esprit (GROW) has made a gain of £7.2m on its stake in Clavis Insights, having originally invested £8.1m in December 2016. This gain will add 3p a share to NAV. Clavis, which is an e-commerce data analyser, was acquired by Ascential for $119m.
Windar Photonics (WPHO) has received a new order from its Chinese distribution partner for five WindVision LiDAR systems. Windar has already delivered 50 systems.
MAIN MARKET
World Trade Systems (WTS) has reached agreement with Germany-based Naturemed and related companies about the commercialisation of its personal hygiene and healthcare products and it will also help to obtain Chinese registration for them. WTS has signed a five year lease on a London office. Shares in WTS are still suspended.
Over the top video streaming business Falcon Media House (FAL) made initial revenues of £232,000 in the six months to September 2017. The interim loss was £2.71m. Since then, £3.4m has been raised from a convertible loan note issue.
Rockpool Acquisitions (ROC) still has nearly £385,000 in the bank. Negotiations are continuing concerning the possible acquisition of Greenview Gas Ltd.
Andrew Hore
Quoted Micro 30 January 2017
NEX / ISDX
There was a sharp improvement in operating profit from £120,006 to £213,657 at Hydro Hotel, Eastbourne (HYDP) in the year to October 2016. Revenues improved from £3.13m to £3.21m, while gross margin jumped from 9.9% to 13.6%. Pre-tax profit rose from £133,576 to £224,352. Improved marketing has helped to boost trade but the hotel will be hit by increases in the national living wage. Further refurbishment is panned at the hotel. Strong cash generation has increased the cash position from £651,000 to £1.39m. The second interim dividend is being raised from 12p a share to 14p a share, taking the total to 21p a share, up from 18p a share.
Rail track technology supplier Wheelsure Holdings (WHLP) reported an increased loss in the year to August 2016 because of higher admin expenses. Pre-tax loss moved from £228,000 to £262,000. Revenues increased by 21% to £290,000 even though London Underground orders have been delayed by budget restrictions. Orders have been received since the year end. Wheelsure has issued shares at 1p in lieu of £14,000 of commission owed to the company’s Italian agent, which has generated the first order for track equipment incorporating Tracksure.
Ashley House (ASH) remained profitable in the six months to October 2016 even though trading conditions were tough and there remains uncertainty about government funding for supported housing. It does appear likely though that there will be increasing demand for extra care housing schemes. Interim revenues were flat at £10.7m and the gross margin was much lower. The underlying pre-tax profit was halved to £200,000. Full year profit is still forecast to rise from £1.2m to £1.5m but this depends on three schemes reaching financial close by April.
Building projects manager and developer Formation Group (FRM) maintained its pre-tax profit at £2.2m in the year to August 2016, even though the recognised profit share from the development at Norwich House in Streatham fell from £2.42m to £1.42m. Group revenues were one-quarter higher at £29.4m helped by sales of apartments at Iverson Road, London N6. There was also a £1.02m post-tax write back relating to past properties. NAV increased from £7.6m to £10.4m. Since the year end, cash has been received from disposal proceeds, which will reduce net debt from £3m.
Mechan Controls (MECP) has appointed administrators from Leonard Curtis to its subsidiary PJO Industrial, following a deterioration in its prospects. PJO supplies mining and pipe laying equipment. Mining demand has been weak. PJO was hit by a bad debt in 2015 and lost £206,000, while net liabilities were £514,000.
Forbes Ventures (FOR) has raised £530,000 from Gravity Investment Group at 0.3p a share. Gravity has a 60.8% shareholding in Forbes. The bulk of the cash will be invested in £500,000 worth of 12%, two-year convertible loan notes in residential care provider Primus Care, where Gravity director Chris Bateman is on the board. The conversion price will be 80% of the fair market value of an ordinary share.
There was further fundraising activity last week. NQ Minerals (NQMI) has raised £125,000 at 7p a share in order to finance working capital. Energy efficiency products supplier Sandal (SAND) has raised £52,000 at 28p a share. Milamber Ventures (MLVP) executive chairman Andy Hasoon has invested a further £16,300 in the technology investment company at 13.55p a share. Property investor Etaireia (ETIP) has generated £10,000 from the issue of shares at 0.09p each.
United Cacao (UCL) has raised further concerns about former chairman Dennis Melka. This involves a number of loans which were not previously disclosed. It also turns out that the small farmer programme has planted 70 hectares and not 194 hectares as said in the interim figures. The Peru-based cacao plantation operator has extended the exclusivity agreement with existing investors, in order to try to secure the long-term financial viability of the business, to 31 March. Cash is being raised from bond issues at large discounts. Just over $515,000 has been raised from the issue of $3.45m of nominal value bonds with a 7% coupon. One of the company’s directors will invest a further $40,000 at 18 cents per $1 bond.
AIM
Scientific instruments manufacturer Judges Scientific (JDG) had a strong end to 2016 and order intake grew organically by 3% during the year. This was too late to benefit the 2016 figures where slow orders and manufacturing problems had led to disappointment and pre-tax profit is expected to fall to £7.1m. Earnings per share will fall by nearly one-quarter to 82.8p a share. That is line with previously downgraded expectations. The year has started with an order book lasting 13.9 weeks and there are positive foreign exchange movements that will help in the recovery. A 2017 pre-tax profit of £8.6m and earnings per share of 102p are forecast, which is still below the level in 2015.
Imaging and radiation detection products developer Kromek Group (KMK) is raising up to £21m via a placing and one-for-30 open offer at 20p a share. Net cash was £2.3m at the end of October 2016 and the additional cash will provide a significant cushion for the company. Kromek is still a couple of years away from making a pre-tax profit but the cash outflow should decline.
Taptica Ltd (TAP) has issued a positive trading statement and this has led to a forecast upgrade for 2016. Earnings per share have been upgraded by 12% to 29.3 cents, which is 150% higher than the forecast was one year ago. Increasing mobile marketing spend by customers means that there should continue to be significant growth.
Beximco Pharmaceuticals (BXP) has formed a joint venture with BioCare Manufacturing in Malaysia. Beximco will own 30% of the joint venture and will provide technical support. The initial product is a metered dose inhaler. Beximco reported a 14% local currency increase in interim revenues but in sterling they rose from £58m to £79.7m, while the growth rate in pre-tax profit was slightly higher with the sterling equivalent rising from £8.2m to £11.6m. The first product is being sold in the US and approvals have been gained for two other products.
Walker Greenbank (WGB) has received a further £1m insurance payment relating to flooding at Standfast & Barracks at the end of 2015. This takes the total insurance payments for the Lancaster fabric printing factory to £14.3m and there could be more to come. The Milton Keynes warehouse has been restocked. Octopus has increased its stake to 13.1%.
Ultrasound training simulators developer MedaPhor (MED) says it still had cash of £1.4m, net of the litigation settlement, which has been formalised with SonoSim Inc. In 2016, revenues grew by 50% to £3.3m, partly thanks to an initial contribution of £850,000 from the acquisition of Inventive Medical. The loss has increased from £1.5m to £2.5m, after settlement costs.
ImmuPharma (IMM) has recruited the 200 patients it requires for its phase III trial for the Lupuzor potential treatment for Lupus. By the end of January, more than 80% of the patients will have been treated for three months. Patients have to be monitored for 12 months so the full trial will not be completed until the first quarter of 2018. So far, there have been no indications that the drug is not safe.
Headway Investment Partners has increased its offer for Ludgate Environmental (LEF) from 16p a share to 16.3p a share, which compares with the latest NAV of 21.7p a share. The bid, though, provides cash up front rather than having to wait for the portfolio to be sold off.
Ascent Resources (AST) has started a well test at Pg-10 at the Petisovci project in Slovenia and an announcement about the results of the test should be published later this week. Henderson took advantage of a share price rise to sell one-fifth of their stake taking it to just below 10% but then almost doubled the number of shares it owns by converting £1m of convertible loan notes into 100 million shares. There are still £8.14m of convertibles in issue.
Ramblers Metals & Mining (RMM) expects to achieve the milling of 1,250 metric tonnes a day by the middle of 2017. Saleable copper of between 5,100 and 5,800 tonnes is forecast to be produced in 2017, along with 4,400 to 5,100 ounces of gold. In 2016, there was 4,174 tonnes of copper and 6,132 ounces of gold produced.
Keras Resources (KRS) has raised £600,000 at 0.35p a share in order to finance exploration at the Klondyke gold project in Australia. Some of the cash will be used to repay a £265,000 loan.
A concept study for the development of the CS natural pozzolan project in Nevada should be completed by the end of the first quarter of 2017. Sunrise Resources (SRES) should have information about the potential timeline for commercial production for the pozzolan, which is more environmentally friendly alternative to Portland cement.
MAIN MARKET
East Africa-focused Rainbow Rare Earths has raised $8m at 10p a share ahead of its standard listing. Demand for the shares was strong. This cash will be invested in the Gakara rare earths project in Burundi. Rainbow requires $2.23m to enable it to commence production in nine months. The main rare earths will be neodymium and praseodymium, which are used in generators, electric vehicles and wind turbines. Rainbow has secured a ten year offtake agreement with thyssenkrupp Raw Materials, which covers the sale of 5,000 tpa of concentrate. Petra Diamonds founder Adonis Pouroulis is chairman of Rainbow, which could move into profit in the year to June 2018.
Andrew Hore
Quoted Micro 25 April 2016
ISDX
Wine and beer maker Chapel Down (CDGP) reported a one-third increase in 2015 revenues but a smaller increase in profit. The investment in an additional 90 acres of vineyards should provide further impetus in the coming years. Wine sales were 27% higher last year. Revenues increased from £6.11m to £8.18m and underlying profit improved from £133,000 to £141,000. Brewing subsidiary Curious Drinks has raised £1.71m to invest in a new brewery and last year its sales rose by 50%. At 33.5p (32p/35p) a share, Chapel Down is valued at £33.8m.
Electronics and engineering group Mechan Controls (MECP) failed to find a bidder that was willing to meet its board’s valuation for the business. Bids for parts of the group were also too low but there is still potential to sell individual subsidiaries. This means that the formal sales process has ended. At 248p (243p/253p) a share, Mechan is valued at £5m.
Diversified Gas & Oil Corp (DOIL) has completed the purchase of assets in Ohio for $4.8m. These assets are producing 250 barrels of oil per day and 3,000 mcf of gas a day. Diversified operates more than 5,000 producing wells in Ohio, West Virginia and Pennsylvania producing 450 barrels of per day and 13,000 mcf gas a day. So far £6.9m has been raised from bond issues. There are further acquisition opportunities.
Queros Capital Partners (QCP) has issued a further £390,000 of 8% unsecured bonds. The company’s focus is investment in social housing portfolios and property asset-backed lending in the UK and Europe. Queros originally raised £500,000 last July and the latest issue takes the bonds in issue to £972,000.
AIM
Electrical testing and oil and gas equipment rental and sales company Northbridge Industrial Services (NBI) is raising £5.5m through a placing and open offer at 75p a share and management will contribute around one-fifth of this cash. Northbridge fell into loss last year as demand from the oil sector weakened. Costs have been reduced but Northbridge is not expected to return to profit until 2017. Debt covenants have been a concern and the additional cash will help net debt to fall from £14.3m, while capex should be lower than depreciation this year.
SalvaRx Group (SALV) has made its first investment since it reversed into 3Legs Resources. A $2m investment will give SavaRx a 9.2% interest in Intensity Therapeutics, which is developing a treatment for solid tumours. Intensity has a platform called DfuseRx that can identify formulations based on existing treatments that could be injected into solid tumours. The lead treatment is INT230-6, which could enter human trials by the end of this year. SalvaRx chief executive Dr Ian Walters has been working with Intensity for nearly two years so he knows about the technology. Jim Mellon and a fellow SalvaRx non-exec are subscribing for $1m of convertible loan notes in SalvaRx. The conversion price is 35.5p a share.
Healthcare services provider Totally (TLY) has been adding new clients to its services, including new prison contracts. The nine new contracts cover 21 locations and are worth £300,000 a year over the five years of the contracts. The services provided include physiotherapy. Totally is also integrating health education services and products provided by US business Healthwise into its self-care services. Totally has a three year agreement with Healthwise.
Investment company BP Marsh (BPM) has sold its 49% stake in small business sales adviser Broucour Group to its founder for up to £341,000. A £330,000 loan will also be repaid. BP Marsh has also invested S$2.4m for a 20% stake in Asia Reinsurance Brokers. An additional investment of S$500,000 could increase the stake to 25%. The Singapore-based reinsurance and insurance risk services provider is well-established and profitable.
CEII Roma is investing £10.45m in copper and gold miner Rambler Metals & Mining (RMM) at 4p a share – a small discount to the market price. Canada-based Rambler has also issued 200 million warrants with an exercise price of 5p a share. The initial cash should enable production at the Ming copper-gold mine to increase to 1,250 metric tonnes per day over the next few years. Rambler will assess the potential for further investment in the mine. Last month, Rambler said that it is exploring the potential for toll mining gold concentrate from the Cap Ray deposit at its Nugget Pond mill.
MAIN MARKET
Standard list cash shell Vertu Capital Ltd (VCBC) has identified a potential acquisition. The financial services-focused investment company intends to acquire corporate finance consultancy VCB Malaysia for £350,000. VCB is profitable and offers capital market, investor relations, fundraising and wealth management services. Vertu believes that VCB can be used as a base to grow a consultancy and wealth management business. Due diligence is still being undertaken. The deal will require a document for the readmission of the company to the standard list because it is a reverse takeover but it does not require shareholder approval because the company is on the standard list.
Standard list cash shell Falcon Acquisitions (FAL) has raised £2m at 20p a share to add to its cash pile. Falcon, which is seeking online television and broadcasting businesses to acquire, previously raised £1.73m, mainly at 10p a share when Falcon floated in January. At the time of flotation, Falcon said that it wanted to raise additional funds of up to £2m at a share price to be set between 10p and 30p.
Investment company Athelney Trust (ATY) has raised £390,000 after expenses at 233.2p a share, the NAV at the end of March, and the shares were admitted to the market on 21 April. The placing price was at a premium to the market price. Managing director Robin Boyle believes that there are a number of mis-priced shares that the cash can be used to buy.
ANDREW HORE
Quoted Micro 18 January 2016
ISDX
Blockchain technology companies investor Coinsilium Group Ltd (COIN) has made two investments since it joined ISDX. Coinsilium has invested $50,000 (paid in Bitcoin) for the equivalent of a 1% stake in RSK Labs Ltd, and co-investment partners have invested the same amount. RKS developed Rootstock, a platform that is a sidechain of the Bitcoin blockchain. This technology enables transactions that can be set up to complete autonomously when pre-set conditions are met. Rootstock should be launched in the middle of 2016. RSK raised a total of $350,000 and the company’s valuation is $5m. Coinsilium has also increased its stake in Fuzo Ltd, which has developed a SIM card technology focused on adults that do not have a bank account. A $29,000 investment has taken Coinsilium’s stake in Fuzo to 13.6% – the total investment is $300,000. The valuation after the latest investment is $3m, which values the stake at $408,000. The Coinsilium share price has fallen back from the 10p flotation price. At 8p (6.5p/9.5p) a share, Coinsilium is valued at £5.7m. There were 15 trades during last week, which makes Coinsilium one of the more regularly traded ISDX companies.
Cyber security products developer Crossword Cybersecurity (CCS) has joined up with MHA MacIntyre Hudson to co-market Crossword’s Rizikon cyber risk analysis tool to the accountant’s small and medium-sized clients. Rizikon was developed at City University and it is Crossword’s first product. At 175p (150p/200p) a share, Crossword is valued at £4.2m.
Business incubator Milamber Ventures (MLVP) has acquired a 10% stake in White Cobalt, which develops technology platforms to help businesses to be more efficient and cope with growth. Milamber issued 166,667 of its own shares at 18p each in payment for the stake. This makes Steve Stovold, who founded White Cobalt in 2011, the fifth largest shareholder in Milamber with 4.7%. Powwownow founders Paul Lees and Andrew Pearce have each bought 50,000 shares in Milamber at 18p each. This cash will be used in a joint venture between their new business Thortful and Milamber. At 13p (12p/14p) a share, Milamber is valued at £455,000.
David Grierson has joined the board of investment company Lombard Capital (LCAP). He has been working in the timber and contracting sectors for four decades. Mark Jackson and Graham Jones have both left the board. At 6p (5p/7p) a share, Lombard is valued at £136,000.
AIM
Human microbiome-based products developer OptiBiotix Health (OPTI) has signed an agreement with KSF Acquisition UK, which will finance the assessment of the benefits of OptiBiotix’s SlimBiome weight management products when it used alongside SlimFast products. SlimBiome affects appetite, metabolism and energy harvest which fits with the SlimFast meal replacement products. Kainos Capital acquired SlimFast from Unilever in July 2014 and KSF is its UK offshoot with rights to the SlimFast brand in UK, Ireland and Germany.
Curtis Banks (CBP) will become the second largest SIPP provider following the acquisition of Suffolk Life from Legal & General for £45m. The enlarged group will have 65,000 SIPPs with assets of £18bn under administration. Suffolk Life made a profit of £1.3m in 2014 and there should be synergy benefits from the combination. A placing at 320p a share has raised £27m. The deal enhances 2016 earnings from 14.9p to 15.8p.
Management Resources Solutions (MRS) plans to acquire civil construction equipment and services provider Bachmann Plant Hire Pty for up to A$13.4m and the acquisition will more than double group revenues. There is an initial payment of A$8.2m in cash and the taking on of finance debt, while the rest is dependent on performance in 2016, 2017 and 2018. Bachmann provides earthworks equipment and operators in Queensland, Australia. There is a fleet of more than 200 vehicles and revenues were A$21.7m and pre-tax profit A$2m in the year to June 2015. MRS already supplies technical and strategic services to the oil and gas, construction and resources sectors. Project management activity has offset a decline in consulting work. This deal is a reverse takeover and the shareholder meeting is on 28 January.
Financial software and consulting services provider First Derivatives (FDP) has acquired Kx consultancy QuntumKDB for up to £2.2m, with £500,000 of this depending on the achievement of targets in the first 12 months. This deal will be earnings enhancing in the first full year. Quantum made a profit of £300,000 in the year to September 2015. First Derivatives has also signed a memorandum of understanding with Utilismart, which is expected to use Kx software for smart grid applications.
Interactive gaming operator Netplay TV (NPT) has extended its agreement with ITV for three years until 2019. Jackpot 247 has been on ITV since 2010 and Netplay will combine this TV exposure with its developing mobile platforms. Talks about the purchase of Sportech’s pools business have ended and NetPlay is not involved in the bidding process.
The UK National Screening Committee (NSC) is recommending that the IONA non-invasive test developed by Premaitha Health (NIPT) should be offered by the NHS to high risk pregnant women as part of the foetal anomaly screening programme. This will reduce the need for invasive testing.
Cambria Automobiles (CAMB) is paying £10.8m for a Land Rover franchise in Welwyn Garden City – Cambria has Jaguar and Aston Martin franchises nearby. In 2015, the franchise generated a pre-tax profit of £2.5m on revenues of £54m and it will be immediately earnings enhancing. A Jaguar franchise in Exeter is being sold for £1.3m and the Aston Martin franchise on the site will be closed. These businesses generated £500,000 profit in 2015. This leaves Cambria with 44 franchises and 17 brands. Cambria says that its first half trading is well ahead of the same period last year.
Ramblers Metals & Minerals (RMM) has completed the all share acquisition of Thundermin Resources. This means that Rambler owns 100% of the Little Deer and Whales Back copper projects. These have previously been mined and still include copper mineralisation. The infrastructure at the Ming mine could be used if the mines are brought back into production.
MAIN MARKET
Standard list shell RockRose Energy (RRE), which is headed by former Igas boss Andrew Austin, floated on 13 January and the shares ended the first week at 51.5p. RockRose raised £4.4m at 50p a share, having previously raised £600,000, but the costs of the flotation were £833,000. The company is capitalised at £5m at the placing price – so the net cash covers 83% of the valuation. The focus is UK onshore and offshore oil and gas assets which are in production and have significant reserves. The cash will help to finance the costs of due diligence and acquiring suitable assets.
Cash shell Falcon Acquisitions Ltd (FAL) will join the standard list on 18 January. A placing raised £1.6m at 10p, which capitalises the company at £2.04m, and there is a secondary fundraising may raise up to £2m at a share price to be set between 10p and 30p. There was already £265,000 in the bank before the flotation so there is cash of £1.65m after costs of £220,000. The focus is acquiring businesses involved in online, mobile and video broadcasting. Any target is likely to be worth up to £30m. The board includes directors from previous standard list shell Challenger Acquisitions.
Africa-focused oil and gas company Aminex (AEX) has secured a gas sales agreement with Tanzania Petroleum Development Corporation for the Kilwani North gas field, where Aminex has a 55.575% interest. Solo Oil has until the end of January to take up an option to buy an additional 6.5% stake in the field from Aminex, which would take its stake to 12.675%. A pre-determined level of production will be purchased each year and an invoice will be issued each month. The initial gas price is $3.07/mcf and there will be an annual indexation of the gas price.
Andrew Hore