Home » Posts tagged 'SOS' (Page 2)
Tag Archives: SOS
Andrew Hore: Quoted Micro 15 October 2018
NEX EXCHANGE
Smart home products supplier Sandal (SAND) reported a decline in overall revenues from £3.75m to £3.62m for the year to May 2018, but this masks the 71% growth of the Energenie MiHome revenues to £1.01m. Sandal reduced its operating loss and there was nearly £51,000 in the bank, although net debt was £1.09m.. A small profit is forecast for 2018-19 with a small increase in net debt expected. Sandal may need additional cash to increase the marketing for the Energenie MiHome brand.
High Growth Capital (HASH) has raised £500,000 at 0.8p a share, which was a 77% premium to the market price. Malcolm Burne and Professor Michael Cain have left the board and been replaced by Jens Zimmerman, who becomes non-executive chairman. The investment strategy will be widened from medicinal cannabis, because of a lack of opportunities, to technology. The company intends to acquire a 9.8% stake in Belgium-based artificial intelligence software developer Sentiance. The software enables companies to understand user behaviour. The data comes from smart devices. The technology is used in areas, such as insurance, health and car driving.
Asia Wealth Group Holdings Ltd (AWLP) improved its interim revenues from $1.15m to $1.24m. The pre-tax profit fell from $162,000 to $66,000. There was $1.4m in the bank at the end of August 2018.
Equatorial Mining and Exploration (EM.P) has published its 2017 figures and interims to June 2018. The full year loss was £294,000 and the interim loss increased from £117,000 to £162,000. There was £53,000 in the bank at the end of June 2018. The company is beginning to ship coal from its mine in Nigeria.
Positive Healthcare (DOC) has appointed KSA Group Ltd to liquidate the company.
Shen Chaohuli has sold his 18.3% stake in TechFinancials Inc (TECH) to Ou Qiao.
AIM
Patisserie Holdings (CAKE) has received a cash injection to keep it going, after unknown overdraft facilities were discovered. The cash balance in the recent accounts does not appear to exist. A placing has raised £15.7m at 50p a share. Chairman Luke Johnson is also providing loan facilities of up to £20m.
EKF Diagnostics (EKF) has revealed details of the spinning off of Renalytix AI on AIM. Renalytix AI is raising cash at 121p a share as part of the flotation, which should happen on 31 October. EKF will distribute its near-21 million shares in the company to its own shareholders, although it will subscribe for new shares. EKF shareholders will also get the chance to invest up to £3.5m in new shares.
Diversified Gas and Oil (DGOC) is making another major acquisition. The oil and gas producer is paying $183m for Core Appalachia, which is funded by cash and shares issued at 115p each. The deal is immediately earnings enhancing.
Vertu Motors (VTU) has been hit by a lack of cars due to the newly installed testing procedures but it still has a strong balance sheet and it will make a significant full year profit. September registrations were the worst since 2011 and Vertu was not immune. That will hit the second half. There was an improved performance in the used car market to help offset the weaker new car sales in the first half. Pre-tax profit is expected to decline from £28.6m to £22.1m in the year to February 2019.
Marshall Motor Holdings (MMH) has reaffirmed that it is on course to make a full year pre-tax profit of £24.2m, down from £29.1m in 2017.
OnTheMarket (OTMP) has increased its spending on marketing and IT since floating on AIM and this has pushed it into loss. A full year loss of £14.7m is expected and there is not likely to be much of a reduction the following year. The online property platform has succeeded in doubling the estate agency offices using the service to more than 11,000 many of the additional offices are in a trial period and not paying to put their properties on the platform. The investment being made will only be justified if these offices start to pay fees. The IT investment will enable the company to offer more products and services and increase revenues that way as well.
Access Intelligence (ACC) is acquiring ResponseSource, which provides SaaS-based services to the PR and media sectors, for £5.5m. This company fits well with the group’s existing business. A ten-for-one share consolidation is planned.
Health monitoring equipment developer LiDCO Group (LID) is still going through the transition from a sales model to one based on regular income from hospitals. Interim recurring revenues increased by 11% but total revenues were 8% lower at £3.6m. Importantly, there should be enough cash in the bank to move the business towards profitability. That could happen in 2019-2020 but is more likely to be the following year.
Melissa Blau is stepping down as chief executive of Veltyco (VLTY) fewer than seven months after she was appointed. The shares price has fallen by three-fifths in the subsequent period.
Online women’s fashion retailer Sosander (SOS) has raised £3m at 32p a share, which is more than double the flotation price of 15.1p a share. First half revenues were £1.84m.
MAIN MARKET
Titon (TON) has firmed up its plan to move to AIM. The window components manufacturer expects to join AIM on 10 December.
Toople (TOOP) says trading in the first week of its new financial year is ahead of expectations. The statement remains, as ever, light on proper financials and indications of losses. Toople raised £2.2m at 0.3p a share, so it has enough cash for the time being.
Andrew Hore
Andrew Hore Quoted Micro 24 September 2018
NEX EXCHANGE
In the first half of 2018, Newbury Racecourse (NYR) increased media revenues by one-fifth and, along with growth in nursery and lodge revenues, this helped the racecourse operator to raise revenues by 5% to £7.33m even though two race days were lost to bad weather. Enough cash was generated to more than cover capital spending.
Block Commodities (BLCC) has signed a non-binding letter of intent with the Eelleet Network Corp, which intends to buy Block. There would be an all share recommended offer and the enlarged business would list on the Canadian Stock Exchange. Trading in Block shares has been suspended.
Ananda Developments (ANA) has obtained a £300,000 convertible loan facility with two directors, Charles Morgan and Melissa Sturgess. The annual interest rate is 10% and the conversion price is 0.75p a share. The manufacture of 15%-owned Liberty Herbal Technologies’ vaporisers and consumable packs containing four hapac sachets of 0.25g medicinal cannabis has commenced in China. AfriAg Global (AFRI) has applied for a medicinal cannabis licence in the UK. Fellow cannabis investment company Sativa Investments (SATI) has set up a German wholesaling subsidiary and it will invest €80,000 for a 60% stake.
In the six months to June 2018, St Mark Homes (SMAP) increased revenues from £71,000 to £139,000 and it made a small loss excluding negative goodwill release. The interim dividend was unchanged at 5.5p a share. The NAV is £5.9m, including £754,000 in cash, which is equivalent to 134p a share. St Mark is trying to gain planning permission for the commercial development in Sutton High Street. Two other properties in London are being redeveloped and sales have commenced. A development in Wembley should start in 2019.
TechFinancials Inc (TECH) reported a profit in the first half of 2018, but that was due to a change in the fair value of the option to acquire 90% of Cedex. Revenues fell 48% to $3.78m and the underlying loss of the fintech software provider increased from $282,000 to $971,000. The blockchain operations made an initial contribution of $1.23m to revenues. The B2C operations have ceased in Europe and the company wants to sell its subsidiary with a FSA licence. Higher regulations have hampered the B2B technology customers.
NQ Minerals (NQMI) reported an increased interim loss of $9.43m due to higher finance costs. Admin costs were flat. The development of the Hellyer gold project in Tasmania is progressing well and the first sales of concentrate should happen before the end of this year. Work continues towards a move to a standard listing.
Less than one month after asking for trading in the company’s 7% bonds 2021 to be suspended Positive Healthcare (DOC) has appointed Eric Walls and Wayne Harrison of KSA to advise on a liquidation process. Irregularities were identified at the principal operating subsidiary and Positive is unable to pay the next instalment of interest on the bonds.
Eight Capital Partners (MORE) had cash of £773,000 at the end of June 2018. That was before the former Cogenpower acquired €111,100 worth of 8% corporate bonds 2020 in Italian financial services company Finance Partners Group. Other financial services and technology investments are being considered.
EPE Special Opportunities (ESO) has been readmitted to NEX and AIM on 21 September, after it completed its migration from the Isle of Man to Bermuda.
AIM
IT recruitment and consultancy Parity (PTY) remains on track for an improvement in pre-tax profit from £1.7m to £1.9m but cash generation is not as good as expected. Net debt is still expected to reduce from £1.6m to £900,000. The previously announced Primark managed services contract has started well, although another contract has been delayed. The consultancy business continues to contribute a growing proportion of profit.
Tlou Energy Ltd (TLOU) has agreed locations for pilot production at the Lesedi coal bed methane project in Botswana and the first well should be spudded in October.
N+1 Singer has upgraded its forecast for EKF Diagnostics (EKF) following the interim figures. There was a 5% decline in revenues to £20.4m, while underlying profit improved from £2.3m to £2.7m. Around £250,000 has been added to the profit, taking pre-tax profit to £7.7m. The launch of haemoglobin analyser DiaSpect following FDA approval will boost next year’s figures. The spin out of RenalytixAI continues and it will require a general meeting.
Audio products supplier Focusrite (TUNE) says full year revenues were in line with expectations of £75.4m, while cash of £22.8m is better than forecast. A pre-tax profit of £10.8m is forecast. There are concerns about US tariffs.
Tanfield (TAN) has warned that it may not get anything for its stake in Snorkel if the call option is exercised. Management has already said that it will write down the value of the investment to £19.1m ($25.3m), which already knocks 12p a share off NAV, but there is a disagreement about the interpretation of the original agreement.
Disappointing results from the Atopic Dermatitis study has led Realm Therapeutics (RLM) to appoint MTS Health Partners to advise on strategy alternatives. Realm is considered to be in an offer period. There was $21.3m in the bank at the end of August.
Short-term weakness in the oil palm price has held back the progress of plantations operator MP Evans (MPE) in the first half, but crude palm oil production is increasing in line with expectations (91,900 tons in the first half). That means that full year revenues are likely to be flat and pre-tax profit will be lower. Longer-term growth will come from increased production from more recently planted areas.
Online women’s fashion retailer Sosandar (SOS) is coming up to its first year on AIM and the growth momentum continues.
Huadong Medicine Aesthetics has launched its recommended 32p a share cash bid for Sinclair Pharma (SPH) and that values the company at £166.6m.
There has been a lot of activity at Frontier IP (FIPP) in the past week. The AB Sugar head of innovation Matthew White is joining the company as head of commercialisation. Recycled building materials developer Alusid has raised £1.34m, including the conversion of a £348,000 loan from Frontier IP, which has a 35.6% stake. The Alusid investment had been valued at £700,000 and the latest fundraising values it at £1.73m. The cash will be used by Alusid to invest in its manufacturing facility, which should start production in 2020. The total cost will be £10m. A new company has been set up to develop new antibiotics. Frontier IP has a 10% stake in Amprologix, which has been spun out of the University of Plymouth. The first product is likely to be a cream that contains epidermicin, which can kill antibiotic-resistant bacteria, including MRSA.
There was a switch in the mix of revenues at job screening services provider ClearStar Inc (CLSU) in the first half as revenues increased by 11% to $9.9m. The growth has come from Medical Information Systems, which has lower margins and this means that the overall loss is reducing more slowly than expected. The cash outflow is small. Net cash is $1.2m.
Diurnal Group (DNL) is going along as expected with the launch of its Alkindi paediatric adrenal insufficiency treatment in Germany but the market has been unnerved by a negative comment from a German government research organisation. It pointed out that the performance of Alkindi was not compared with another treatment which has not been given regulatory approval. This does not appear likely to affect the relationship with the German regulatory authorities. There will be news from the European phase III trial for Chronocort before the end of the year.
Stockdale has initiated research on professional services group Christie Group (CTG) and expects a full year profit of £3.5m. It has already achieved an interim profit of £1.75m.
VR Education (VRE) still had £4.9m in the bank at the end of June 2018. Since then there have been improvements to the ENGAGE platform ahead of the full commercial launch before the end of the year. The full version of Titanic VR was launched in August and it is set to be launched on Playstation.
Energy supplier Yu Group (YU.) continues to grow rapidly and it is moving into the water sector. Interim revenues jumped from £20.8m to £35.8m, while underlying pre-tax profit moved ahead from £1.15m to £1.8m. Growth is coming from the larger corporate sector which has held back margins because they are via brokers. The interim dividend is one-fifth higher at 1.2p a share. There was £18.2m in the bank at the end of June 2018.
N4 Pharma (N4P) has undertaken a strategic review following the failure of the reformulation of sildenafil to achieve its key targets in its clinical trial. It would cost a lot and increase risk if the company undertook further reformulation of this generic. The generics division has been closed and the focus will be the Nuvec delivery system. Initial results from research should be available before the end of the year. There was £1.6m in the bank at the end of June 2018.
MAIN MARKET
Books publisher Quarto Group (QRT) increased interim revenues from $50.2m to $56.2m and the underlying loss fell from $8.7m to $6.6m. Net debt was $73.2m at the end of June 2018. Management is talking to banks to extend the bank facility until August 2020. Costs are being reduced.
Spinnaker Opportunities (SOP) intends to broaden its investment remit to include cannabis processing, as well as the energy and industrial sectors. Finance professional Alan Hume has joined the board of the standard list shell. He was previously an adviser to the company and until last year finance director of Zenith Energy (ZEN). Between 2010 and 2012 he was finance director of Xtract Energy (XTR).
Bluebird Merchant Ventures Ltd (BMV) has completed its feasibility report into the reopening of the Gubong gold mine and the joint venture with Southern Gold has started. Production of 10,000 ounces of gold is initially targeted.
Andrew Hore
Andrew Hore – Quoted Micro 16 July 2018
NEX EXCHANGE
Hotel operator Hydro Hotel, Eastbourne (HYDP) reported flat interim revenues of £1.51m in the six months to April 2018, during a period where building repairs were undertaken. Higher overheads and maintenance costs meant that the loss increased from £153,000 to £200,000. There is £635,000 in the bank.
AfriAg Global (AFRI) has raised £300,000 at 0.1p a share in order to finance its new investing strategy of investing in medicinal cannabis businesses.
Panther Metals (PALM) has signed an option agreement to acquire gold exploration properties in Ontario. The total potential consideration is C$133,000 (£77,000) in cash and the issue of 19.15 million shares at 0.3p each, locked-in for six weeks. A non-refundable payment of C$30,000, one-half cash and one-half shares, has been paid. Due diligence needs to be completed within eight weeks.
NQ Minerals (NQMI) has entered into two marketing and off-take agreements, combined with a $10m secured prepayment facility with Traxys Europe. The off-take agreements relate to all lead and zinc concentrates from the Hellyer project in Tasmania in the first five years of production.
Pelican House Mining (PHM) had nearly £49,000 in the bank at the end of June 2018. The former Hellenic Capital acquired a 15% stake in Might Oak Explorations last month.
Melissa Sturgess and Michael Langoulant have been appointed as directors of Imperial Minerals (IMPP) and James Hamilton and Russell Hardwick have resigned.
Wheelsure Holdings (WHLP) has received approval for the Tracksure locking device from the Italian State Railway.
Clean Invest Africa (CIA) plans to buy out the other shareholders in CoalTech LLC. Due diligence has commenced prior to making an offer for the 97.5% of CoalTech not owned by the clean technology investment company. The initial investment was $500,000.
AIM
Frontier IP (FIPP) investee company Pulsiv Solar has won a UK government grant worth £130,00, which will be put towards a £289,000 project to compete the development of its solar micro-inverter by next April. Frontier IP owns 18.9% of the University of Plymouth spin-out.
Kestrel Partners continues to build up its stake in broadcast software provider Pebble Beach Systems (PEB) and it has taken it from 16.6% to 17.4%. Continuing operations moved back into operating profit in 2017, even though revenues fell from £10.9m to £10.3, but the £500,000 was not enough to cover interest charges and rationalisation costs. Net debt was still £10.3m after getting some proceeds from the sale of the Vislink hardware business. The revolving credit facility is £15m.
Medical imaging technology developer Polarean Imaging (POLX) has raised £800,000 at 16p a share, following last month’s investor symposium. This provides additional cash to support phase III clinical trials in the US and invest in further development.
Veltyco (VLTY) has decided not to go ahead with the potential acquisition of sportsbook operator Ruleo Alpenland.
Telit Communications (TCM) has agreed to sell its automotive division to TUS International for $105m and the deal should be completed by the end of 2018. In 2017, this business made a $10.1m contribution to EBITDA before group overheads. This deal will more than wipe out the current net debt of $25m. The focus will be the Internet of Things operations.
Online women’s fashion retailer Sosandar (SOS) continues to build up its sales. The reported interim revenues were £1.35m. Like-for-like interim revenues grew by 268%. The company remains loss-making but the gross margin improved from 37.8% to 49.4%. There was £4.6m in the bank at the end of March 2018 and this will help to finance further increase in the product range as well as continued losses. There is a database of more than 54,000 customers and 11,407 of those were repeat customers in the period.
Duke Royalty Ltd (DUKE) is raising £44m at 44p a share to fund the pipeline of royalty financing opportunities. There are already four new potential royalty partners requiring £27.5m. These include healthcare, foods and media businesses. Within 12 months, Duke expects to increase its dividend yield. Last December Duke raised £20m at 40p a share.
Itaconix (ITX) is raising £3.4m at 2p a share, which was a 70% discount to the suspension price. Trading in the shares will start again on Monday 16 July. The speciality polymers designer will have enough cash for 12 months, assuming shareholders vote in favour of the share issue. Revenues have been building up slowly and last year they nearly doubled to £553,000. The loss was £11.9m.
One year after it joined AIM, superyacht painting and maintenance services provider GYG (GYG) says that first half trading was weaker than expected. There were delays in refits and fewer new build projects were won. First half revenues of around €25.1m are lower than the two previous first half outcomes. It appears that the interim loss will be more than €1m. There are €12.1m of orders expected to be completed in the second half with a further €25m of “high probability prospects”. The 2017 revenues were €62.6m.
Marlowe (MRL) is raising £20m at 475p a share in order to finance further acquisitions in the critical asset management services sector.
Tristel (TSTL) says that its full year pre-tax profit should be at least in line with the £4.4m forecast, up 8%. Higher investment in gaining US approvals for disinfection products has held back profit growth, but it is expected to accelerate in 2018-19 when a pre-tax profit of £5.2m is forecast.
ReNeuron (RENE) has signed a three-month exclusivity agreement with a major pharma company to potentially out-licence the global rights, excluding China, of its hRPC retinal stem cell technology platform. A non-refundable payment of $2.5m will be received with a further $2.5m due if the deal goes ahead. There was £34.7m in the bank at the end of March 2018 and this should last well into 2020 even though there will be significant spending on trials, including the phase III trial of the CTX cell treatment for stroke disability.
Xpediator (XPD) has acquired Import Services Ltd, which operates a logistics and warehousing business at the Port of Southampton, for up to £12m. The business, which made a 2017 profit of £1.7m, fits well with Xpediator’s existing business in the port and has a good management team that can help the enlarged operations to grow. It should be earnings enhancing in the first full year. A placing raised £7m at 70p a share.
Fifteen-month figures from healthcare services provider Totally (TLY) include five months from the Vocare acquisition but that was still enough to generate revenues of £42.5m. A full 12 months of Vocare should increase revenues to £85m but Totally would still be loss-making. There is further restructuring and integration required. Cost savings should help Totally move into profit in 2019-20. Net cash was £10.2m at the end of March 2018.
Collagen Solutions (COS) improved its revenues in the second half, compared with the first half, but full year revenues were still 6% lower at £3.83m. There is still £5.02m in the bank. There was growth in EMEA. The eight year clinical study for cartilage repair product ChondroMimetic was successful.
Full year figures from managed communications services provider AdEPT Telecom (ADT) were better than expected. Managed services were more than two-thirds of revenues, which were 35% ahead at £46.4m. Underlying pre-tax profit was one-third higher at £7.7m. Net debt was £17.6m at the end of March 2018.
Strategic Minerals (SML) generated sales of $696,000 from the Cobre magnetite operations in the three months to June 2018, but the suspension of a major contract will hit the current quarter. There was $2.09m in the bank at the end of June 2018 and a payment of $375,000 has subsequently been received.
ECR Minerals (ECR) has raised £650,000 at 0.7p a share and that provides enough cash until the third quarter of 2019. The development programme at the Blue Moon target in Victoria, Australia will be accelerated.
An international mining company has agreed to subscribe $250,000 for shares in Orosur Mining Inc (OMI) and that will help to finance further exploration at the Anza project in Colombia. The subscription is at 5.2p a share, double the market price at the time of the agreement.
Fishing tackle retailer Fishing Republic (FISH) expects interim revenues to decline from £4.1m to £3.4m following the closure of five underperforming stores. Like-for-like store sales were 22% lower and online sales also fell. Inventory levels have fallen.
Clear Leisure (CLP) has started operations at its crypto currencies mining data centre in Serbia.
Battery technology and advanced materials developer Ilika (ILK) has raised £4m at 20p a share and an open offer could raise up to £1m more. The cash will finance the costs of developing battery technology for the automotive market. There was £2.8m in the bank at the end of April 2018.
N4 Pharma (N4P) reported disappointing results from the pharmacokinetic data for the clinical trial for reformulated sildenafil, which is better known as Viagra. The plan is to improve the speed at which the drug takes effect but the formulation has not meet the targets set.
Ariana Resources (AAU) says that the Kiziltepe mine produced 7,171 ounces of gold in the second quarter of 2019 and it is still on course to produce 20,000 ounces of gold for the whole year.
Trading remains tough at replacement windows supplier Safestyle UK (SFE) although order intake has firmed in recent weeks. This follows the loss of staff to a competitor that is being sued by Safestyle. It will take until next year to rebuild the team. Thee will be a loss this year even before £6m of restructuring costs. This will use up the cash in the bank.
Next Fifteen Communications (NFC) is paying an initial £2.2m for Technical Associates Group, which is a technical content and digital marketing business. This deal increases the group’s exposure to the industrial engineering sector.
MAIN MARKET
More director changes at Quarto Group Inc (QRT) with Andy Cumming appointed as senior independent non-executive chairman. Major shareholder Laurence Orbach has stepped down as executive chairman and will become a non-executive director. Chief operating officer Ken Fund has joined the board.
Nicholas Lyth has resigned from the board of Sealand Capital Galaxy Ltd (SCGL) having been a director for 17 months.
China-focused healthcare investor Cathay International Holdings (CTI) says that the first half sales and profit will be lower than expected but it hopes to make up the shortfall in the second half. Healthcare subsidiary Lansen has appointed a new chief executive and there have been operational changes, while regulation changes also continue to hit sales in the first quarter. The company’s hotel operations are trading ahead of expectations. The interim will be published in late August.
Andrew Hore
Andrew Hore – Quoted Micro 21 May 2018
NEX EXCHANGE
Newbury Racecourse (NYR) grew 2017 revenues from the nursery, hotel and media operations. There was a 11% increase in raceday attendances, which totalled 196,000 last year, leading to a 1% like-for-like rise in revenues. Overall revenues were 5% higher at £17.8m, while underlying pre-tax profit edged up from £178,000 to £188,000. There was a small cash outflow from operations. Capital investment meant that cash was reduced from £12.9m to £5.2m with more payments to come from the David Wilson Homes deal. A further £5.17m will be spent on upgrading the Pall Mall stand. There are concerns that the cutting of maximum stakes for gaming machines following the recent government announcement could hit bookmaker sponsorship and media rights revenues.
Block Commodities Ltd (BLCC) has a secured a strategic investment from Swarm Fund, which is a decentralised marketplace platform using blockchain. Investors will be able to participate in the FarmCoin asset-backed investment coin via the Swarm platform. FarmCoin is a joint venture between FinComEco and Block Commodities focused on the agriculture sector. There will be up to $45m of FarmCoin tokens issued.
National Milk Records (NMR) is holding a general meeting on 4 June in order to propose a reduction in capital that should put it in a position to have distributable reserves if it wants to pay a dividend.
Pre-IPO investor Primorus Investments (PRIM) had cash of £561,000 at the end of 2017. The NAV was £4.95m. This was after a £3.26m inflow from share issues.
AIM
Watkin Jones (WJG) has found a new chief executive but he will not be able to start until the beginning of 2018. Richard Simpson is joining from student accommodation developer Unite Group. The build to rent operations of Watkin Jones has secured a development arrangement for a site in Reading, which will have 315 apartments.
GAN (GAN) and Webis (WEB) are two companies that could benefit from the legalisation of online sports betting in the US. The Supreme Court of the United States has decided to overturn the Federal prohibition of sports betting. US sports betting could be worth $6bn by 2023. That covers online and onsite gambling. GAN can launch a sports betting service in New Jersey and Pennsylvania in the second half of this year – in time for the NFL season. GAN already has a deal with Betfair in New Jersey and adding sports betting will increase revenues. Webis has a US subsidiary called WatchandWager, which is based in California, a strong potential market for sports betting.
Genedrive (GDR) has agreed to sell its research and pharmacogenomics divisions to a director for up to £1.9m so that it can concentrate on its core Genedrive diagnostics platform. The initial payment is £1.15m with the rest deferred and subject to claims for R and D tax credits.
Lakehouse (LAKE) is acquiring heating and renewables services provider Just Energy Solutions, which fits with the company’s gas compliance businesses in the public sector and expands coverage in the industrial and commercial sectors. There is no upfront cost and payments will be dependent on profitability over two years. Lakehouse has also won a £55m, three year, Warm Homes contract with the Wales government.
Oil and gas demand is recovering at advanced coatings provider Hardide (HDD) but it is still well below previous levels. Other customers are enhancing growth and aerospace business is on the horizon. Interim revenues were 43% higher at £2.16m but the company is still loss-making. That will continue for a couple of years.
Angling Direct (ANG) increased revenues by 44% to £30.2m in the year to January 2018 and this led to an upgrade in forecast revenues for the current year. The fishing tackle retailer grew online sales by 54% but these tend to be lower margin. Pre-tax profit was £900,000 and it is expected to rise to £1.1m this year.
Online women’s fashion retailer Sosander (SOS) says that its full year revenues will be at least £1.34m. Like-for-like sales in the fourth quarter nearly quadrupled and gross margins are improving.
Portmeirion (PMP) has increased revenues by one-fifth in the first four months to 2018, although the second half of the year is always the more significant. Full year profit is still forecast to rise from £8.8m to £9.4m.
Churchill China (CHH) says that trading is ahead of the same period last year. The ceramic products manufacturer continues to have success in Europe and other export markets.
A new patent application has been filed for SkinBiotix by SkinBiotherapeutics (SBTX) and this covers the increasing of filaggrin levels in skin. Filaggrin is required for the formation of the outer layer of skin. Eczema sufferers have a low level of filaggrin.
The People’s Operator (TPOP) is increasing its UK subscribers but US numbers have declined so the performance was down in the first quarter of 2018. Churn is declining. Margins are better than expected. Even so, progress is too slow and an alternative strategy is required by the virtual mobile network business and it is considering divesting the US subscribers. That should cut cash burn by one-third.
A bathing water test by Molendotech, which is one of the investee companies of Frontier IP Group (FIPP), is being launched by Halma. This follows the agreement earlier this year.
Altona Energy (ANR) will begin a drilling programme on the Westfield tenement of the Arckaringa coal project during August. There could be 100mt of coal in the tenement. It will take three weeks to drill 15 holes to a depth of 120 metres.
Active Energy Group (AEG) intends to acquire a controlling interest in PowerWood Canada. Which owns forestry assets in Canada. This will secure feedstock for the roll-out of CoalSwitch, the biomass replacement for coal. There are plans to construct a 25 tonne per hour CoalSwitch plant in Alberta.
Servoca (SVCA) wants shareholders to agree to the cancellation of the AIM quotation. Management says that this will save £150,000 a year.
Volex (VLX) is buying Silcotec Europe for €18.1m and raising £36m at 75p a share. Silcotec supplies harnesses and electronic sub-assemblies to the medical, telecoms and computer industries and generated an operating profit of €3.1m.
Audioboom (BOOM) is not going ahead with the reverse takeover of Triton Digital Canada Inc because it could not raise the cash from a placing. A £700,000 break fee in cash (£90,000) and shares is payable. The audio business still requires more cash and that is why trading in the shares is still suspended.
MAIN MARKET
Sportech (SPO) has a strong presence in the US so it is in a good position to benefit from the legalisation of sports betting. It already has 90 licenced operator clients and its own network of off-track betting facilities in Connecticut.
The reasons behind founder Laurence Orbach increasing his stake in books publisher Quarto Group Inc (QRT) to 20.1% have become clear. Orbach was removed from the board in November 2012 but he has joined with 27% shareholder Lion Rock to unseat four non-executive directors at the AGM. Orbach and former finance director Mick Mousley have returned to the board, along with two nominees from Lion Rock. Orbach becomes executive chairman.
Shefa Yamim (SEFA) has completed bulk sampling in zone 1 and this should enable a resource estimate to be calculated.
Standard list shell Papillon Holdings (PPHP) has signed heads of terms for a 50% stake in CarCloud, a car sales-based fintech company. The deal to acquire energy storage systems developer Phestor is off. That follows the abortive takeover of Myclubbetting.
S&U (SUS) says non-prime car finance applications are 10% higher this year, although approval rates have fallen. Net receivables have increased by £48m to £258m.
North Midland Construction (NMD) has made a strong start to the year. There is a secured workload of £310m for this year and this should enable an improved financial performance this year.
World Trade Systems (WTS) wants to diversify its business outside of China. A new Taiwan-based health and fitness subsidiary is being incorporated. Kun Xin International will provide a loan facility of up to £3m to finance the new business. European opportunities are being sought.
Blood diseases treatments developer Hemogenyx Pharma (HEMO) has signed a development agreement with a global pharma company, which will provide Hemogenyx with free technical support and some intellectual property. The pharma company will be granted a research licence for anything jointly developed.
Andrew Hore
Andrew Hore – Quoted Micro 2 April 2018
NEX EXCHANGE
Sativa Investments (SAPI) joined NEX on 29 March after raising £1.1m at 1p a share. The share price has already reached 3.125p. Sativa has £1.5m in cash that it can invest in businesses involved in medicinal cannabis. The initial focus is Canada.
Capital for Colleagues (CFCP) reported a slight reduction in NAV to 41.5p a share at the end of February 2018. The portfolio includes 17 unquoted employee owned businesses with a value of £5.24m.
NQ Minerals (NQMI) has entered into a three-year, $10m loan facility with a US private equity firm and this will be used to develop the Hellyer mine. The facility has a 12% annual interest charge and it is secured on the company’s assets. NQ has entered into a silver purchase deed with the finance provider and has to sell them 30% of the first 8 million ounces recovered from the Hellyer mine and 10% of the payable silver for the lifetime of mine. The price will be the lower of $6/ounce or 80% of market price.
Gunsynd (GUN) says that investee company Human Brands is acquiring a 10% stake in wine and spirits distributor Milestone Beverages HK Ltd, which can help to increase the distribution coverage of the investee company’s drinks brands. Gunsynd owns 6.18% of Brazil Tungsten Holdings, which has been forced to suspend operations after a fatal accident. The investment is currently valued at £500,000.
Welney (WENP) made a broadly similar interim loss of £37,000 and it has net liabilities of £234,000.
Block Commodities (BLOC) has reduced its interim loss from $1.19m to $782,000.
Angelfish Investments (ANGP) has reached agreement with 4Navitas, which will make a payment to cover the majority of costs incurred when Angelfish was trying to negotiate a joint venture agreement.
Etaireia Investments (ETIP) has raised £50,000 at 0.06p a share.
EPE Special Opportunities (ESO) has sold 50% of its stake in Pharmacy 2U, for double its cost, at the same time as the digital pharmacy services provider raised £40m of new cash.
Walls and Futures REIT (WAFR) has extended the closing date of the one-for-four open offer to raise up to £1.05m at 94p a share from 26 March to 30 April.
AIM
MySQUAR Ltd (MYSQ) slipped out its interim figures at 5.32pm after the market had closed for Easter. They show near-doubled cash outflow from operating activities of $2.22m. There was $68,000 in the bank at the end of 2017. Management is hopeful that the $218,000 of trade receivables at the end of December 2017 can be collected by June. Since then, MySQUAR has issued £2.11m of convertible bonds at 90% of their face value to Atlas Capital Markets Ltd. There are also more than 20 million warrants exercisable at 3.15p a share. There is talk of an acquisition of a mobile payment services business.
Conviviality (CVR) is calling in administrators after a rescue fundraising failed to win the backing of investors.
Publisher Axel Springer is investing £125m in Purplebricks (PURP) and this will give it 11.9% of the estate agency. The shares are being acquired at 360p each and £25m worth of existing shares are being acquired from management. Full year revenues will double but a weak UK market, exacerbated by the weather and potentially by negative publicity. There was £51.7m in the bank at the end of February 2018. The additional cash will enable a faster roll-out in the US and entry into other markets.
Royal Bank of Scotland has bid 120p a share for FreeAgent (FREE) and that values the accounting software provider at £53m. The founders will take shares and have a 23.5% stake in the bid vehicle. FreeAgent floated 18 months ago at 84p a share. At the beginning of 2017, FreeAgent signed a deal with RBS, which offers the company’s SaaS-based software to small business customers. More than 10,000 customers have taken up the software.
Polarean Imaging (POLX) joined AIM on 29 March and raised £3m at 15p a share. Polarean has developed xenon gas-based technology that enables MRI scans to produce better images. Amphion Innovations (AMP) retains a 23.2% stake.
Polemos (PLMO) has withdrawn its general meeting resolutions. The placing and 100-for-one share consolidation will not go ahead for the time being. There could be an open offer and placing at the previously proposed price of 0.01p a share.
Thor Mining (THR) is acquiring 40% of an exploration licence, which has 13 outcropping tungsten deposits and one copper deposit and 100% of a prospective copper exploration licence. Thor is issuing A$550,000 of shares to Rox Resources in payment for these purchases. The 60%-owner of the first licence has the right to match the price offered.
Tracsis (TRCS) increased its interim profit by one-third to £2.4m as revenues grew by 18% to £18.1m. The software division increased its profit and there was a recovery in the traffic and data services division. There is more improvement to come from the latter division. The interim dividend is 17% higher at 0.7p a share. There is £18.5m in the bank. There will be a second half contribution from the rail sector delay repay businesses acquired in February. Progress is being made in selling remote condition monitoring technology in North America.
Internet gaming software supplier GAN (GAN) reported a reduced loss of £4.2m for 2017. There was £2.7m in the bank at the end of 2017 and since then has raised £2m via an unsecured 9% convertible loan note. There could be further fundraisings in order to make the most of the prospects for real money internet gaming in the US.
Inland Homes (INL) increased its adjusted EPRA NAV by 6% to 97.63p a share. Interim pre-tax profit improved from £4.95m to £5.37m. The interim dividend was raised 30% to 0.65p a share. The landbank has been expanded to 7,372 plots.
Altona Energy (ANR) slightly increased its first half loss to £260,000 and there was £690,000 in the bank at the end of 2017. The current focus is conventional coal mining at the Arckaringa coal project in Australia. Altona is assessing less wet coal seams.
RM2 International (RM2) is raising £25.3m at 1p a share, just over 50% after a general meeting and the rest dependent on the reduction of operating costs and commercial launch of new technology, and converting preferred shares into 3.16 billion shares. There are also plans for an open offer to raise around £4.5m. The new cash will be used to retrofit existing pallets with ELIoT track and trace devices and produce new RM2 ELIoT pallets. Former chief executive John Walsh has stepped down from the board, as has Frederic de Mevius. Woodford appears likely to end up owning around two-thirds of RM2. The second tranche is dependent on Woodford agreeing that key performance indicators have been met. Three members of RM2’s management will acquire shares in the placing via a reduction in their salaries over an 18 month period.
STM Group (STM) reported better than expected 2017 and this led to an upgrade for 2018. Last year’s pre-tax profit improved from £2.6m to £4m, helped by an increased provision release from the acquired life book. The underlying pre-tax profit is expected to rise from £3.2m to £4.2m in 2018.
Caledonian Trust (CNN) reported a NAV of 185.7p a share at the end of 2017. This was helped an increase in the valuation of St Margaret’s House, which is in the process of being sold.
The SimplyBiz Group provides regulatory and support services to financial advisers and is set to join AIM on 4 April.
Sosandar (SOS) has gained momentum since floating last year. The online women’s fashion retailer continues to lose money but the customer database has increased nearly ten-fold to 36,328.
NetScientific (NSCI) is running out of money and it needs more by the end of June. A placing and subscription will raise up to £6m at 52.5p a share. The cash will be used to provide additional financial backing for investee companies.
Manx Financial Services (MFX) has acquired Blue Star Business Solutions, which is a broker for IT equipment funding, for an initial £1.5m in cash. This could increase to up to £4m depending on performance.
Connemara Mining (CON) is focusing on three main areas: the Inishowen gold project in Donegal, the Mine River gold project in Wicklow and Wexford and multiple zinc exploration projects. The next exploration is at the 100%-owned Mine River gold project where high grade intersections will be targeted.
Wynnstay Properties (WSP) has increased the value of its investment properties by £1.63m to £30.1m in the year to March 2018. The NAV has increased by 100p a share to more than 770p a share.
Real Good Food (RGD) has agreed a loan note facility of up to £4m with three major shareholders. Longer-term, a share issue will be required.
Vernalis (VER) lost £37.6m in 2017, mainly down to exceptional write-downs and unrealised foreign exchange movements. There was £46m in the bank. US commercial activity should finish by the end of September and that will slow the ongoing cash outflow.
Kestrel has increased its stake in Pebble Beach Systems Group (PEB) from 15.2% to 16.6%. The share price has been on a downward trajectory and borrowings are significant but Kestrel must believe that the software company will survive.
Life science software provider Instem (INS) coupled its 2017 figures with a contract announcement for its SEND software. Revenues were 18% ahead at £21.7m, and that included organic growth of 5%, while pre-tax profit recovered from £500,000 to £1.9m. A further improvement to £2.7m is expected this year.
Feedback (FDBK) has raised £440,000 at 1.25p a share and it will invest in sales and marketing for the TexRAD and Cadran technology, as well as developing a clinical evidence base for TexRAD.
Oracle Power (ORCP) has raised £550,000 at 1.4p a share to provide cash for the company as it moves to financial close for the development of the Thar Block VI lignite coal mine and power plant in the Sindh province in Pakistan.
GoTech Group (GOT) plans to sell its Sportsdata business to Starnevesse for £1. The company was a shell prior to the acquisition of the business in May 2016 and it effectively became a shell again when it stopped supporting the business at the end of 2017. There is £566,000 in the bank and there will be a £100,000 cash payment as part of the settlement of indebtedness to Starnevesse.
Microsaic Systems (MSYS) has signed an agreement with Unimicro Technologies Inc, which will integrate Microsaic’s 4500 MiD mass spectrometry detector into its Capillary Electrophoresis instruments.
Collagen Solutions (COS) is restructuring its New Zealand operations. The plan is to focus on tissue collection and processing and then consolidate collagen production in Glasgow. Annual cost savings should be £200,000 and one-off costs will be £150,000.
Chris Akers has increased its stake in YOLO Leisure (YOLO) from 6.8% to 7.93%.
MAIN MARKET
S&U Group (SUS) reported a one-fifth increase in pre-tax profit to £30.2m. The car finance provider achieved this despite a start-up loss from the bridging finance business Aspen. The total dividend for the year was increased from 91p a share to 105p a share. A rise in pre-tax profit to £35.8m is forecast for this year.
Book publisher Quarto Group Inc (QRT) slumped into loss in 2017, although the underlying pre-tax profit fell from $13.9m to $3.9m. Net debt was $64m. The year end is being changed to March.
Shefa Yamim (SEFA) had NIS6.49m in the bank at the end of 2017 following its flotation. Bulk sampling results for the Kishon Mid-Reach gemstones project have been positive and the processing plant has been upgraded.
Path Investments (PATH) has postponed its exit from the standard list until further notice. The plan is to move to AIM when the proposed oil and gas asset acquisition is made but the timing remains uncertain.
North Midland Construction (NMD) reported a fall in profit in 2017 even though revenues increased from £250.5m to £291.8m. Pre-tax profit more than halved from £2.06m to £1m. That is because the loss on legacy contracts increased from £3.85m to £7.29m. The final dividend is unchanged at 3p a share even though the total dividend is one-third higher at 6p a share.
NCC (NCC) has sold its web performance business for £7.5m. The sale process for the software testing business is continuing.
Andrew Hore
Ian Pollard – SFO Having Another Bash At Barclays
Barclays BARC has now been charged by the Serious Fraud Office with an additional charge to that which was brought against it in June 2017 but this time relating to the loan itself rather than simply an allegation of providing unlawful financial assistance in 2008. It will be interesting to see who comes out of it worst, Barclays or the SFO whose reputation for competent and skilful prosecuting is hardly of the highest.
Lok’ n Store Group LOK enjoyed strong trading during the first half year to the 31st January. January produced the highest ever levelof new monthly storage sales. First half like for like revenue rose by 6.9%, self storage occupancy as at 31st January was up by 6% and price per sq. foot let was up by 0.4% compared to year ago. Trading at the new stores which have been opened is claimed to have been excellent.
Sosander SOS delivered a strong performance in December and January with net revenue having exceeded management expectations. Over Xmas and the New Year there were multiple sell outs on a number of products, generating large waiting lists which have been satisfied by repeat orders.
Proteome Sciences PRM Unaudited revenues for the year to the 31st December rose by 18%, whilst at the same time, costs fell by 5% and the order book strengthened. Re organisation in the first half led to a stronger performance in the fourth quarter with robust and increasing demand. Despite that progress has been lower than management would have wished for and the company is still loss making although the loss is expected to hve been reduced from £ 2.9m to £ 2.1m.
Proxama PROX delivered a 75% rise in revenue during the year to the 31st December, accompanied by a significant reduction in costs led by a large fall from 60 to 23 in the number of employees. The directors expect to see a fall of at least 50% in costs for the full year. A new management team was appointed during the year giving the company a lean expert team with the right skills and the lowest ever cost base.
Proactis Holdings PHD expects to report a 123% rise in revenue for the six months to the 31st Januay and a rise of 183% in adjusted EBITDA. This surge follows the acquisition at the beginning of August of Perfect Commerce LLC which contributed 50% of the total revenue for the half year. The company is also on target to produce the £5m. of synergies expected for the full year.
Beachfront villas & houses for sale in Greece; http://www.hiddengreece.net
Ian Pollard – Copper And Oil & Gas Recoveries Help Weatherly & Hardide
Weatherly International WTN saw a noticeable improvement in the copper price during the year to 30th June, since when they have improved even further and reached three year highs. Operating and environmental challenges during the year meant that production fell below target but the board is cautiously optimistic about prospects for the current year.
Hardide HDD. Sales for the year to 30th September soared by 51% and reached record levels as demand from the oil & gas market recovered. The recovery continued throughout the year with second half sales up by 14%. The annual loss fell to £0.74m. from the previous years £1.3m before exceptional items. There are further signs of growth potential in the civil aerospace market and the company has gained full Aerobus Approved Supplier status for its UK site.
BAE Systems plc BA has entered into a £5bn contract with the government of Quatar for the supply of 24 Typhoon aircraft, with delivery expected to start late in 2022. In service support and a training package are also included.
Marlowe MRL Adjusted continuing revenue rose by 104% in the half year to the 30th September and adjusted profit before tax was up by 90%. The company has a well developed pipeline of acquisition opportunities and is well positioned to continue to gain further market share.
Sosander plc SOS Trading from the 31st August to the end of November has exceeded management expectations. Following new funds raised in November the business now has significant momentum with the ability to acquire a wider and larger range of products and accelerate media and marketing activities.
Premaitha Health NIPT has further expanded its European customer base with the addition of four new laboratories which will be full installed early in 2018 with the expectations that they will perform over 9,000 NIPT tests per year across the whole of Europe, generating annual income for the company of over £1m.
Waterfront villas & houses for sale in Greece http://www.hiddengreece.net
Quoted Micro 16 October 2017
NEX EXCHANGE
This month marks the 22nd anniversary of the launch of NEX Exchange, although it was then originally called Ofex. A number of companies have gone on to bigger things, including Genus, which is in the FTSE250 index and accesso Technology, which is one of the top 50 companies on AIM. Further information can be found at http://www.hubinvest.com/AIMPDFOctober2017_97.pdf
MetalNRG (MNRG) has applied for two cobalt licences at Palomino and north Palomino in Western Australia but a rival has applied for the latter licence. There has also been interest from potential acquirers of this interest. A report has been received about the company’s US cobalt interests and this is being reviewed. A potential uranium project has been brought to the company and it is considering the opportunity.
Indigo Holdings (INGO) has invested £10,000 in 3sootjobs, a job search platform in Iran, giving it a 1.53% stake. Turquoise, which owns 32.1% of Indigo, and related parties, including Indigo directors, own around two-thirds of 3sootjobs.
Ecovista (EVTP) has bought a 80% stake in a company that owns a four bedroom property near Stanstead and it has paid £10,000 for an option on the next door property. The properties cover 1.72 acres.
AIM
Parcel delivery company DX (Group (DX.) is raising £24m from an issue of convertible loan notes. The conversion price will be 10p a share and the interest rate 8%. There is potential to issue a further £2m of loan notes. Lloyd Dunn has been appointed as chief executive but he is not on the board. Along with three directors, he is subscribing for £5.25m of loan notes.
Angle (AGL) has further positive indications of the effectiveness of its Parsortix liquid biopsy technology and it has also raised a further £2.8m, taking the total raised at 37.5p a share to £15m. Heinrich Heine University researchers has been able to able to continue to grow circulating tumour cells harvested using a Parsortix device.
Fashion retailer Quiz (QUIZ) performed strongly in the first half and online sales have increased to one-quarter of the total. This was before the launch of a website focused on Spain and there are plans for other international websites. The UK stores grew sales by 15%. Overall revenues were 35% ahead at £56.1m.
Orogen (ORE) is acquiring Thread 35 Ltd and changing its name to Sosandar (SOS), which is the acquisition’s online womenswear brand. The brand was launched on 19 September 2016 by the founders of fashion magazine Look and is aimed at the affluent professional woman. Orogen is paying £6.3m in cash and shares for the acquisition. Ten Orogen shares are being consolidated into one new share. A placing at 15.1p a share will raise £4.8m net to cover the cash portion of the acquisition cost.
Toilet tissue supplier Accrol Group Holdings (ACRL) expects to pay between£550,000 and £2.9m and because of its guilty plea the amount will be discounted by one-third. The figure will be announced early next year. Talks continue with major shareholders and the bank.
Wynnstay Group (WYN) has appointed administrators to Just for pets and 18 of the stores have been sold to PSR Ltd. The other seven have been closed. The loss-making pet products retailer had net assets of £2.2m.
Crop enhancement products supplier Plant Impact (PIM) increased its full year revenues by 17% to £8.5m even though sales in Brazil were disappointing. Higher research and development spending meant that there was a £3m loss. There was £7.2m in the bank at the end of July 2017. Plant Impact is moving into new geographic markets as well as building share in its existing markets.
Motor dealer Vertu Motors (VTU) intends to use some of its cash to buy back up to £3m worth of shares. There was net cash of £20.8m at the end of August 2017. Interim revenues were flat at £1.45bn buy underlying pre-tax profit was 7% higher at £20.9m.
Patrick O’Sullivan, who failed to gain a board seat at Conroy Gold and Natural Resources (CGNR), has reduced his stake in the Irish gold explorer to three million shares (24.6%). Conroy was awarded costs of the court proceedings made by Patrick O’Sullivan and the level is still to be assessed. Conroy has decided to cancel its quotation on the Dublin-based Enterprise Securities Market on 6 November. Conroy will still be quoted on AIM so shareholder approval is not required. Andrea Gonella currently owns less than 3% of Conroy, having owned more than 6% in July. Conroy has raised €240,000 via a €0.30 a share placing and a further €167,000 was raised from warrants taken up by directors Professor Richard Conroy and Maureen Jones.
Digital Barriers (DGB) has decided to sell its video business for up to £27.5m. It will concentrate on its Thruvision people screening business.
InterQuest Group (ITQ) has appointed Allenby as its nominated adviser and Peterhouse as its broker so trading in the shares has recommenced. Chisbridge Ltd ended up with 58.3% of InterQuest after its bid. It still wants to ditch the AIM quotation and it can buy shares in the market in order to increase the stake.
Patient monitoring device developer LiDCO (LID) has gained its first long-term high use programme contract with a US customer but that did not contribute in the first half. In the six months to July 2017, revenues were 4% higher at £3.9m and the loss was £1m. That was due to higher sales and marketing costs without the benefits of higher sales yet showing through.
1Spatial (SPA) has sold its non-core assets so that it can focus on geospatial data. There is particular potential in the US market. Although interim revenues were flat at £12.1m but a greater proportion were from the geospatial business. The operating loss was reduced from £1.9m to £1.2m and the cash outflow in the period was minimal. Claire Milverton has been confirmed as chief executive.
Two graphene-related companies are raising cash. Applied Graphene (AGM) has raised £9m at 36p a share and existing shareholders are being given the chance to subscribe for up to £1m via a one-for-eight open offer. There was £4.7m in the bank at the end of July 2017. The cash is being used to finance joint development activity for the strategic ink programme, which uses 2D inkjet printing to deliver graphene-based inks. Other potential uses are also being explored. Haydale Graphene Industries (HAYD) is raising £10m via a placing and offer at 120p a share, which was a 32% discount to the market price. Haydale recently changed broker to Arden. The cash will be used to provide working capital for existing orders and to develop new uses for graphene, including cookware.
SaaS-based accounting software supplier FreeAgent Holdings (FREE) says that it generated interim revenues of £4.6m, compared with £3.6m. There was a smaller first half loss and had net cash of £3.4m at the end of September 2017.
Top level domain names owner and distributor Minds + Machines (MMX) has received approval from the authorities in China to sell .law, .work, .beer and the Chinese equivalent of .shopping. Four more extensions are going through the approvals progress. So far, revenues from China for .vip have been a significant contributor to group revenues.
A consortium led by former chief executive Peter Earl is in early discussions with Rurelec (RUR) about a bid that could be backed by Rurelec’s joint venture Patagonia Energy Ltd.
An application to enable Redx Pharma (REDX) to get back control of its main subsidiary will be heard on 26 October. If approved, the subsidiary will come out of administration and the suspension of trading in Redx shares could be lifted.
Realm Therapeutics (RLM) has completed the £19.3m placing at 29p a unit (one unit is one share and a warrant for 0.4 of a share). The warrants provide an opportunity to subscribe for a share at 58p each. The initial focus of the cash will be the treatments PR022 for atopic dermatitis and PR013 for allergic conjunctivitis. There are also plans for a phase II trial for the PR023 treatment for acne vulgaris.
PipeHawk (PIP) has sold its 28.4% stake in south east England-based survey practice SUMO Ltd to its own executive chairman Gordon Watt for £197,499. That is the equivalent of the investment in loss-making SUMO and is more than its value in the books.
Dr Cliff Holloway has been appointed as chief executive of Scancell Holdings (SCLP) and he will push forward the immunotherapy platforms being developed by the company. His predecessor Dr Richard Goodfellow is remaining on the board. Scancell had £2.67m in the bank at the end of April 2017, which was less than the cash outflow in the previous 12 months.
Ashanti Gold Corp says that the Anumso gold project, where Goldplat (GDP) is earning up to 75% through a $3m investment in exploration, has broader and new mineralised zones. Soil sampling has produced good results and suggests high gold recovery rates.
Former AIM company Zenith Hygiene has agreed a cash bid from BCPE Diamond UK. The deal values Zenith at £100m, based on its enterprise value, although the final amount depends on performance.
MAIN MARKET
Cash shell J2 Acquisition Ltd (JTWO) commenced trading on the standard list on 10 October, having raised $1.25bn. The shell is seeking a company with a strong market share and proven track record. If an acquisition is not made within two years, shareholder approval will be required for a further 12 months of operation.
Levrett (LVRT) has completed the acquisition of Nuformix Ltd for £12m in shares at 4p each and it has changed its name to Nuformix. A further £2.3m has been raised at 4p a share. Trading will recommence on 16 September.
Sealand Capital Galaxy (SCGL) has signed a memorandum of understanding with AIM-quoted MySQUAR (MYSQ) that will enable the two companies to distribute each other’s mobile games.
Monchhichi (MCC) still intends to follow Pembridge Resources (PERE) from AIM to the standard list but the move has been delayed until mid-November. This will follow shareholder approval for the €10m investment in artificial intelligence, machine learning and behavioural data science company Sentiance and the approval of the prospectus by the UKLA. Sentiance lost more than €2m on revenues of €1.4m in 2016.
WideCells Group (WDC) plans to launch its CellPlan insurance for stem cell treatment in Spain before the end of the year. A partner has been secured for the expansion of stem cell services in the Middle East, north Africa and Asia Pacific. White Apex General Trading will be exclusive strategic partner for three years.
Andrew Hore