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This week: Angel spreads its wings, new energy for Energetix and positive beats for Pulse
Now that the festive holidays have come to an end, the investment community reflects on a year which has seen a great amount of volatility in the financial markets, though the year closed with a small push upwards at 5,572 (some 60 points higher than the week before in the case of the FTSE 100) and 9 points higher for the AIM All Share (closing at 693 points). The new year so far has seen small but continuing upward momentum, largely on the back of a good host of data being released globally- this week so far has seen announcements on a fall in US unemployment, German exports ahead of forecasts, a rise in French industrial output and service sector activity in the UK growing at its fastest rate since July. The week ahead sees the MPC decision for the month on Thursday together with industrial production and manufacturing output data.
AFC - AkzoNobel plant starts generation, AKR Trading update, ALL Trading update, ABH Trading Update, BEM Operational Update, DEMG Pre-close update, DOTD Trading update, ECR Argentinian update, EDE.PL Licensing Agreement, EGX Full Steam Ahead, ESG New remittance service, FBT Gorilla Group chooses FORscene, GLR Equity Placing, HER Operational Update, IDGP.PL Proquis Acquisition, IKA Interim results, IME Contract Extension, INS Trading update, LID commercial deal signed, MNGS Trading update, NTOG Ultum Novus, PLE announces NED, POS Tullow Collaboration, PGRP.PL positive trading update, RMM Off-take Agreement, RENE published positive data, SLN research collaboration successful, SYNC Possible Offer, TRS Trading update, TIK Trading statement, TMZ Collaboration with Imagination, TRP Financing, VAL Finnish acquisition, SNCL audited preliminary results, and XEN deals closing update.
AFC Energy has commenced electrical power generation at AkzoNobel’s Bitterfield plant in Germany. Two Beta fuel-cell systems were installed in October at the AkzoNobel site; using AkzoNobel’s industrially produced hydrogen and AFC’s own manufactured electrodes. This is the first commercial reference site for the generation of data and demonstration of the whole Beta system, and results from this trial could prove significant in commercialisation of the technology.
Akers Biosciences, the designer and manufacturer of rapid diagnostic screening and testing products, last week announced a trading update. It reported that chiefly due to issues with an order from Pulse Health, revenues for 2011 will be significantly below expectations; turnover is now expected to be approximately $2.2m and pro forma losses in the region of $1.9m. The issues relate to the manufacture of the reagent for the product which was to be supplied to the Company by Pulse. Sales of the Company’s core product, the PIFA Heparin/PF4 Rapid Assay continued to show improvement with revenues 23 per cent higher at approximately $1.3m. The PIFA HPF4 test is the only FDA-cleared device that quickly determines if a patient, being treated with the blood thinner Heparin, may be developing a drug allergy that can result in blood clots and Q1 2012 will mark the launch of a product line extension of the Company’s growing heparin-allergy platform.
Allocate Software, the leading provider of workforce and compliance optimisation solutions, provided a trading update this week for the 6 months to 30 November 2011. The Company stated that it felt its operations were performing in line with its expectations for the period, with a robust pipeline of business in the UK Healthcare sector. The period saw the Company make two acquisitions- that of RosterOn and Zircadian (the UK based SaaS provider of software to the NHS), both in the healthcare space and helping to boost the volume of opportunities- twelve new contracts were awarded for HealthRoster during the period, in addition to a HealthRoster win in Malaysia/Brunei, four new customer wins for Dynamic Change, six new customer wins for Time Care and three NHS Trusts extending their HealthRoster licences. In defence, Allocate secured a multi-year multimillion pound licence extension with the Australian Defence Force that will extend the deployment of MAPS to all personnel, and the maritime business also secured an important new order with McDermott.
Angel Biotech (LON:ABH)*
The biopharmaceutical contract manufacturer today provided an update on trading activities for the six month period ended 31 December 2011. The Pentlands GMP unit continued to run at peak and the forecast shows that this will continue into 2013. Revenue for the period was £1,660,074 taking the total for the twelve month period to £3,062,074. Four contract extensions and amendments to the value of £127,436 were signed in the six months ended 31 December 2011. ABH forecast a loss for 15 months to 31 March 2012, primarily due to costs incurred in re-commissioning Cramlington and increased overheads as the Company builds capacity. In addition ABH has been unable to sign significant new contracts in the period due to capacity constraints at Pentlands which is fully utilised servicing existing contracts. ABH successfully raised £1.15m before expenses by way of a placing in December 2011. The funds will be used to accelerate occupation of the Cramlington facility, complete the joint venture implementation with MMH and provide general working capital. Work to re-commission the Cramlington GMP facility is progressing ahead of schedule on the Q1 2012 schedule for completion given in the Interim statement and recruitment is underway. Work to support the MHRA application for re-licensing will begin in mid-February. This will involve moving two of the current Pentlands programmes into the facility to provide validation data for re-licensing. Dr Stewart White joined the Board in the newly created post of Commercial Director. The current value of bids for new business is more than £12.5m. These prospective clients are based mainly in the US and await confirmation on the availability of manufacturing slots at Cramlington. All are of a size and nature such that they could not be undertaken without access to the facilities at Cramlington and a number have indicated a need for the contracts to commence before June 2012. The legal agreements to activate the joint venture arrangement with Materia Medica are well advanced. Plans are being drawn up to increase the proportion of GMP space within the facility by 260 sq m thereby preserving the existing capacity for new clients. Dr Paul Harper, Executive Chairman of Angel Biotechnology Holdings Plc, said: "We expect fiscal 2012-2013 to be an exciting period for the Company with the need to fill capacity in Cramlington and return to profitability. The business development team has made very good progress particularly in our target market, the USA."
Beowulf Mining (LON:BEM)
Beowulf the mineral exploration company which owns several exploration projects in Sweden announced that further to its release made on 8 December 2011, its wholly owned subsidiary, Beowulf Mining AB, has temporarily suspended its new drilling campaign at Kallak North pending receipt of formal approval of its work plan from the Swedish Mining Inspectorate. Due to an administrative oversight by the Company, the new 2011/2012 work plan for the Kallak North site had not been filed with the Mining Inspectorate prior to drilling commencing, which constitutes a technical infringement of the Swedish Minerals Act. The previous work programme which had been in place expired in late 2010. The Company can confirm that its new work plan for Kallak North has now been duly filed and notified and, accordingly, operations have been voluntarily halted pending completion of the requisite consultation process with the local communities and the Mining Inspector.
Deltex Medical Group (LON:DEMG)
Global leader in oesophageal Doppler monitoring (ODM) announced an update on its trading performance for the year ended 31 December 2011. UK surgical probes continued 20 per cent growth and the installed base of monitors, the engine for future growth, increased from 450 to 520 in UK operating theatres. Sales for 2011 were in excess of £6.3m largely reflecting December sales deferred into 2012 and the cash position was £0.8m. Deltex Medical enters 2012 with the foundations in place to underpin long term and accelerating growth in all its key markets. In the UK the NHS Chief Executive announced in December 2011 the decision to implement fully ODM or similar fluid management monitoring technology across the NHS: CardioQ-ODM is the only fluid management monitoring technology recommended by the National Institute for Health & Clinical Excellence (NICE). The NHS is committed to launch its national drive on ODM by early March 2012. In the USA, Deltex has initiated a number of projects aimed at both increasing sales and positioning CardioQ-ODM for wide-scale adoption. December was a new record month for UK probe sales, exceeding £300,000 for only the second time ever, although the effects of the NHS / NICE decision are yet to be fully felt. Nigel Keen, Deltex Medical's Chairman, commented: "Deltex Medical enters 2012 with considerable confidence and growing traction in a number of key markets....The financial crises facing most developed economies are having two effects on our business. Firstly our revenue mix is being pushed from capital sales towards higher proportions of higher quality recurring revenue streams: we believe we have now absorbed the worst of the ensuing short term revenue loss from this transition. Secondly healthcare systems are being pushed to address the need to deliver better care, better health and lower costs: this is exactly what we offer and there are few bigger or better evidenced opportunities for health systems than ODM."
dotDigital (LON:DOTD)
dotDigital Group, which provides search marketing services, digital strategy advice, intuitive software as a service and managed services to digital marketing professionals, has announced that revenues in the six months to December 2011 increased by around 30 per cent year-on-year. The strongest growth came from managed services, up 57 per cent, followed by the e-mail marketing business, which grew 37 per cent year-on-year. The management expects the initiatives taken in 2011 to develop new opportunities through channel partners to start delivering incremental growth in 2012. To support its growth plans, the company is recruiting skills in a number of areas including business process change, software development, user experience design and search marketing.
During the first two weeks of January, the Company intends to re-enter and sample a number of locations within historic mine workings at the El Abra gold prospect. This information will supplement that obtained by the El Abra drill programme, which is now planned to commence during February. The results of the Company's underground sampling are expected to be available during January. Samples from the El Abra gold prospect and a number of other prospects within the Sierra de las Minas project area are presently undergoing metallurgical testwork in Australia. The results of this work are expected in January and are intended to facilitate detailed consideration of processing options for high grade material from El Abra and other prospects at Sierra de las Minas. The exploration and metallurgical programmes will focus on the feasibility of toll treatment of high grade material from the El Abra prospect. Should this work prove to be positive then emphasis will be directed towards creating an early cash flow commencing in the second half of 2012.
Eden Research (PINK:ERCHF)
The agrochemical and encapsulation company announced last week that Teva Animal Health Inc. has entered into a formal licensing agreement with Eden by exercising an option it previously had. The agreement covers the North American Free Trade Agreement region and gives Teva exclusive rights to develop, manufacture and market products for common bacterial, fungal and parasitic pathogens in veterinary health. A licence fee of $100,000 is to be paid in consideration, together with further milestone payments of $800,000 and royalty payments once sales of the product begin. The Company has been in discussion with Teva since early 2010, with management believing that the execution of the option demonstrates the efficacy and commercial potential of the Company’s products.
Energetix has been drinking Getafix’s potion: The Company which develops and commercialises alternative and efficient energy products, announced that it has now received full Type Registration status from National Grid (NG. 624p/£22.2m) for its Energetix Pnu Power Compressed Air Energy System solution, Type SU4. This provides an alternative solution to conventional batteries for uninterruptible power supply and standby power applications. The SU4 costs less to operate, is cheaper to maintain than conventional battery solutions and is consistently dependable. Pnu Power solutions are targeted to replace existing legacy lead/acid battery installations. Energetix also announced that its subsidiary Genlec has received an order from Calor Gas for the development and delivery of the first prototype liquefied petroleum gas (LPG) appliances. In conjunction the companies will co- develop and commercialise an LPG variant of the Company’s Kingston microCHP product. This should also allow it to address the 2m off-gas grid homes in the UK and through Calor Gas’ parent, SHV Energy, to give access to more than 25m properties across Europe. In parallel to the development and testing of the LPG appliance, Calor Gas and Genlec have agreed to negotiate the terms of a commercial agreement to train its Calor Force installation and after care service personnel, and develop a sales, marketing plan and launch plan for the product. In addition Calor Gas would establish a distribution route and commit to minimum purchase volumes in exchange for exclusive use of the LPG Kingston microCHP product.
eServ Global (LON:ESG)
The mobile phone payments company has announced the launch of new mobile remittance services between the U.K., Morocco and the Philippines for the HomeSend payments service, which comes after an agreement between its business partner, the mobile services group BICS, and the financial services group Lycamoney, the financial services division of Lycamobile UK and affiliate of the multinational operator group, Lycatel. Lycatel is one of the leading MVNO's in Europe with over 6 million customers and a particular focus on providing services to the pre-paid international immigrant and expatriate community, the most likely to use mobile money and international remittance services. UK migrant workers sent home over $1.2bn in 2009, according to the World Bank.
Forbidden Technologies (LON:FBT)
AIM quoted developer of the market leading Cloud video platform FORscene yesterday announced today that Gorilla Group has chosen to use FORscene as its logging and rough cut editing platform. Gorilla Group is the largest post production facility in Wales. Based in Cardiff, Gorilla has helped to post-produce many well known television programmes including Bruce Parry's Amazon and Arctic, Grandpa in my Pocket, Time Team and Whites. As an integrated part of the Gorilla post production workflow, FORscene will now be accessible to all Gorilla clients whenever they need it and wherever they may be.
Galileo (LON:GLR)
Galileo Resources an emerging African Rare Earth minerals exploration company, raised £1.7m. before expenses via a placing of new ordinary shares at a price of 35 pence. The proceeds of the Placing will be used to increase the rate of exploration and development at the Company's Glenover Rare Earth Project near Thabazimbi, South Africa over and above the programme set out in the Company's Admission Document. The Directors estimate that the Company should now be able to earn an interest of up to approximately 35 per cent in Glenover. The additional work provided for by the Placing is focused towards Phase 2 ; comprising resource estimation, mining, and flow sheet option analysis selection development and definitive feasibility study with further exploration of in-situ resources arising, if any, out of the Phase 1 results.
The Northern Chilean miner has provided an update on the geophysical program at the Guamanga and Paguanta Projects. Guamanga (earning Herencia 51 per cent), which is a copper-gold project, has had geophysical survey work completed over the site, the results of which support the previous recommendation that drilling be carried out on these geological targets. A shallow diamond drill program has already been completed on the site, with eleven holes having been dug out ranging from 60m to 122m in depth, with assay results anticipated in February. In Paguanta, which is a Zinc-Silver project (earning Herencia 70 per cent), the feasibility study continues with the detailed mine planning phase scheduled to commence this month. Having announced high grade assay results from the Patricia drill programme at Paguanta back in October, the Company appears to be continuing to make good progress.
Ideagen (PLUS:IDGP)
Ideagen, a leading supplier of On-Demand Information and Compliance Solutions, announced the acquisition of Proquis Limited, a leading developer and supplier of compliance and quality management software provider to highly regulated industries, in particular in the Aerospace & Defence, Healthcare, Energy and Complex Manufacturing markets. Proquis is expected to add significant new clients, scale and competence to the existing Ideagen compliance business. In November 2011, Proquis won a landmark contract with the US Government Department of Veterans Affairs expected to be worth approximately $10.6m in revenue over 5 years. Ideagen paid an initial consideration of £1.04m with potential additional deferred consideration of up to £2.2m, in a combination of cash and shares.
The clean technology materials discovery company has reported revenue growth of 37 per cent year-on-year for the six months to October 2011. Gross profit increased by 68 per cent, which helped reduce operating losses by 17.2 per cent. The Company continues to progress with new partnerships, contract renewals and increased business development activity in the US and Asia. The first electronics customer has been secured in the US, while new customers have been signed in Asia. This includes a contract with the Toshiba Research and Development Centre in Japan for the development of electronics materials, making Toshiba the sixth major Japanese multinational customer.
Immedia Group (LON:IME)
Immedia, which provides marketing services consisting of bespoke radio and in-store media solutions for retailers, has won an important new contract with HSBC which extends broadcasting of HSBC live through to Q4 2014. HSBC live is a successful music and communications channel for their retail banking environment and this extension was won as a result of a competitive tender process. The Company provides its services to a wide variety of large and small customers, and has created a collection of generic music channels for a wide variety of retail business sectors which will enable Immedia to deliver content in the UK as well as other EMEA territories. Clients currently include Game, IKEA and SPAR (a service which was launched nearly ten years ago, and now having become one of the most well established in-store radio stations in the UK). The latest contract win is important given that it announced last week the termination of a contract with Lloyds Pharmacy.
Instem Life Sciences Systems (LON:INS)
Instem, a leading provider of IT applications to the global early development healthcare market, this week announced a trading update. Trading in the last quarter of 2011 has been mixed with conservative investment policies by contract research organisations delaying some orders. As a consequence, turnover for the year is only expected to be slightly ahead of last year while profits will be materially below market expectations; the cash position remains strong at £3.3m (2010: £3.3m). The Company added that whilst the shortfall in revenue is very disappointing, the Board is encouraged by the strength of recurring revenues and the opening backlog position for 2012.
LiDCO Group (LON:LID)
UK-based hemodynamic monitoring company yesterday announced the signing of a licensing and commercial collaboration agreement with CNSystems Medizintechnik AG in Austria. This collaboration will provide LiDCO with a continuous non-invasive blood pressure (CNIBP) module that can be integrated with the existing LiDCOrapid monitor. This integrated CNIBP module will provide continuous non-invasive blood pressure data from a simple to use dual finger sensor. The development is expected to complete in approximately one year and will be funded by LiDCO. The existing base of monitors will be able to use the CNIBP module with a simple software upgrade.
Manganese Bronze Holdings (LON:MNGS)
Manganese Bronze, the leading manufacturer of the distinctive London Taxi, this week reported that trading continues to be impacted by the weakening UK economy and uncertainty over global macro economic conditions. In the year ended 31 December 2011, 1,502 vehicles were sold compared with 1,653 in 2010, a fall of 9.1 per cent. The Company has also experienced some delay in the fulfilment of orders to the transport authorities in Azerbaijan (which will now be recorded in 2012) and international sales for the year were 705 (2010: 226 vehicles). As a result of these developments, the Company does not now expect to make a profit for the financial year and any continued softening of global economic conditions would mean that the Company is likely to fall short of meeting current expectations for 2012. However, on the positive side, relationships with Geely, the Chinese automotive group, continue to be positive as they continue to work together closely on the launch of Geely products in the UK later this year, the development of the TXN, the saloon-car based taxi scheduled for introduction in 2014, and other business opportunities.
Nostra Terra Oil & Gas (LON:NTOG)
Nostra Terra, the oil and gas producer with projects in the USA announced that it has entered into an agreement with Crown Energy Company Inc. to acquire a 10 per cent working interest in the Warrior Prospect, located in Oklahoma. The Warrior Prospect lies within a prolific oil system, proven to produce from multiple, stacked-pay reservoirs. Leasing, pooling and permitting of the initial well are already complete. Drilling of the initial horizontal well is anticipated to begin during the first half of 2012, along with construction of all production and transmission facilities. Up to five additional horizontal wells may be drilled on the prospect in the future and tie into the infrastructure that is being installed for the initial well. The development budget for the prospect, including current acreage (800 acres), cost to drill and complete the initial test well, and cost to drill and complete a salt water disposal well if required, is $1,926,800, of which Nostra Terra's estimated portion is US$192,680. The seismic program was successfully completed at Bale Creek, and an initial drill location selected. A drill rig has now been secured and is scheduled to be on location in January. The Company will make a further announcement in due course. Further to the revised agreement with Richfield Oil & Gas, a 30-day extension to the repayment period of the $1.3m loan note has been granted to Richfield by the Company. Settlement of the outstanding amount is now anticipated on or before 31 January 2012. A further announcement on this matter will be made in due course.
Plethora Solutions Holdings (LON:PLE)*
On January 6th the specialty pharmaceutical company Plethora announced that Jim Mellon was appointed as a Non-Execute Director with immediate effect. Jim Mellon has an established reputation in fund management and he also owns 10 per cent of the Company’s shares indirectly. The Company also announced that its CFO, Ronald Openshaw, was appointed CEO, which he will hold in conjunction with the CFO role for the foreseeable future.
Plexus Holdings, the owner of the proprietary POS-GRIP(R) method of wellhead engineering, announced that Tullow Oil has signed up as an additional consulting partner to Plexus' Joint Industry Project (JIP) to develop and commercialise a new and safer subsea wellhead, utilising Plexus' patented POS-GRIP technology. This follows the news released 21 November 2011 announcing that Maersk Oil North Sea UK Ltd, Shell International Exploration and Production B.V., Wintershall Noordzee B.V., the UK entity of the world's largest offshore drilling company and SafeKick Ltd had all signed up as consulting partners to the JIP. The JIP is focused on developing a new subsea wellhead, the HGSS(TM), which will be designed to address key technical issues and requirements highlighted by regulators following the Gulf of Mexico incident in April 2010. The JIP will see key industry members contributing to the design and engineering process with the intention that they become end-users once the wellhead has been fully built, tested and commercialised. The project is anticipated to take between 18-24 months at a cost of approximately £1.5m to £2m. Any intellectual property generated by the project will be owned by Plexus.
Pulse Group (PLUS:PGRP)
PLUS-quoted leading digital market research agency in Asia yesterday provided a positive update regarding its activities. Over the last twelve months, Pulse has announced a number of new contracts and that it has appointed Wiryadi Hamidon to drive client development and government liaisons in the Singapore market. Pulse Chairman Bob Chua said: "Companies continue to chase growth in the Asia Pacific region and as these contracts demonstrate, our proprietary technology and flexible approach enable us to provide highly accurate online data to companies operating across a diverse range of sectors looking to build their presence in this market.”
Rambler Metals and Mining (LON:RMM)
The Canadian gold and copper producing mining company has signed its first off-take agreement for its copper concentrate production from the Ming Mine with the Transamine Trading Company. This agreement will see the sale of 85,000 tonnes of copper concentrate over an initial six year period. The agreement also includes a provisional payment for concentrate as it arrives at the Goodyear's Cove port facility, which will ensure steady cash flow to the company as soon as concentrate production begins in 2Q 2012.
A few weeks ago, ReNeuron announced positive data from a pivotal pre-clinical study using its lead CTX neural stem cell line in a stroke model has been published on line in the leading journal Stem Cells. The first clinical application for the CTX cell line is ReNeuron’s ReN001 stem cell therapy for disabled stroke patients, currently in Phase I clinical development. The newly-published data show significantly improved outcomes in the key behavioural tests in the CTX cell-treated group in a validated rodent model of stroke disability. These results build on the findings of previous efficacy and mode-of-action studies with the CTX cells, confirming their efficacy in models of stable state stroke damage and providing further evidence of the ways in which the cells may promote recovery of function in these models. Dr John Sinden, Chief Scientific Officer of ReNeuron, commented:
“The data from this study also fully validate the clinical approach adopted in the ongoing PISCES clinical trial with our ReN001 stem cell therapy for disabled ischaemic stroke patients.”
Silence Therapeutics (LON:SLN) *
Silence Therapeutics, a leading RNA interference (RNAi) therapeutics company, announced its successful completion of two research collaborations with MedImmune, the biological arm of AstraZeneca. In the first collaboration into small interfering RNA (siRNA) molecules, three out of the five research programs have been declared as “Accepted Programs” meaning they can progress into the pre-clinical stage. AstraZeneca retains the global commercial rights to the Accepted Programs and Silence retains the rights to the other two programs. The second collaboration led to the development of a novel delivery system of siRNA that Silence retains all rights to.
Additionally, Silence announced that it will be working with miRagen Therapeutics, a pre-clinical biopharmaceutical Company that aims to use microRNA (miRNA) therapeutics to treat cardiovascular and muscle disease. In this third collaboration between the companies, research will be carried out to test Silence’s proprietary delivery system with miRagen’s miRNA sequences. The financial arrangements of the partnership were not disclosed.
Synchronica (LON:SYNC)
The Board of Myriad Group (MYRN.S) confirmed that it is in preliminary discussions regarding a potential transaction which may or may not lead to an offer being made for Synchronica. The potential acquisition would enhance Myriad's position as a global leader in mobile messaging software, serving (on a combined basis) more than 100 mobile operators and over 20 handset manufacturers, while delivering operating efficiencies through significant synergies. Synchronica's complementary technology added to Myriad's existing unrivalled portfolio would provide an additional opportunity for the combined organisation to drive growth. In accordance with the City Code on Takeovers and Mergers, Myriad has until 5.00 p.m. on 31 January 2012, to either announce a firm intention to make an offer for Synchronica or that it does not intend to make an offer.
The international business-to-business media group has reported that 2011 ended strongly with record revenue and profitability. The Group like-for-like organic revenue growth, at constant exchange rates, increased by approximately 8 per cent. Excluding France, organic revenue growth was around 13 per cent. Cash flow remained strong with net debt at 31 December 2011 at approximately £14m ahead of company’s expectations and halving debt since the beginning of 2011. The Group’s focus continues to be on large exhibitions and the active management of its portfolio. In addition to the disposal of Modamont in France in Q4 2011, Tarsus has also recently sold its small online businesses in both the UK and the US. At the same time, the company is increasing its exposure to Emerging Markets, whereby 50 per cent of Group revenue will be sourced from Emerging Markets by 2013. This strategy has already yielded tangible results with the acquisition of IFO in Turkey and notable growth from the Middle and Far East businesses.
Tikit, a leading provider of consultancy, services and software solutions to law firms and accountancy practices, last week commented on trading for the year ended 31 December 2011 ahead of its preliminary results later this year. Trading remained strong in the second half of the year and results for the full year are in line with market expectations. The Company reported that it had finished the year strongly and has secured a pipeline of implementation work, which combined with the focus on recurring revenues from its support services and sales of Tikit-developed software, provides the Board with confidence for continued growth in 2012.
Toumaz, the developer of ultra-low power wireless communications technology, has established a new fabless subsidiary, Toumaz Microsystems, which will be responsible for its growing wireless IC business. Toumaz has secured investment from Imagination Technologies Group (IMG 574p/£1501.45m) as a strategic partner for this business. Toumaz will own 75 per cent of Toumaz Microsystems and has moved its silicon Integrated Circuit (IC) design team and related assets to the subsidiary. Imagination will invest a combination of cash, certain licences to Imagination's hardware and software technologies, and supporting engineering resources, worth £5m, in Toumaz Microsystems and will own 25 per cent of the business. This move is part of Toumaz’s refocusing of its semiconductor and healthcare divisions into two subsidiaries, the other being Toumaz UK.
Tower Resources the exploration company with assets in offshore Namibia and Uganda, has entered into an £8m Standby Equity Distribution Agreement (SEDA) and a US$3.125 m. SEDA-backed Loan Agreement with YA Global Master SPV Ltd, an investment fund managed by Yorkville Advisors LLC in order to provide flexibility over future funding, and in part to fund the costs of drilling the third and final commitment well, Mvule-1 on Tower's EA5 licence area in Uganda. Global Petroleum Ltd had retained an option to earn an interest in EA5 as a result of its contribution to the funding of the first two wells. Accordingly, Global carried out an independent technical review of the Mvule prospect, to its satisfaction. Following further discussions between the two companies, however, Global has ultimately chosen not to take up its option.
ValiRx, a life science company focusing on cancer diagnostics and personalized medicine, announced that its subsidiary ValiFinn Oy has acquired a biomarkers business and 5 families of patents, patent applications and intellectual property from Finnish firm Pharmatest Services Oy. Payment was made with 75,000 euros and 15,000,000 ordinary shares. These shares are equal to existing shares and the new issue increases the total number of ordinary shares by 1.4 per cent. There is also an obligation to pay Pharmatest royalties for any revenue derived from the patents or intellectual property. The biomarkers business will form a new division of ValiFinn and its expertise could be leveraged in other parts of ValiRx. The business also provides another revenue stream through its contract research services to pharmaceutical companies.
William Sinclair (LON:SNCL)
William Sinclair Holdings is one of the UK's leading producers of commercial horticulture and branded garden products. William Sinclair saw a 54 per cent increase in profit before tax to £3.18m (vs. FY 2010: profit before tax of £2.06m) and the dividend was increased by 24 per cent for the year to 6.2p, an increase of 1.2p per share. Net cash increased after acquisition costs, dividend growth and accelerated pension contributions, and so with a strong balance sheet, further acquisitions are targeted. Bernard Burns, Chief Executive, William Sinclair Holdings plc, said: "With strongly developing strategic advantages in key areas of the market that provide promising growth prospects, we are in the best position possible to manage any further deterioration in consumer spending during 2012." The Company made two related acquisitions during the financial year and these, combined with a strong performance from the Silvaperl business, meant that sales grew by 12.0 per cent. Through its award winning New Horizon product William Sinclair already produces the highest quality peat free products available on the market and the Company supports and encourages moves to eliminate peat altogether. However, the Board believes that a peat free market will not be achieved in any reasonable time frame without legislation. William Sinclair has the capacity to meet this demand with access to peat bogs in Scotland that are not currently operational and additionally, it is fully expected that the refusal of planning permission to harvest peat bogs in Greater Manchester is only temporary.
The bio-pharmaceutical company specialising in the development of high-value differentiated biologic drugs and vaccines last week announced an update in relation to completion of the proposals set out in the Shareholder Circular of 4 August 2011, and as approved by shareholders at the Company's General Meeting held on 2 September 2011. The Company recently announced that completion of the acquisition of SymbioTec GmbH was expected to occur by no later than 31 December 2011. This has not proved possible, inter alia as a result of certain new disclosures that have been made by the Sellers in relation to warranties to be given at Completion and in relation to the conduct of SymbioTec's affairs since 4 August 2011. Consequently, the Xenetic Board has informed the Sellers that, unless final terms satisfactory to the Company are concluded by no later than close of UK business on 16 January 2012, the Acquisition process will be terminated. One consequence of the foregoing is that the Company therefore now expects to conclude all of its proposed arrangements with the Serum Institute of India under the Master Agreement by no later than 20 January 2012. With respect to the proposed Open Offer, the Company will monitor near term market conditions, to determine whether the Open Offer should be pursued.
*A corporate client of Hybridan LLP
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The Hybridan Small Cap Wrap is a weekly review of some of the most interesting small cap stories of the past week. Our review will usually be of those companies whose market capitalisations are less than £50m although we may occasionally cover larger companies.
