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This week: Acta Cleans up, Ingenious cashes up and One Media Revenues Up

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The major indices continued to be under pressure last week, with the FTSE 100 losing another 106 points to 6,305 and the AIM All share falling another 6 points to 713. Concerns over monetary policies or their effectiveness, and subdued growth in China remain the key obsessions. The mining sector continues to bear the brunt as more and more institutional investors appear to be abandoning this space. However, markets have kicked off this week on a more positive note with defensive sectors such as household goods outperforming. The main macro event this week is likely to be comments from the Federal Reserve after the FOMC rate decision on Wednesday. On Thursday, sentiment may be driven by Initial Jobless Claims in the US and UK Retail sales. 

AAU £1.25million Subscription and Equity Swap, ACTA EU grant funding, COMS Three acquisitions, ECR Placing to Raise ££450,000, EGX Change of name and supply contracts, FBT FORscene used on The Voice, GAL Resource Estimate Update, HDD Interim Results, IFM placing and trading update, IMAC Sale of Digital Rights Group, KEFI Exploration Update, KYS Independent Technical Report, LID Trading update, LRL Operational update, MTL Issue of Equity, NEW Extension in Denmark, OMIP half yearly report and acquisition, PGL Operational Update, POLY Listing on Moscow Exchange, PRM Major technology contract, RGO Placing and new management, SGO Issue of Equity, SOLG Exploration Update, SORB Interim Results, SPRP Tender Update, SUMM milestone from Wellcome Trust & CMO appointed, TEG new contract, TRCS Trading Update, VAL 201 Update, VRS first day of dealings on AIM

2ergo Group (LON:RGO)

2ergo Group, the mobile solutions company, has conditionally raised £3.1m (before expenses) through a placing at a price of 1p, and the subscription by certain directors for a total of 54m new shares also at a price of 1p. MXC Capital is a cornerstone investor in the placing. MXC Capital is a specialist investment and advisory group with proven expertise in investment, strategy and funding, focused particularly on the technology sector. The new shares represent, in aggregate, approximately 80 per cent of the Company’s enlarged share capital. The proposed New Board will devise a focused strategy for podifi to more effectively penetrate the rapidly growing, evolving and converging space of mobile couponing and loyalty. Ian Smith, the proposed Executive Chairman of the Company, is a founding partner and shareholder of MXC Capital and will exploit his experience and contacts across the industry to develop larger enterprise opportunities and explore other applications of the Company’s patented technology. The new Board will also include Neale Graham, the current CEO, as an executive director and Simon Duckworth as an independent non-executive Director. Subject to the placing becoming unconditional in all respects, Barry Sharples, Keith Seeley and Peter Kenyon will resign as directors.

Acta (LON:ACTA)

Acta S.p.A, the clean energy products company, has received a first stage payment, amounting to €182,000, in relation to the EU-funded Alkammonia grant project, the conditional approval of which was previously announced on 18 December 2012. The €1.96m Alkammonia grant project has been funded by the EU Fuel Cells and Hydrogen Joint Undertaking to develop ammonia-fed alkaline fuel cells, and is led by project leader AFC Energy Plc (LON:AFC). The Company is due to receive up to €395,000 in total for its participation as partner over the three-year life of the project. Acta will be providing an ammonia cracking reactor and catalysts to the project. Ammonia has high hydrogen content and can be easily converted to hydrogen by processing (cracking) it through a catalyst. Acta's ammonia catalyst contains no precious metals and performs better than commercial platinum group metals catalysts in converting the ammonia to hydrogen, which, in turn, powers the fuel cell.

Ariana Resources (LON:AAU)

Ariana Resources, a Turkey-focused gold miner, signed an equity swap agreement and also conditionally raised £1.25 m, before expenses, to help develop the Company's Red Rabbit Project in western Turkey. The investment provides Ariana Resources with sufficient capital to proceed to the construction phase of the Kiziltepe mine as the Company progresses its near term intention to become a producer. The funds will also be used to continue exploration in the wider Red Rabbit Project Area and for general working capital. The Company is expecting to finalise environmental and various construction permitting matters during the third or fourth quarter of 2013 in order to enter the construction phase by year-end, once mine finance is secured at the Joint Venture company level.

Coms (LON:COMS)

Coms announced it has acquired two sets of telecoms and IT hardware used in providing data networks. The Company has acquired one of these from the Company's CEO, Dave Breith for a price of £200,000. In addition it has acquired another set of assets from TFM Networks Limited for a consideration of £480,000. Both acquisitions are payable in Coms ordinary shares at a price of 2.7 pence per share for the TFM assets and 3 pence for the Dave Breith assets. For a period of three months, all parties have agreed not to sell any shares without the permission of the Coms plc board. Coms has also acquired the entire issued share capital of Premium O Limited for a consideration of £1.8m payable entirely in Coms ordinary shares at a price of 3 pence per share. The consideration will comprise an initial consideration of 80 per cent, with 20 per cent deferred until Premium O has generated for Coms an additional gross margin of a least £55,000 per month for at least three months. Once this condition has been satisfied, the issue of the shares is at the option of the individual Premium O shareholders. David Breith has a 59.5 per cent interest in Premium O. Following the issue of the initial shares, David Breith will hold 136,186,455 ordinary shares representing 25.28 per cent of the Company.

ECR Minerals (LON:ECR)

ECR Minerals, a mining company active in Asia and South America, announced the placing of 450 m new shares at a placing price of 0.1 pence each, to raise £450,000 before expenses. The proceeds will be used to: Complete due diligence on the Itogon gold-silver project in the Philippines and continue to liaise with the authorities there with regard to renewal of the exploration permit pertaining to the project for a second 2 year term: Procure a buyer or joint venture partner for its owned Sierra de las Minas gold project in Argentina: And liaise with the administrators of its Australian subsidiary, Mercator Gold Australia Pty Ltd, with a view to seeing the administration process concluded, thus paving the way for a transaction to take advantage of subsidiary’s tax losses.

Energetix Group (LON:EGX)

Energetix Group, which develops and commercialises alternative and efficient energy products, will change its name to Flowgroup plc following shareholder approval at the recent AGM. This will become effective once the Companies House has issued the certificate of incorporation on change of name and a further announcement will be made to confirm the change of name and trading under the new Company ticker FLOW.The Company has also announced that it has signed two key supply contracts, the first with Eaton-Williams Holdings Ltd., and the second with Malvern Boilers Ltd, for the production of its Flow microCHP gas boiler. Confirmation of these key manufacturing partners, as well as the timetable for the first domestic installations of production units, represents another significant positive milestone for the Company. It now intends to manufacture 100 Flow microCHP production units for domestic installation during the winter, under a pilot programme to validate the reliability of the volume production unit.

Forbidden Technologies (LON:FBT)

Forbidden Technologies, the owner and developer of the market leading Cloud video platform, FORscene, has announced that Wall to Wall, part of the Shed Media Group, is using FORscene for series two of The Voice UK, for BBC One. Over 2,500 hours of series two's content has been ingested. This material was first made searchable and manageable using FORscene's advanced logging functionality. FORscene was then used to edit sequences and add additional information, via markers, making the platform an essential, integrated part of the post production work flow. Stephen Streater, CEO of Forbidden Technologies, said: "I am delighted that a showcase BBC production is making greater use of FORscene as it moves from one series to the next. I am pleased that more and more productions are extending their use beyond simple logging, using FORscene's editing features to streamline their post production process."

Galantas Gold Corporation (LON:GAL)

Galantas Gold Corporation, a gold producer and explorer, provided a summary of an updated resource estimate relating to its wholly owned, operational, gold project at Omagh. The drilling program, subsequent to June 2012, was targeted to increase the amount of Measured and Indicated Resources, to increase the confidence of loan finance providers, related to the potential development of an underground mine. There has been an overall increase of 50 per cent in Resources classified as Measured and Indicated from a total of 95,300 troyoz gold (2012) to 142,533 troyoz gold and a 28 per cent increase in Resources classified as Inferred, from 231,000 troyoz gold (2012) to 295,599 troyoz gold. The unaudited, estimated cost of the drilling program was approximately £927,000.

Hardide (LON:HDD)

Hardide, the provider of advanced surface coating technology, announced its interim results for the six months ended 31 March 2013. Turnover decreased by 18 per cent to £1.26m (H1 2012 £1.54m), primarily as a result of a major inventory adjustment by a dominant customer. Gross profit decreased by 23 per cent to £855,000 (H1 2012: £1.12m), but revenue from aerospace and advanced engineering sectors increased by 37 per cent and the number of active accounts rose by 34 per cent to 39 from 29 in H1 2012, reflecting the focus on strengthening the pipeline. Cash was £1.39m. Commenting on the interim results, Robert Goddard, chairman of Hardide Plc, said: "Our 2013 half year results have been weakened primarily by a rapid inventory reduction exercise by one major customer. This has resulted in what is expected to be a short-term dip in demand and projected to be resolved by the end of 2013. The Company is achieving positive developments technically and with other customers. So, while this set-back is disappointing, the confidence of the Board remains high”.

Ingenious Media Active Capital (LON:IMAC)

The Board of IMAC announced that it has sold its entire shareholding and loan stock in Digital Rights Group Limited (DRG) to Modern Times Group (MTG), a Stockholm-based international entertainment broadcasting group, for a cash consideration of £13.2m. £0.8m of this consideration will remain in escrow for up to 18 months. The outstanding loan notes and accrued interest owed to IMAC by DRG at the time of the sale amounted to £7.1m. Including prior loan note repayments, IMAC will receive a total of up to 2.0x cash return on its original investment in DRG of £8.3m. Following completion of the disposal, IMAC's cash balances will amount to approximately £21.6m (equivalent to approximately 15p per IMAC share). In addition, IMAC retains its portfolio investments in Whizz Kid Entertainment Limited, Brand Event Holdings Limited, brand Rapport Group and Review Centre Limited which, as at 30 September 2012, were valued in IMAC's balance sheet at approximately £10.5m. While to date the investing policy has been to return where possible the proceeds of any disposals to shareholders, the Board of IMAC believes that the outlook for the media sector has significantly improved since 2010 and that there are likely to be a number of potential investment opportunities. Furthermore, the Board has been very encouraged by the performance of its fund manager, Ingenious Ventures, in successfully realising investments. Accordingly, the Board intends to review with Ingenious Ventures and key shareholders the options for the future development of IMAC. 

Intandem Films (LON:IFM)

Intandem Films, the London based international film group, has announced that it has conditionally raised £831,000 (before expenses) by means of a placing at a price of 0.5 pence to new and existing investors. The Company has also entered into a £1m Equity Financing Facility over a period of 36 months. The Company intends to utilise the proceeds of the Placing to pay down short term debt, to secure select commercial projects and for general working capital purposes. Since the appointment of Robert Mitchell as CEO in February of this year, the Company has continued to make progress in the development of the current slate of films. There are nine fully contracted films in the slate of which four are fully financed, including: Killing Hasselhoff, a comedy thriller starring David Hasselhoff, Starbright, and Second Origin, both sci-fi love stories, and Isolated, a psychological thriller. Intandem, as exclusive sales company, holds sales rights in all export territories for sales of these films. As stated at the time of the half year results for the six months ended 31 December 2012, the Board has taken action to reduce overheads. The Company continues to have limited cash resources until the time of the general meeting and expected completion of the Placing. 

KEFI Minerals (LON:KEFI)

KEFI Minerals, the gold and copper exploration company with projects in the Kingdom of Saudi Arabia, announced additional trench channel sampling and drilling results from the second drilling programme, and a significant new gold discovery at the Jibal Qutman Licence. A series of seven trenches spaced 50m apart, over 300m of strike, have been excavated . Assay results from five trenches have been received and have returned very encouraging intercepts, including 80m at 1.88g/t Au, 40m at 4.40g/t Au and 41m at 1.56g/t Au. Follow up mapping and trenching on rock chip samples (reported previously on 30th May) grading up to 17g/t Au in an area 3km north of the current area being drilled at Jibal Qutman has resulted in a new gold discovery, called the "3K Hill" prospect. Mapping and sampling elsewhere on the Jibal Qutman Licence has returned rock chip results 19.1g/t Au, 16.4g/t Au and 6.4g/t Au from an area 2km north of the 3K Hill prospect; 17.6g/t Au from an area 1.2km north of the Main Zone; and 8.1g/t Au and 8.0g/t Au from an area 600m east of the JORC Inferred Resource of 313,000 oz Au (from the Main, South and West Zones) at Jibal Qutman. Trenching over these areas is planned to continue in June 2013.

Kryso Resources (LON:KYS)

Kryso Resources, the mineral exploration and development company currently developing the Pakrut gold project in the Republic of Tajikistan, announced the details of an Independent Technical Report completed by SRK Consulting China Limited containing an upgraded JORC Code compliant mineral resource estimate and an estimate of contained ore reserves at the Pakrut Gold Project. The report also endorsed the revised capital and operational expenditure estimates, as a result of the proposed final production capacity increasing from 2,000 tonnes per day to 4,000 tonnes per day. This was outlined in the updated Bankable Feasibility Study compiled by the Beijing General Research Institute of Mining and Metallurgy. The report showed a significant increase to measured and indicated JORC Code compliant mineral resource estimates compared to previous resource estimate compiled by Snowden Mining Industry Consultants, measured resources estimate at Pakrut now 1.9 millionoz at 3.16 g/t gold at a 0.5 g/t cut-off (previously 1.76 million oz at 3.00 g/t gold at a 0.5 g/t cut-off) and indicated resources estimate now 660,000 oz at 2.05 g/t gold at a 0.5 g/t cut-off (previously 449,000 oz at 1.83 g/t gold at a 0.5 g/t cut-off). The report also showed proved ore reserves of approximately 1.55 million oz at 3.1 g/t gold at a cut-off of 1.0 g/t and probable ore reserves of approximately 222,258oz at 2.5 g/t gold at a cut-off of 1.0 g/t.

Leyshon Resources (LON:LRL)

Leyshon Resources has provided an update on its Zijinshan Gas Project, located on the eastern fringe of the prolific Ordos Gas Basin in Central China. Its wholly owned subsidiary Pacific Asia Petroleum Ltd. (PAPL) has discontinued the testing of well ZJS6, the second well drilled in the current programme, located on the southern boundary of the licence due to technical problems. The well has a total depth of 2,320 metres with 80 metres of cumulative potential pay interval intersected across fifteen potential pay zones. Several of the zones tested, which elsewhere in the field are dry, have produced water. It has not been possible to isolate or to accurately define the source of the water nor to determine whether these are issues specific to well ZJS6 or more general to this area of the licence. Accordingly the decision has been made to discontinue testing on the well for the time being and to focus exploration and appraisal efforts on the upcoming programme.

LiDCO Group (LON:LID)

LiDCO Group, the cardiovascular monitoring company, has provided a trading update at the AGM. Expectations of significant sales growth in 2013 has been matched by a strong overall performance in the year to date. Total revenue for the four months to 31 May 2013 was up 33 per cent on the same period last year and the management remains confident of meeting market expectations for the full year. The increasing support for fluid monitoring within the UK domestic market, which accounted for 68 per cent of total turnover last year, has been very encouraging and this has converted into continued sales growth in the year to date. UK market sales (excluding third party distributed sales) were significantly up year-on-year, with 59 monitor units installed in the period compared with sixteen units in the same period last year.

Metals Exploration (LON:MTL)

Metals Exploration, the natural resources exploration and development company with assets in the Pacific Rim region, announced that it has issued and allotted 189,439,766 new ordinary shares at a price of 7 pence, pursuant to a placing for cash, as previously announced on 26 March 2013, expecting shares to be admitted to trading on AIM on 18 June 2013. Following the issue of the new Shares there are 1,158,469,436 ordinary shares of 1p each in issue with each share carrying the right to one vote.

New World Oil & Gas (LON:NEW)

New World Oil and Gas, the oil and gas operating company focused on Denmark and Belize, has announced that it has secured a six-month extension in work programme commitment deadlines for Licences 1/09 and 2/09 at its Danica Jutland Project in Western Denmark. This extension was discussed with Danica Jutland ApS and the Danish North Sea Fund, the Company's 20 per cent full-paying partner, and approved by the Danish Energy Agency, and will allow the results of the recent acquisition of 3-D seismic survey and some soil geochemistry work over the Jensen prospects to be incorporated into a forward work programme on these licences. In addition to allowing New World more time to evaluate the 3D data interpretation and the prospects defined by the survey, the extra six months will provide New World with more time to continue on-going discussions with potential farm-in partners.

One Media IP Group (LON:OMIP)*

One Media, the digital media content provider which exploits intellectual property rights around music and video, announced its half year results and an interim dividend of 0.78p for the period ended 30 April 2013. Turnover increased by 32.2 per cent to £1,325,119 (2012: £1,002,302); and the profit before tax from continuing operations, excluding AIM floatation and associated costs, increased by 28.1 per cent to £262,180 (2012: £204,596.) On 18 April 2013 the Group’s shares were admitted for trading on AIM; £750,000 was raised at 8p a share. A US$2,250,000 advance against royalties was received from The Orchard, in line with the distribution agreement signed on 1 November 2012, with a further US$250,000 to be received on or by 30 June 2013. Cash balances were £1,919,668 at 30 April 2013 (2012: £792,938). The Group also announced the acquisition of two new video catalogues, including ‘The Adventures of Skippy’, ‘Alien Autopsy’ and an extension of its existing rights to a previously acquired catalogue of over 400 hours of music documentaries at a cost of US$100,000 plus an ongoing royalty. Finally, the Group announced that it has secured exclusive digital rights to a catalogue of video programs first licensed to the company in September 2011. The content will be made available and exploited exclusively by One Media digitally via YouTube. Containing over 400 hours of content, the 200+ music video-documentaries feature behind-the-scenes and ‘fan-based special feature’ looks at artists such as; David Bowie, the Rolling Stones, Marc Bolan, Limp Bizkit, Lennon & Harrison (the Guitars that Gently Weep), Thin Lizzy, Elvis, Bob Marley, The Royal Philharmonic Orchestra, Andy Williams and the late Tony Bennett. The Directors continue to believe that the Group is well positioned to meet all the demands of the digital market as it continues to evolve and influence consumer demand.

Peninsular Gold (LON:PGL)

Peninsular Gold a producing gold mining company with projects located in the vicinity of Raub, Malaysia, announced that gold production from the Raub plant was 4,757ozfor the quarter to March 31, compared with 5,697 oz in the fourth quarter of 2012. The reduction in gold produced was due to a lower average grade treated during the period, reflecting in part the shift towards an increased proportion of tailings being processed. The Raub Plant's CIL feed tonnage for the quarter was 335,000 tons, which was 13% higher than the previous quarter and 17% higher than in 3Q 2012, due to an increased throughput of tailings from the Gravel Pumping section, which improved both its tonnage per hour and total operational hours. Exploration of the northern licences areas during the first quarter of 2013 was focused on the completion of the Kekabu regional exploration and on the detailed exploration of the Chunchok area. At Kekabu ground geophysics, using a gamma ray spectrometre, not only helped to outline the contour of the mineralised felsites similar to Tersang, but also revealed the presence of other similar intrusives, confirming the presence of several mineralised bodies along the 10km Tersang-Kekabu-Tenggelan trend, while at Chunchok the Company believes that there is a significant potential for a small but high to very high grade mineralisation due to the isolated quartz veins and silicified sulphide-rich zones with gold values between 2 and 12 g/t that were previously discovered (1992) in the meta sediments.

Polymetal (LON:POLY)

Russian gold producer Polymetal International, announced that on 17 June 2013 its ordinary shares were the first among the shares of international issuers to be admitted to trading and included in the official quotation list on CJSC "MICEX Stock Exchange", a subsidiary of the Moscow Exchange. The shares will be traded under the ticker POLY in the Main Market segment (in the quotation list B), with quotation and settlement in Russian Rubles, while trading in the shares on MICEX is expected to commence on 20 June 2013.

Proteome Sciences (LON:PRM)

Proteome Sciences announced its largest contract to date, a technology agreement with Thermo Fisher Scientific, valued by the Company at US$2.1m, to develop advanced methods to profile changes in key cancer pathways. Proteome Sciences will provide access to its patents covering a three-stage mass spectrometry (MS3) fragmentation methodology to deliver significantly improved analysis and accuracy. Proteome Sciences will receive cash and Thermo Fisher will provide a no-cost lease for mass spectrometry equipment for Proteome Sciences to develop the pathway assays. In addition Proteome Sciences will continue to develop advanced 20 and 30-plex Tandem Mass Tags (TMT(R)) for Thermo Fisher for the next additions to the TMT(R) range of tags. "Our agreement with Thermo Fisher sets a new benchmark to establish and apply novel diagnostic and prognostic strategies in healthcare management," said Christopher Pearce, Chief Executive of Proteome Sciences. "It has long been our goal to provide clinicians the tools they need to provide early diagnosis of disease and better match molecular targeting medicines to the most likely responders. The output from this agreement should have a profound positive impact on the lives of large numbers of patients suffering from chronic diseases and, at the same time, provide considerable economic benefits to the health care system." 

SocialGo (LON:SGO)

SocialGo, a developer and provider of software and related services that allows customers to build their own online social presence, which announced the acquisition of Get On With It Ltd. (GOWIT) in December 2009 has agreed that the final tranche of 5.83m deferred consideration shares, due to be issued in January 2014, be issued now. GOWIT has developed the Company's SocialGo platform. The consideration for the acquisition was 35m shares of 1p each in SocialGo, with 11.7m shares issued immediately and 23.3m shares being deferred and issued in four equal tranches. Following admission of these shares to trading on AIM, the Company will have a total of 465.3m shares in issue. Two of the vendors of GOWIT, Stephen Hardman and Alex Halliday, are directors of SocialGo and as a result of this issue their interests in the Company will be 5.5 and 6 per cent respectively.

SolGold (LON:SOLG)

SolGold, a company engaged in mineral exploration of copper and gold properties in Australia and Solomon Islands, provided and exploration update on its Cascabel Project and said that the surface extent of copper and gold mineralization at the Alpala Prospect continues to grow. The receipt of additional surface channel sample assay results at Alpala Prospect has extended the area of outcropping copper gold mineralisation to more than 400 metres x 200 metres and showed copper grades increase deeper within the Alpala porphyry system. The Company also submitted the final report for the Environmental Permit (Estudio de Impacto Ambiental [EIA]) to the Ministry of Environment, the approval of which will progress the Cascabel concession from Early Stage to Advanced Stage Exploration thereby enabling drilling to occur. SolGold finalised its Alpha Prospect drill holes for Stage 1 drilling, alongside upgrading access tracks and infrastructure for drill rig mobilisation in advance of the issuance of the EIA to carry out advanced exploration. Apart from the highly prospective Alpala Prospect, there are currently four other target areas within the Cascabel tenement, which will be investigated further over the next 6 to 12 months: Quebrada Tandayama-America, Aguinaga and Quebrada Moran, which are prospective for copper-gold porphyry deposits, and Rio Cachaco which is prospective for epithermal gold style mineralisation.

Sorbic International (LON:SORB)

Sorbic International, the third largest sorbates producer in China, announced its un audited Interim Results for the six months period ended 31 March 2013. EBITDA for the period more than doubled to £0.79m (H1 2012: £0.33m) after foreign exchange gains of £0.3m (H1 2012: loss £0.1m) and a gross profit margin for the period of 10.7 per cent (H1 2012: 9.0 per cent) was recorded. Revenue for the period was £7.0m (H1 2012: £8.3m) and the Company made a net profit after tax of £0.36m (H1 2012: loss of £0.14m). The Company had a net cash balance at the end of the period of £5.341m (H1 2012: £4.039m). The Board continues to consider proposals regarding the building of a new factory in Linyi, to be funded by the Linyi authorities. 

Sprue Aegis (LON:SPRP)

Sprue has successfully tendered with The Consortium and the Yorkshire Purchasing Organisation (YPO) for the supply of home safety products to the UK Fire & Rescue Services (UK F&RS). These framework agreements replace the Firebuy agreement with the UK F&RS which lapsed in the second half of last year. The Consortium framework comprises four separate product categories and commenced on 10 June 2013 for an initial term of three years with an optional 12 month extension at the discretion of The Consortium. Sprue is the only manufacturer to be listed in all four categories. The YPO framework comprises five separate product categories and commenced on 3 April 2013 for a term of four years. Sprue is listed in all five categories. The UK F&RS continue to access Sprue's range of products under these purchasing framework agreements which include products specifically designed for the deaf and hard of hearing and for the visually impaired.

Summit Corporation (LON:SUMM)*

Summit, a drug discovery and development company advancing therapies for Duchenne Muscular Dystrophy and C. difficile infections (CDI), yesterday announced that it has achieved a clinical research milestone in the development of its novel CDI antibiotic SMT 19969 triggering a £740,000 payment under the Company’s existing Translation Award from the Wellcome Trust. The milestone was achieved after SMT 19969 successfully completed a Phase 1 clinical trial in healthy volunteers. Current development activities are focussed on preparing SMT 19969 to enter Phase 2 clinical proof of concept trials in patients with CDI. This work includes the manufacture of the final dose form of SMT 19969 and finalising the design of the patient trial with the regulators and company clinical advisors. It is anticipated that a Phase 2 clinical trial will commence in H1 2014. The development of SMT 19969 is being substantially supported by the Wellcome Trust through a Translation Award worth up to £4.0m, Originallyawarded in 2012, it will take the project through to completion of Phase 2 clinical trials. Summit also announced the appointment of Dr David Roblin as the Company’s Chief Medical Officer (CMO). During an extensive career in the pharmaceutical industry, Dr Roblin has successfully developed drugs through clinical trials and market launch across several therapy areas including infectious and metabolic diseases. Dr David Roblin has held a number of senior leadership roles at Pfizer and Bayer where he was involved in research, development and commercialisation.

The TEG Group (LON:TEG)

TEG announced that it has been awarded a new contract by Perth and Kinross Council for the treatment of co-mingled food and green waste, green waste and food waste at its In Vessel Composting (IVC) and Anaerobic Digestion (AD) plants at the Group’s Glenfarg, Perthshire facility. The co-mingled food and green waste will be processed in the IVC, the green waste will be composted at an open air windrow facility and the food waste will be processed in the AD facility. The contract will commence in June 2013 and is for a two-year term with a potential option to extend for a further two years. The volume of waste is expected to be 20-25,000 tonnes per annum and the overall revenues will be in the region of £1.8 - 2.0m over the initial period of the contract. Commenting for TEG, Chief Executive Mick Fishwick said: “The performance of the Group’s operational business has continued to be very good to date in 2013 and this contract will further underpin the sustainable revenues and profits that side of the business bring to the Group.”

Tracsis (LON:TRCS)

Tracsis provided an update on current trading and developments across the Group. The integration of Sky High is underway and progressing well. The acquisition was incorporated into the wider Group's trading as of 17 April 2013. The elimination of surplus PLC related overheads combined with other immediate synergies has enabled both cost savings and performance improvements. This has led to an enhanced operating margin for Sky High and management expectation is that the newly acquired business will make a good contribution to the Group's overall performance for the period to 31 July 2013. Condition Monitoring has performed extremely well during the current financial year, and has secured strong orders from outside of the framework agreement. The Group is currently involved in negotiations with a major customer to continue the next phase of a significant Framework Agreement for its condition monitoring technology. The timing of the prospective contract extension indicates that potential major orders for the Group are expected in late 2013 or early 2014, assuming successful renewal. A further update will be provided in due course. Tracsis has entered into a long term agreement with one of the major train operating Groups for retention of its consultancy and software services, and expects to work with most of the other bidders in varying capacities. Looking ahead, the next few years should be a period of stability in the consultancy and software offering and allow the Group to invest in a broader range of products and services. The Group is pleased to announce that revenues for the year ending 31 July 2013 are forecast to be in excess of £10m and underlying profits are in line with previous market expectations.

Versarien (LON:VRS)

Versarien, the advanced engineering materials group, announced the commencement of dealings on AIM. In conjunction with Admission, the Group raised £3.0m before expenses through a placing at 12.25 pence per share. Immediately following Admission, the Company had a market capitalisation of £10.2m at the placing price. The net proceeds of the Placing will be used to satisfy the cash consideration due in respect of the acquisition of Total Carbide Limited and to provide working capital for the Group. Versarien develops advanced micro-porous metals for thermal management. These open celled metallic foams have exceptionally high surface area to volume ratios, making them ideal for heat transfer, heat exchange, catalysis and energy storage. Versarien is initially targeting cooling systems for central processing units (CPUs), found in high performance workstations (engineering, science, CGI, animation), computer clusters, super computing infrastructure and data centres. The Group’s initial product, VersarienCu, a micro-porous copper, can improve efficiency by up to ten times when incorporated into liquid cooling systems. Upon Admission, Versarien acquired Total Carbide Limited, a manufacturer of sintered tungsten carbide components, from Elektron Technology (LON:EKT) for a total consideration of £2.28m satisfied as to £1.58m in cash and the balance in shares. The acquisition of Total Carbide will give Versarien access to manufacturing assets to expand production of VersarienCu, but also as part of Versarien’s expansion strategy as a developer and manufacturer of advanced materials. Since the Company listed, the share price has risen 8 per cent to 13.5p.

ValiRx (LON:VAL)*

ValiRx, a life science company with a focus on cancer therapeutics for personalised medicine, last week announced an update relating to the recent progress of its lead therapeutic compound and its clinical progression and development. VAL201, ValiRx's leading anti-cancer therapeutic, which is in the clinical development phase for prostate cancer among other indications, has seen continued good progress undertaking the steps required in the development of its anti-cancer drug. An expanded and adaptive clinical protocol for the first-in-man studies has been agreed with all the relevant parties. The protocol covers all stages of clinical development from before the compound's introduction to the test subject, through the evaluation of tolerability and safety into the early assessment of efficacy, and subject to review will permit the compound to move efficiently into later phase 2 efficacy studies. The protocol also opens the possibility of widening the scope of the study from the initial prostate cancer indication based on the results obtained. With this expanded vision of the trial protocol, various enhancements to the toxicology package have been undertaken and are reaching their conclusion. No significant adverse events have been reported to date and the first-in-man trial is expected to provide results by the year-end, as previously reported. In addition, the Institut Paoli-Calmettes in France has provisionally agreed to conduct further efficacy studies and undertake clinical studies on the use of VAL201 in additional oncological indications. In support of this, the clinical GMP manufacturing process has been optimised so as to provide material of suitable quality and quantity and at reasonable cost, to cover all possible trials and in compliance with all regulatory requirements throughout the whole process to potential registration.

*A corporate client of Hybridan LLP

A full archive of previous weeks’ Small Cap Wraps can now be viewed on www.hybridan.com.

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. 


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This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific entity and is not a personal recommendation to anyone. Recipients should make their own investment decisions based upon their own financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor. The information contained in this document is based on materials and sources that are believed to be reliable; however, they have not been independently verified and are not guaranteed as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, directors, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information in this document nor should it be relied upon as such. Any and all opinions expressed are current opinions as of the date appearing on this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. 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As a result both Hybridan LLP and the individual members, directors, officers  and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments. In the UK, this document is directed at and is for distribution only to persons who (i) fall within Article 19(5) (persons who have professional experience in matters relating to investments) or Article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) or (ii) are Professional Clients or Eligible Counterparties (as those terms are defined in the rules of the FSA) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as “relevant persons”). This document must not be acted on or relied up on by persons who are not relevant persons.  For the purposes of clarity, this document is not intended for and should not be relied upon by persons who would be classified as Retail Clients (as defined by the rules of the FSA). Neither this document nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of UK or US securities law, or the law of any such other jurisdictions. Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, directors, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests. Neither the whole nor any part of this document may be duplicated in any form or by any means. 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