Proactiveinvestors United Kingdom Iofina PLC https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Iofina PLC RSS feed en Mon, 17 Jun 2019 10:22:23 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[RNS press release - Result of AGM and Open Offer ]]> https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20190613120001_14110028/ Thu, 13 Jun 2019 12:00:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20190613120001_14110028/ <![CDATA[News - Iofina to move into production of CBD oil after Kentucky approves hemp licence ]]> https://www.proactiveinvestors.co.uk/companies/news/222038/iofina-to-move-into-production-of-cbd-oil-after-kentucky-approves-hemp-licence-222038.html Iodine producer Iofina PLC (LON:IOF) shares jumped on Thursday after the firm revealed plans to move into the production of cannabidiol (CBD) oils after receiving conditional approval for a licence to process hemp in Kentucky, US.

The company expects to complete the payment of fees and scheduled orientation in mid-July, allowing it to begin processing hemp.

READ: Iofina to raise up to £7.5mln to pay off debt and expedite construction of new production facility

The group has created a new subsidiary called IofinaEX that will produce CBD oils.

Iofina said it would use its speciality chemical knowledge and apply it to the extraction and isolation of purified CBD products.

The firm said the 2018 Agriculture Improvement Act, which made the cultivation of hemp legal at a federal level, has opened up new opportunities for the CBD market in the US.

“The directors are determined to explore the isolation of CBD oil and other valuable products from hemp, a market which is currently underdeveloped but rapidly growing,” said chief executive and president, Tom Becker.

He added: "The conditional approval for our handler/processor License in Kentucky is an important step forward as we plan to execute the project at IofinaEX, and we look forward to updating the market as we develop this subsidiary further."

In Kentucky, CBD – the non-psychoactive compound of a cannabis plant – is legal. However, tetrahydrocannabinol, or THC, which is the psychoactive compound that gets a user high is not.

Natural for Iofina

FinnCap said the new CBD business, IofinaEx, is seen as a "natural fit for Iofina" both operationally and geographically, with many of the same process required in cannabinoid production as in its iodine extraction and specialty chemicals businesses.

"It’s very early days, but this is a rapidly growing market with high levels of investor interest; no bad thing," the broker said.

The broker repeated a 27p price target on Iofina shares which in afternoon trading were 10.5% higher at 17.65p.

In a separate announcement published later, Iofina said that at its annual general meeting held today, all resolutions put to shareholders were duly passed.

In addition, it revealed the result of its open offer to raise up to £2.04mln, which was announced on 20 May.

The company said it received valid acceptances from qualifying shareholders in respect of 9,464,655 open offer shares, representing 74.19% of the total number of shares available, resulting in gross proceeds of approximately £1.5mln for the firm.

 -- Adds AGM, open offer results; updates share price --.

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Thu, 13 Jun 2019 08:01:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/222038/iofina-to-move-into-production-of-cbd-oil-after-kentucky-approves-hemp-licence-222038.html
<![CDATA[RNS press release - IofinaEX Application Conditionally Approved ]]> https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20190613070009_14109026/ Thu, 13 Jun 2019 07:00:09 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20190613070009_14109026/ <![CDATA[Media files - Iofina's Tom Becker discusses £7.5mln raise to fast-track development of new plant ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/13500/iofina-s-tom-becker-discusses-75mln-raise-to-fast-track-development-of-new-plant-13500.html Tue, 28 May 2019 15:47:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/13500/iofina-s-tom-becker-discusses-75mln-raise-to-fast-track-development-of-new-plant-13500.html <![CDATA[News - Iofina to raise up to £7.5mln to pay off debt and expedite construction of new production facility ]]> https://www.proactiveinvestors.co.uk/companies/news/220584/iofina-to-raise-up-to-75mln-to-pay-off-debt-and-expedite-construction-of-new-production-facility-220584.html Iodine producer Iofina PLC (LON:IOF) is to pull the trigger on the fundraising it has been considering.

The company plans to raise up to £7.5mln through the issue of shares at 16p each. Iofina shares closed at 18.52p on Friday.

WATCH: Iofina's Tom Becker discusses £7.5mln raise to fast-track development of new plant

The funds from the issue will eliminate the firm’s US$3.26mln loan facility and will provide capital to accelerate the development and construction of the IO#8 iodine processing plant.

Iofina said one of its secured lenders, Southern Rock Insurance, has agreed to convert three-quarters of the total debt owed to it through a loan note issue into Iofina shares.

The company owes Southern Rock roughly US$5.59mln, of which about US$4.19mln will be wiped out through the issue of shares at an assumed price of 16p each.

Iofina’s existing shareholders will also be given the option to buy shares at 16p a pop through an open offer. The company is looking to raise £2.04mln - as part of the total £7.5mln it plans to raise - via the open offer, with shareholders being given the option to apply for additional shares in excess of their standard entitlement.

"Given complex market conditions, we believe that it is in the best interests of shareholders as a whole to conclude this oversubscribed placing,” said Dr Tom Becker, the president and chief executive officer of Iofina.

"The strengthening iodine prices and demand makes it an opportunistic time to execute on our expansion plans. We have identified areas for growth and will utilise the new funds to fast-track investment in new plants, as well as to upgrade existing plants, which will increase iodine production and further enhance cost control measures,” Becker said.

Shares in Iofina were trading at 18.1p, down 2.3%, in early deals.

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Mon, 20 May 2019 08:53:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/220584/iofina-to-raise-up-to-75mln-to-pay-off-debt-and-expedite-construction-of-new-production-facility-220584.html
<![CDATA[RNS press release - Proposed Placing and Open Offer ]]> https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20190520070018_14079317/ Mon, 20 May 2019 07:00:18 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20190520070018_14079317/ <![CDATA[News - Iofina mulls fundraising after recent share price surge ]]> https://www.proactiveinvestors.co.uk/companies/news/220182/iofina-mulls-fundraising-after-recent-share-price-surge-220182.html Iodine producer Iofina PLC (LON:IOF) is planning to tap the market for at least £5mln.

The funds raised will enable the company to pay off some of its debt and provide the cash to finance the construction of its IO#8 extraction plant.

READ Iofina’s newest plant helps it to achieve record first quarter

The proposed fundraising comes at a propitious time for Iofina, given its share price has virtually doubled to 32p this month.

The company said it knew of no reason for the share price rise but pointed to its recently reported positive results and the improving iodine market.

#IOF #Iofina highlights record production and earnings for 2018 as #Iodine prices strengthenhttps://t.co/Mna6e3B9Wi

— Andrew Scott (@AndrewScottTV) May 1, 2019

The company said that due to the recent steep share price rise, the proposed fundraising would likely be done at a discount to the current share price and added that shareholders would be able to get their hands on some of the newly issued shares via an open offer.

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Tue, 14 May 2019 07:25:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/220182/iofina-mulls-fundraising-after-recent-share-price-surge-220182.html
<![CDATA[RNS press release - Statement regarding share price rise ]]> https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20190514070006_14072416/ Tue, 14 May 2019 07:00:06 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20190514070006_14072416/ <![CDATA[Media files - Iofina highlights record production and earnings for 2018 as Iodine prices strengthen ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/13175/iofina-highlights-record-production-and-earnings-for-2018-as-iodine-prices-strengthen-13175.html Wed, 01 May 2019 14:57:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/13175/iofina-highlights-record-production-and-earnings-for-2018-as-iodine-prices-strengthen-13175.html <![CDATA[News - Iodine producer Iofina delivers record full year ]]> https://www.proactiveinvestors.co.uk/companies/news/219448/iodine-producer-iofina-delivers-record-full-year-219448.html Iofina PLC (LON:IOF) delivered a “record year” in 2018 on the back of increased iodine production at its IOsorb plants in Oklahoma.

The iodine and chemicals manufacturer reported record earnings (EBITDA) for the year ended 31 December 2018 of US$2.6mln, 89% higher than the prior year, while revenues climbed 15% to US$24mln.

WATCH: Iofina highlights record production and earnings for 2018as iodine prices strength

Pre-tax losses, meanwhile, had narrowed by 85% to US$1.4mln. The group also ended the year with a cash balance of US$4.5mln, up 32% year-on-year.

The company said it had produced its highest ever amount of crystalline iodine, which rang in at 588.8 metric tonnes (MT) compared to 503 MT in 2017.

Iofina had continued to break records in its current year, reporting its best ever first quarter iodine production of 134.4 MT in mid-April.

Plans for an eighth production site were also under way, with construction expected to begin later this year.

Dr Tom Becker, Iofina’s president and chief executive, added that prices in the iodine market had continued to “move in a positive direction”, with more growth expected throughout the rest of the year.

“Over the last few years, by executing cost savings plans, prudent growth, and investing in new products, the group has turned itself around and is performing at its highest level to date.”

Iodine, which Iofina extracts from brine produced by onshore oil wells, is an element that has a wide range of uses including as a disinfectant and as a dye pigment.

“More of the same please”, says broker

In a note to clients, analysts at Iofina’s ‘house’ broker finnCap said the company’s “laser focus” on costs and efficiency improvements “should continue to pay dividends”, with the projected increase in iodine prices likely to amplify the benefits.

The broker added that Iofina’s recently established cannabinoid division, IofinaEX, was “a natural fit” as its current iodine production used many of the same processes required to extract the cannabis-derived chemicals.

“Iofina also has operations in Montana, Colorado and Kentucky, the top three regions for hemp production in the US. Diversification into synergistic, high-growth new areas can be no bad thing as long as it doesn’t distract from the progress being made in its core Resource and Chemical divisions”.

finnCap has Iofina pegged with a 34p target price.

In afternoon trading, shares were down 2.1% to 16.15p on Wednesday.

--Updates for video link and share price--

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Wed, 01 May 2019 08:18:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/219448/iodine-producer-iofina-delivers-record-full-year-219448.html
<![CDATA[RNS press release - Final Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20190501070008_14058418/ Wed, 01 May 2019 07:00:08 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20190501070008_14058418/ <![CDATA[Media files - Iofina PLC makes strong start to 2019 with best ever first quarter of production ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/13038/iofina-plc-makes-strong-start-to-2019-with-best-ever-first-quarter-of-production-13038.html Wed, 17 Apr 2019 15:14:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/13038/iofina-plc-makes-strong-start-to-2019-with-best-ever-first-quarter-of-production-13038.html <![CDATA[News - Iofina’s newest plant helps it to achieve record first quarter ]]> https://www.proactiveinvestors.co.uk/companies/news/218740/iofinas-newest-plant-helps-it-to-achieve-record-first-quarter-218740.html A full quarter of production from its newest plant helped Iodine producer Iofina PLC (LON:IOF) to a record start to the year.

The company, which extracts iodine from brine produced by onshore oil wells, produced 134.4 metric tonnes (MT) in the opening three months of 2019, up 14% year-on-year (Q1 18: 118.2MT).

That is the most amount of iodine Iofina has ever produced in the first quarter.

READ: Iofina restructures its debt

The AIM company said a full contribution from IO#7, which was commissioned this time last year, was a “significant factor” behind the record output.

On top of the solid operational performance, Iofina made the “important achievement” of restructuring its debt with its long-time backers.

The maturity date for the debt has been pushed back by another year to July 2020 and the convertibility feature – which gave the lenders the right to convert their loans into equity – was removed.

The global iodine market remains “robust”, Iofina added, with iodine prices at US$28/kg, some 16% higher than the spot price of US$24/kg in the first quarter of 2018.

‘Well-placed for a strong 2019’

“I am pleased with the group's solid start to the year, which has seen us successfully renegotiate the debt terms of our loan,” said chief executive Tom Becker.

“The completion of the debt restructuring is an important achievement as it provides the group with flexibility to execute on its long-term business strategy.

“It is also pleasing to report that we have achieved a 14% year-on-year increase in iodine production from our four operating IOsorb plants.”

He added: “The increase in production, coupled with the continued rise in iodine prices, has positioned Iofina well for a strong 2019.”

H1 forecasts trimmed

Iofina’s first-quarter performance could have been even better had the extreme winter weather in Oklahoma, where its plants are located, not affected production efficiencies.

Work is currently ongoing at plant IO#6 to restore expected efficiencies, while works planned for IO#4, which will enhance iodine output, have been pushed back slightly.

Iofina had previously expected to produce between 310-330MT of iodine in the first half of this year, although given the hiccups with plants IO#4 and IO#6, it now expects production of around 280-300MT.

“Whilst we are behind our aggressive production target for H1 2019, we are confident that production output will resume to normal levels once the appropriate works are completed and look forward to higher production levels in Q2 2019 with warmer weather and lower down time,” said Becker.

In a note to clients, analysts at ‘house’ broker finnCap commented: “While we are cutting our FY19 volume estimates our EBITDA and earnings forecasts rise slightly, demonstrating Iofina’s operational leverage and sensitivity to iodine prices.

“Moreover, the recently completed debt restructuring paves the way for Iofina to pursue additional expansion opportunities, with the strong performance of its new IO#7 unit raising confidence in the expected benefits of this expansion.”

finnCap repeated a 34p target price on Iofina’s shares, which in late morning trading were 3.9% lower at 14.35p.

 -- Adds analyst comment, share price --

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Wed, 17 Apr 2019 07:40:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/218740/iofinas-newest-plant-helps-it-to-achieve-record-first-quarter-218740.html
<![CDATA[RNS press release - Q1 2019 Market Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20190417070003_14043812/ Wed, 17 Apr 2019 07:00:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20190417070003_14043812/ <![CDATA[RNS press release - Completion of Debt Restructuring ]]> https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20190401070007_14022486/ Mon, 01 Apr 2019 07:00:07 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20190401070007_14022486/ <![CDATA[News - Iofina expects further progress in 2019 after record year as it moves into cannabis market ]]> https://www.proactiveinvestors.co.uk/companies/news/216673/iofina-expects-further-progress-in-2019-after-record-year-as-it-moves-into-cannabis-market-216673.html Record results in 2018  Further progress expected in 2019 Iofina plans move into US cannabis market    What Iofina does:

Iofina PLC (LON:IOF) is involved in the exploration and production of iodine, iodine speciality chemical derivatives, produced water and natural gas.

The AIM-listed group‘s strategy is to identify, develop, build, own and operate iodine extraction plants currently focused in North America based on its wellhead extraction technology, IOsorb.

It has production operations in the United States, specifically in Kentucky, Montana, and Oklahoma.

The company has complete vertical integration from the production of iodine in the field to the manufacture of the chemical end products derived from iodine to the consumer, and the recycling of iodine using iodinated side-streams from waste chemical processes.

Recently, the group announced move into the production of cannabidiol (CBD) oils in the US. The firm has created a new subsidiary called IofinaEX that will produce CBD oils.

Inflexion points: Iofina delivered a record year in 2018 on the back of increased production at its IOsorb plants in Oklahoma. It reported earnings (EBITDA) of US$2.6mln, 89% higher than the prior year, while revenues climbed 15% to US$24mln. Plans for an eighth iodine production site are under way, with construction expected to begin later this year. Iofina has received conditional approval for a licence to process hemp in Kentucky, which will pave the way for to begin producing CBD oils. The company plans to raise up to £7.5mln through the issue of shares at 16p each. It has also raised gross proceeds through an open offer with existing shareholders. The funds will be used to help pay down debt and progress the development and construction of the IO#8 iodine processing plant.

What the boss says - Dr Tom Becker, chief executive officer

''2018 was an exceptional year and a result of the strategies executed over the last few years by the directors and employees of Iofina," Becker said.

He added: "Over the last few years, by executing cost savings plans, prudent growth, and investing in new products, the group has turned itself around and is performing at its highest level to date.

"This momentum has continued into early 2019 with record Q1 iodine production."

Becker said Iofina intends to continue with this progress. The group is looking to expand its iodine production in 2019 and will continue to invest in new, innovative products, he said. 

"The iodine market is continuing to move in a positive direction, although iodine prices are still below pre-2011 levels. 

"Our focus on everyday execution, coupled with the development and implementation of near-term and long-term growth strategies, are vital to continue with the exceptional progress of the group moving forward."

Blue Sky:

Commenting on Iofina's 2018 results, analysts at ‘house’ broker finnCap said the company’s “laser focus” on costs and efficiency improvements “should continue to pay dividends”, with the projected increase in iodine prices likely to amplify the benefits.

The broker added that Iofina’s recently established cannabinoid division, IofinaEX, was “a natural fit” as its current iodine production used many of the same processes required to extract the cannabis-derived chemicals.

“Iofina also has operations in Montana, Colorado and Kentucky, the top three regions for hemp production in the US. Diversification into synergistic, high-growth new areas can be no bad thing as long as it doesn’t distract from the progress being made in its core Resource and Chemical divisions”.

finnCap has Iofina pegged with a 34p target price.

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Mon, 18 Mar 2019 15:43:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/216673/iofina-expects-further-progress-in-2019-after-record-year-as-it-moves-into-cannabis-market-216673.html
<![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20190222164041_13979350/ Fri, 22 Feb 2019 16:40:41 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20190222164041_13979350/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20190222163539_13979340/ Fri, 22 Feb 2019 16:35:39 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20190222163539_13979340/ <![CDATA[News - Iofina restructures its debt ]]> https://www.proactiveinvestors.co.uk/companies/news/214424/iofina-restructures-its-debt-214424.html Iofina PLC (LON:IOF), the iodine extraction technology specialist, is to restructure its issued convertible loan notes and has also agreed to restructure the term loan facility provided by Stena Investment.

With the agreement of its convertible loan note holders, Iofina has extended the repayment term of the loan by 13 months to 1 July 2020.

READ: Iofina continues in record-busting form

The convertible element of the notes has been removed and the coupon has been increased from 5% to 7.5%, with the new rate kicking in as from 1 January of this year.

As for the term loan, this has also been extended to 1 July 2020, with the interest rate adjusted to 7.5% from the beginning of this year, rising to 12% on 1 June of this year.

Iofina said debt as at the end of 2018, comprised roughly U$22.37mln of loan notes and US$3.26mln owed to Stena Investment.

Positive for shareholders

Dr Tom Becker, the president and chief executive officer of Iofina said: ''Extending the terms of the notes and facility to 1 July 2020 will allow us to continue upgrading and expanding our plants, which in turn will further boost the level of Iodine production. At the same time, the removal of the debt convertibility is a huge positive for our shareholders. With iodine prices continuing to rise we are well positioned to continue the momentum built over the last few years."

In a note to clients, analysts at ‘house’ broker finnCap commented: “Iofina will incur a higher interest rate as a result and can no longer capitalise interest payments, although this still looks the best outcome that could have been expected and removes a major issue that has been weighing on the shares. In our forecasts we have delayed the assumed IOsorb plant expansions by 6-9 months, which reduces our EBITDA forecasts by 11-12%.”

They added: “This sees our DCF-based price target fall 3% to 34p. Nevertheless, Iofina still offers material upside and strong leverage to improving iodine prices and its continued operational recovery.”

In afternoon trading, shares in Iofina were 1.3% lower at 17.50p.

 -- Adds analyst comment, share price --

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Tue, 12 Feb 2019 07:46:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/214424/iofina-restructures-its-debt-214424.html
<![CDATA[RNS press release - Debt Restructuring ]]> https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20190212070006_13965640/ Tue, 12 Feb 2019 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20190212070006_13965640/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20190201164047_13956079/ Fri, 01 Feb 2019 16:40:47 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20190201164047_13956079/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20190201163533_13956072/ Fri, 01 Feb 2019 16:35:33 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20190201163533_13956072/ <![CDATA[RNS press release - Change of Registered Office ]]> https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20190122070006_13941982/ Tue, 22 Jan 2019 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20190122070006_13941982/ <![CDATA[Media files - Iofina Plc sets record-breaking year in 2018 ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/11879/iofina-plc-sets-record-breaking-year-in-2018-11879.html Thu, 17 Jan 2019 14:52:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/11879/iofina-plc-sets-record-breaking-year-in-2018-11879.html <![CDATA[News - Iofina continues in record-busting form ]]> https://www.proactiveinvestors.co.uk/companies/news/212756/iofina-continues-in-record-busting-form-212756.html Iofina plc (LON:IOF) had a strong second half to what was a record-breaking year in 2018 in terms of crystalline iodine production.

The group produced 324.7 tonnes of crystalline iodine in the second half of last year, up 21% from 267.5 tonnes in the corresponding period of 2017.

READ: Iofina enjoys record quarterly production as it reiterates full-year guidance

That took the full-year production level up to 588.8 tonnes, up 17% on 2017’s 503 tonnes.

Both the half-year and full-year output numbers represent records for the group, despite operating only four iodine production plants in the period.

The company said the success of the new IO#7 facility, which opened in February 2018, was largely responsible for the record-busting performance.

The company intends to replicate the success of IO#7 at new sites and the sourcing of suitable locations for further plants will continue to be a priority in 2019.

The group has decided not to reopen the IO#5 facility at the current site but as it has done successfully in the past, it will cannibalise the parts for use in future production locations.

Iofina expects to produce between 310-330 tonnes of crystalline iodine in the first half of the year, and as usual, the production will likely be weighted to the second quarter.

Continuing the trend from early 2017, iodine prices continue to rise, Iofina noted. Iodine prices started 2018 near US$24/kg and now in early 2019, large volume sales are generally in the range of US$26-27/kg.

Iofina expects iodine prices to increase further in 2019 as global demand continues to increase in both current and emerging applications. As a low-cost iodine producer and iodine derivative manufacturer, Iofina stands to benefit from any increases in iodine prices, it said.

''I am delighted with the group's improved performance in 2018, in which we produced a record amount of iodine and successfully increased output whilst reducing the overall cost of production. Meanwhile, the restructuring of debt remains a priority for us and we are making good progress towards its conclusion,” revealed Dr Tom Becker, the president and chief executive officer of Iofina.

"We enter the new year in a strong position, seeing strong growth across the group. We are confident that this momentum can be maintained and that 2019 profitability will continue to improve in line with the iodine price," he added.

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Thu, 17 Jan 2019 08:02:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/212756/iofina-continues-in-record-busting-form-212756.html
<![CDATA[RNS press release - Market Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20190117070003_13937290/ Thu, 17 Jan 2019 07:00:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20190117070003_13937290/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20181120164043_13874102/ Tue, 20 Nov 2018 16:40:43 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20181120164043_13874102/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20181120163539_13874093/ Tue, 20 Nov 2018 16:35:39 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20181120163539_13874093/ <![CDATA[RNS press release - Director Appointment ]]> https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20181116070004_13869343/ Fri, 16 Nov 2018 07:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20181116070004_13869343/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20181018164032_13834530/ Thu, 18 Oct 2018 16:40:32 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20181018164032_13834530/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20181018163514_13834520/ Thu, 18 Oct 2018 16:35:14 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20181018163514_13834520/ <![CDATA[News - Iofina enjoys record quarterly production as it reiterates full-year guidance ]]> https://www.proactiveinvestors.co.uk/companies/news/206744/iofina-enjoys-record-quarterly-production-as-it-reiterates-full-year-guidance-206744.html Another big contribution from its new IO#7 plant helped Iofina plc (LON:IOF) to a record quarter of iodine production over the past three months.

In the period to the end of September, the AIM company produced 172.3 tonnes of crystalline iodine from its four operating IOsorb plants in Oklahoma (Q3 17: 125 tonnes), the largest quarterly total in its history.

READ: Better times ahead for Iofina

Iofina said the record production reflected a “full quarter of strong performance” at the new IO#7 plant, as well as “continued consistent operation” of its more mature IOsorb plants.

So far this year, the company has produced a total of 436.4 tonnes of iodine, leaving it on track to “significantly surpass” 2017’s total of 503 tonnes.

Bosses are also confident Iofina will hit its full-year target of producing between 575-605 tonnes of iodine.

Profitability on the up

“The execution of the company's growth strategy, in particular, the advantageous location of IO#7, and the performance of the operations team continues to pay off for the company,” said chief executive Tom Becker.

“We expect the positive momentum we are currently achieving to significantly increase the group's revenues and profits versus the first half of this year.”

Becker added: “Debt restructure and growth in 2019 remain the top priority for myself and the management team as we move towards the end of 2018.”

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Wed, 10 Oct 2018 07:35:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/206744/iofina-enjoys-record-quarterly-production-as-it-reiterates-full-year-guidance-206744.html
<![CDATA[RNS press release - Q3 2018 Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20181010070004_13822522/ Wed, 10 Oct 2018 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20181010070004_13822522/ <![CDATA[Media files - Iofina reports 20% increase in revenue as IOsorb plant IO#7 comes online ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/10558/iofina-reports-20-increase-in-revenue-as-iosorb-plant-io7-comes-online-10558.html Fri, 21 Sep 2018 11:42:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/10558/iofina-reports-20-increase-in-revenue-as-iosorb-plant-io7-comes-online-10558.html <![CDATA[News - Iofina's performance continues to improve ]]> https://www.proactiveinvestors.co.uk/companies/news/205311/iofina-s-performance-continues-to-improve-205311.html Iofina PLC (LON:IOF) found the market hard to please on Thursday with a set of interims that revealed an increase in revenue and underlying earnings.

The shares, which have been on a good run this month, fell 0.85p to 13.85p despite the iodine producer revealing a 20% increase in revenue in the first half of 2018 to US$11.3mln from US$9.4mln the year before.

WATCH: Iofina reports 20% increase in revenue as IOsorb plant IO#7 comes online

The period saw 264.1 tonnes of crystalline iodine produced, which was up 12% from 235.5 tonnes in the previous year while the top-line also benefited from improving iodine prices increased sales of crystallised iodine via the Group's chemicals business.

Underlying earnings (EBITDA) improved by 6% to US$724,847 from US$683,378 the previous year while the loss before tax was whittled down to US$750,429 from US$2.03mln in the first half of 2017.

At the end of the reporting period, cash balances had ebbed to US$3.0mln from US$3.3mln a year earlier.

The production rate of crystalline iodine in the third quarter of 2018 has thus far exceeded the preceding quarter’s output and the Iofina Resources division is on track to achieve the expected full-year production target of 575-605 tonnes of crystalline iodine in 2018.

The company is evaluating options for the IO#5 IOsorb plant and is determining whether to source an alternative brine supply or move IO#5 to another site. Final determinations should be complete by the end of 2018, the company said.

House broker finnCap said its expectation for the timing of the next new-build IOsorb plant has shifted “slightly to the right”, resulting in small adjustments to its forecasts.

Dr Tom Becker, the president and chief executive officer of Iofina, was more inclined to focus on the successful construction of IO#7 in the first half of the year, which he described as “a major milestone for the group”.

“We are pleased with the performance of the new IOsorb plant, which is the group's lowest production cost plant, and we anticipate a strong second half of the year because of this.

"In addition to the group's increased iodine production, expansion at the group's chemical business is also extremely encouraging. We have increased production capacity of three of our key iodine compounds as well as increasing production of a key non-iodine based product in response to rapidly increasing customer demand,” Dr Becker revealed.

READ: Better times ahead for Iofina as iodine prices recover

The group needs to repay its US$20mln debt facility, which was restructured in September 2016, by June 1 of next year together with the US$3mln drawn under the term loan facility, and Dr Becker said the board is working hard to achieve a solution for this.

“Whilst addressing the debt repayment requirements, the board remains committed to executing its growth strategy; to increase production of iodine and sales, whilst remaining a low-cost iodine producer,” Dr Becker said.

Broker finnCap said the results demonstrated encouraging progress in the operational turnaround of the group, Iofina’s interim results demonstrate encouraging progress towards its operational turnaround, with higher volumes, lower unit costs and better pricing all contributing to an improved bottom line.

“Moreover, the pace should accelerate in H2 now that the new IO#7 plant has ramped up,” the broker said.

“Years of cost-cutting and plant optimisation leave Iofina at the bottom of the cost curve and highly leveraged to the improving pricing environment. The restructuring of its debt is ongoing, but once concluded paves the way for Iofina to pursue additional growth plans – the performance of its IO#7 unit should give investors confidence in management’s ability to execute on its growth strategy,” it added.

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Thu, 20 Sep 2018 09:06:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/205311/iofina-s-performance-continues-to-improve-205311.html
<![CDATA[RNS press release - Interim Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20180920070008_13797510/ Thu, 20 Sep 2018 07:00:08 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20180920070008_13797510/ <![CDATA[News - Iofina confirms expected sharp increase in output in 2018 ]]> https://www.proactiveinvestors.co.uk/companies/news/200821/iofina-confirms-expected-sharp-increase-in-output-in-2018-200821.html Iodine producer Iofina plc (LON:IOF) expects to produce between 575 and 605 tonnes of crystalline iodine in 2018, in line with the market’s expectations.

Last year, the company produced 503 tonnes, and the expected sharp increase this year is largely due to the IO#7 Iosorb plant coming online; the new plant supplanted IO#3 and is producing at a much faster rate.

READ: Iofina expecting increase in production as IO#7 plant scales-up operations

Iofina said the projected output level does not include any contribution from the IO#5.

Iofina said it estimates it produced between 260 and 265 tonnes of its Ioflo crystalline iodine in the first half of 2018 and expects to churn out 315-340 tonnes in the second half.

The company also noted spot prices for iodine continue to strengthen and are currently at or above US$25 a kilogram.

''Our IOsorb plants are performing well and we are pleased that our expected production of near 600MT of crystalline iodine in 2018 is in line with analyst predictions in the market,” said Dr Tom Becker, the president and chief executive officer of Iofina.

“The production from IO#7 has resulted in a lowering of our total per unit iodine production costs and this coupled with higher iodine prices and an increase in year-on-year production are all positive for Iofina's profitability,” he added.

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Mon, 16 Jul 2018 07:45:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/200821/iofina-confirms-expected-sharp-increase-in-output-in-2018-200821.html
<![CDATA[RNS press release - H1 2018 Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20180716070003_13718123/ Mon, 16 Jul 2018 07:00:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20180716070003_13718123/ <![CDATA[News - Iofina's house broker leaves forecasts unchanged after China dumping decision ]]> https://www.proactiveinvestors.co.uk/companies/news/199004/iofina-s-house-broker-leaves-forecasts-unchanged-after-china-dumping-decision-199004.html Iofina plc (LON:IOF) has reiterated its 2018 production guidance but advised profits would take a small hit as China gets tough on hydriodic acid imports.

Iofina revealed that a preliminary determination from China's Ministry of Commerce (MOFCOM) regarding an Iofina Chemical product, namely hydriodic acid (HI), concluded that Iofina Chemical and the other HI manufacturers from the USA and Japan, had been selling HI in China at below market value.

READ: Iofina expecting increase in production as IO#7 plant scales-up operations

Preliminary dumping duties of 118.8% and 41.1% have been imposed with immediate effect against USA and Japanese importers respectively. Iofina believes this preliminary determination and the tariff imposed is incorrect and will investigate all means to reverse this decision before the final determination in the autumn of this year.

Given the recent deterioration of the USA-China trade relationship, the conclusion on the matter is unclear, Iofina said. Its best guess at the moment is that there will be a small negative effect on profitability of slightly more than US$100,000 from the board's current expectations in 2018.

“The preliminary determination in the hydriodic acid anti-dumping inquiry in China is extremely disappointing. We continue to refute these claims and will investigate and pursue all options to remedy the situation," said Dr Tom Becker, the president and chief executive officer of Iofina.

On the plus side, Iofina expects to produce 260-265 tonnes of its IOflo crystalline iodine in the first half of 2018 and 315-340 tonnes in the second half of the year; in the whole of 2017 the company produced 503 tonnes of crystalline iodine so this represents a big increase and assumes no contribution from IO#5, where management is pondering options to optimise production from this plant.

Furthermore, spot prices continue to strengthen for iodine and are trading on or above the US$25/kg level for large volume purchases.

''Our IOsorb plants are performing well and we are pleased that our expected production of near 600MT [metric tons] of crystalline iodine in 2018 is in line with analyst predictions in the market. The production from IO#7 has resulted in a lowering of our total per unit iodine production costs and this coupled with higher iodine prices and an increase in year-on-year production are all positive for Iofina's profitability,” Dr Becker said.

House broker not overly concerned by Chinese issue​

House broker finnCap said the effect of the Chinese ruling will be small, accounting for less than 3% of projected underlying earnings, and that it saw no need to alter its forecasts.

“More important drivers for 2018 earnings will be the iodine, which continues to improve, further production increases from IO#7 and whether IO#5 returns to production,” the broker said.

Shares were down 3.7% at 15.5p in mid-morning trading.

--- adds broker comment and share price ---

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Mon, 18 Jun 2018 07:49:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/199004/iofina-s-house-broker-leaves-forecasts-unchanged-after-china-dumping-decision-199004.html
<![CDATA[RNS press release - Market update ]]> https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20180618070005_13682648/ Mon, 18 Jun 2018 07:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20180618070005_13682648/ <![CDATA[RNS press release - Grant of Options ]]> https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20180614070004_13679018/ Thu, 14 Jun 2018 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20180614070004_13679018/ <![CDATA[RNS press release - Result of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20180613113002_13678196/ Wed, 13 Jun 2018 11:30:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20180613113002_13678196/ <![CDATA[Media files - 'Things are adding up for Iofina' with increased year-on-year production ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/9167/-things-are-adding-up-for-iofina-with-increased-year-on-year-production-9167.html Mon, 30 Apr 2018 11:27:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/9167/-things-are-adding-up-for-iofina-with-increased-year-on-year-production-9167.html <![CDATA[News - Iofina expecting increase in production as IO#7 plant scales-up operations ]]> https://www.proactiveinvestors.co.uk/companies/news/196017/iofina-expecting-increase-in-production-as-io7-plant-scales-up-operations-196017.html Iodine extraction specialist Iofina plc (LON:IOF) overcame terrible winter conditions to keep output roughly stable, year-on-year, in the first quarter.

The company said it produced 118.2 tonnes of crystalline iodine from its operating Oklahoma-based IOsorb plants in the first three months of the year, down just a tad from 118.7 tonnes in the same period of 2017.

WATCH: 'Things are adding up for Iofina' with increased year-on-year production

Two of its plants (IO#3 and IO#5) were offline at the start of the quarter, while IO#07 only came online part-way through the quarter.

Operations in January and February were affected by extreme winter weather in Oklahoma and a greater diversion of brine flow, including at IO#5, than had been anticipated.

The iodine production run-rate for the group in March was significantly higher than in the first two months of the year, Iofina said, as the IO#7 plant scaled-up operations.

The ramp-up at IO#7 has occurred broadly as expected as Iofina and its brine supply partner continue to work together to maximize brine input and iodine output. As IO#7 optimises its production, the company expects overall total iodine production rates in the current quarter to increase.

Demand for and sales of iodine and iodine-based derivatives through Iofina Chemical were as anticipated for the reporting period.

Iofina Chemical added additional chemical reactor capacity for iodide products during the period to meet demands. Prices of iodine and iodine-based compounds rose slightly in the period continuing their upward trend from 2017.

''Despite the effects of the weather and brine supply, 2018 iodine production is off to a solid start with the opening of IO#7 midway through the quarter, which is expected to increase output and reduce iodine production costs in Q2 2018. Importantly, commencement of production at IO#7 started on time and management expects output from the plant to increase during the year as it moves to full optimisation. Management continues to review the strategy for IO#5 in order to optimise production from this plant,” said Dr Tom Becker, the president and chief executive officer of Iofina.

"The trend of iodine prices continues to move upward and is an additional benefit for Iofina as it moves forward and executes its growth strategy to increase iodine output whilst lowering production costs," he added.

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Mon, 30 Apr 2018 07:33:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/196017/iofina-expecting-increase-in-production-as-io7-plant-scales-up-operations-196017.html
<![CDATA[RNS press release - Final Results and Notice of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20180430070008_13622746/ Mon, 30 Apr 2018 07:00:08 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20180430070008_13622746/ <![CDATA[News - Better times ahead for Iofina as iodine prices recover ]]> https://www.proactiveinvestors.co.uk/companies/news/195985/better-times-ahead-for-iofina-as-iodine-prices-recover-195985.html Iofina plc (LON:IOF) is seeing light at the end of the tunnel after one of the worst slumps in the iodine sector for fifty years, says broker finncap.

The iodine extraction group has had to cope with a price that fell below US$20/kg in the first half of 2017, but has improved since to around US$25/kg and sometimes more.

WATCH: Iofina maintains production despite tough winter and fewer plants

Finncap expects the recovery to continue given steady demand growth and competitor capacity expansion problems in Chile with the result prices might reach US$30/kg in 2020.

The broker adds that management has performed an excellent job in the face of the 'brutal' industry downturn by cutting costs, improving efficiencies and honing its iodine extraction technology.

Now that market conditions are picking up, Iofina is one of the lowest cost producers globally and with better prices can generate strong profit and free cash flow going forward.

Operational improvement

Some of Iofina’s installed IOsorb iodine plants struggled historically with erratic brine volumes and low iodine concentrations. To remedy this, management has sought to improve water access and relocate underperforming plants; management is still pondering what to do with the IO#05 plant, which is currently offline, but has been heartened by the success of IO#07, the plant that cannibalised parts of IO#03 in a new location.

Iofina expects to produce 260-265 tonnes of its IOflo crystalline iodine in the first half of 2018 and 315-340 tonnes in the second half of the year; in the whole of 2017 the company produced 503 tonnes of crystalline iodine so this represents a big increase and assumes no contribution from IO#5.

''Our IOsorb plants are performing well and we are pleased that our expected production of near 600MT [metric tons] of crystalline iodine in 2018 is in line with analyst predictions in the market. The production from IO#7 has resulted in a lowering of our total per unit iodine production costs and this coupled with higher iodine prices and an increase in year-on-year production are all positive for Iofina's profitability,” said Dr Tom Becker, the chief executive officer and president of Iofina.

China is the fly in the ointment

In June 2018, Iofina revealed that a preliminary determination from China's Ministry of Commerce (MOFCOM) regarding an Iofina Chemical product, namely hydriodic acid (HI), concluded that Iofina Chemical and the other HI manufacturers from the USA and Japan, had been selling HI in China at below market value.

Preliminary dumping duties of 118.8% and 41.1% have been imposed with immediate effect against USA and Japanese importers respectively. Iofina believes this preliminary determination and the tariff imposed is incorrect and will investigate all means to reverse this decision before the final determination in the autumn of this year.

Given the recent deterioration of the USA-China trade relationship, the conclusion on the matter is unclear, Iofina said. Its best guess at the moment is that there will be a small negative effect on profitability of slightly more than US$100,000 from the board's current expectations in 2018.

FinnCap did not seem overly fussed by the tariff as the expected profit hit is less than 3% of projected underlying earnings and it left its 2018 forecasts unchanged.

“More important drivers for 2018 earnings will be the iodine, which continues to improve, further production increases from IO#7 and whether IO#5 returns to production,” the broker said.

Growth at last

Finncap estimates that with its actions already Iofina has halved unit production costs and if you add in a growth factor, the numbers become compelling.

Each new WET IOsorb plant will be able to generate after-tax cash flow of US$1.2-1.8mln at US$25-30kg and return its investment in less than two years.

A cash flow model - assuming one new IOsorb plant is added each year between 2019 and 2021 - gives a price target of 35p/share and an enterprise multiple of under eight in 2021.

By-product boosted

The company’s proprietary IOsorb processing plants take wastewater and brine, a largely unwanted by-product of most onshore oil fields, as a feedstock and from them makes iodine - a commodity used in animal feeds, chemical manufacturing, chemistry and in medicine.

Iofina’s five plants in Oklahoma take wastewater from just one-quarter of the producing oil fields that are still in operation, hence why the well doesn’t run dry very often and, when it does, it doesn’t last for too long.

At 15.5p, Iofina is valued at £19.3mln.

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Fri, 27 Apr 2018 13:25:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/195985/better-times-ahead-for-iofina-as-iodine-prices-recover-195985.html
<![CDATA[Media files - Iofina maintains production despite tough winter and fewer plants ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/9094/iofina-maintains-production-despite-tough-winter-and-fewer-plants-9094.html Wed, 18 Apr 2018 16:19:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/9094/iofina-maintains-production-despite-tough-winter-and-fewer-plants-9094.html <![CDATA[News - Iofina maintains iodine production through grim US winter ]]> https://www.proactiveinvestors.co.uk/companies/news/195226/iofina-maintains-iodine-production-through-grim-us-winter-195226.html Iofina plc (LON:IOF) maintained iodine production in its latest quarter even with an exceptionally bad US winter and fewer plants in operation.

The Oklahoma-based group extracts iodine from brine produced by onshore oil wells.

WATCH: Iofina kicks off production from new IO#7 plant

Two of its plants (IO#3 and IO#5) were offline at the start of the quarter, while parts of the US were hit by one of the coldest winters in living memory.

Even so, the group produced 118.2metric tonnes (118.7Mt) in the three months to March.

A new plant IO#7, the former IO#3 plant repurposed, opened midway, while a review of the best way to optimise production from IO#5 has now started.

Tom Becker, the chief executive, added it was a solid start to 2018 while the ramp-up of IO#7 would increase output and reduce production costs.

"The trend of iodine prices continues to move upward and is an additional benefit,” he added.

As well as iodine extraction plants, Iofina also has an iodine chemical business, which performed as expected in the first quarter.

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Wed, 18 Apr 2018 07:39:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/195226/iofina-maintains-iodine-production-through-grim-us-winter-195226.html
<![CDATA[RNS press release - Q1 2018 Market Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20180418070002_13608388/ Wed, 18 Apr 2018 07:00:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20180418070002_13608388/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20180416133002_13606031/ Mon, 16 Apr 2018 13:30:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1132/LSE20180416133002_13606031/