ValiRx Plc (LON:VAL) - CORP: VAL201 clinical trial update
Market Cap: £10m; Current Price: 33p
VAL201 trial progresses through to next dose escalation
- ValiRx issued an update on its lead compound, VAL201, in its Phase l/ll dose escalation clinical trial, which is approved to include patients with locally advanced or metastatic prostate cancer and other advanced solid tumours.
- The group indicated that the approved incremental dose escalation has continued to demonstrate safety and tolerability, with no significant adverse effects recorded.
- In addition, the compound continues to show similar properties and results in terms of delaying disease progression in patients with locally advanced or metastatic prostate cancer to those witnessed in pre-clinical studies.
- In light of the additional safety and tolerability data that has been obtained, the next dose escalation has been approved, which may prove sufficient to show anti-tumour activity.
- The trial is on track and is proceeding according to the group’s expected timetable.
NORTHLAND CAPITAL PARTNERS VIEW: ValiRx’s flagship programme, VAL201, continues to progress to plan. To date, the treatment has demonstrated good tolerability while showing initial signs of efficacy. Now that the next dose escalation has been approved, we may begin to see clearer signs of therapeutic effect.
Fishing Republic plc (LON:FISH) – CORP: Trading update
Market Cap: £4.5m; Current Price: 19p
Trading Update
- A positive 1H15 update from recently listed Fishing Republic (FISH.L). Overall sales, stores & online, in the first six months of FY15 show a slight increase on the same period last year, however margins have improved significantly and online sales in particular are significantly ahead of the same period in the prior year. This reflects management initiatives to improve the company’s own website sales, one of the key strategies which, was outlined in the admission document at the time of IPO in June.
- Trading in the 2H15 has started well and the company is looking to expand operations through smaller bolt on acquisitions which it alluded to in its admission document at time of IPO. The company is also making progress regarding opening a new store in the Midlands. Maiden interims are due on 2nd September 2015.
- Northland Capital Partners acts as Nominated Adviser and Broker to Fishing Republic plc and full coverage will follow in due course.
Amino Technologies (LON:AMO) – BUY: Interims and major acquisition
Market Cap: £75.2m; Current Price: 139p; Target Price: Under review
H1 continues growth; proposed acquisition of Entone
- Revenue +9% to £17.9m with gross margin increasing 590bps to 50.8% reflecting an improved product mix. Hence adj. EBITDA increased 34% to £3.9m representing a 430bps improvement to 22.0%.
- Strong growth reported in North American markets. Further orders for the Live Advanced Media Platform from an existing customer and good initial take up of the A150 IP device. Progress on availability of Home Reach has been slower than expected. Good demand for lower spec products in LatAm, while Europe remains challenging.
- Net cash generated by operating activities +19% to £3.8m and net cash of £17.3m (FY14: £20.8m) following the acquisition of Booxmedia Oy for £4.5m, FY dividend payment of £0.7m and £1.1m spent on capitalised R&D (H1 FY14: £1.6m). Proposed interim DPS +10% to 1.265p.
- Conditionally agreed to acquire Entone Inc, a provider of hybrid TV and connected home products, for a total consideration of $73.0m (£46.5m) and involves a proposed placing of £21.0m via an accelerated bookbuild at 130p/share. There is an initial cash consideration of $65.0m (£41.6m) with the balance to be paid on the first and second anniversaries of the completion. Entone had net cash of $12.0m as at May 31st. The acquisition is expected to be earnings enhancing in FY16 with EBIT synergies of c. £1.0m in the first full year.
- Entone has >150 global customers, is a direct competitor of Amino and will add considerable scale – particularly in the US. Entone’s FusionHome, a home monitoring system, and Engage, hosted field service software suite, are of particular interest to Amino. While Entone’s middleware integrations are complementary to the existing Amino offering. In the 11 months to 30th May, Entone had revenue of $46.7m and EBITDA of $5.3m.
- Forecasts and price target placed under review.
NORTHLAND CAPITAL PARTNERS VIEW: Good H1 performance with continued growth at the revenue line and improvements in margin through a richer product mix. The numbers are overshadowed by the proposed acquisition, however, that brings substantial scale to its operations. The acquisition will absorb the majority of Amino’s substantial cash buffer and also result in the drawing down of its $8.0m RCF. Standard risks apply to such a large US acquisition but management has delivered over the past few years returning Amino to growth and pushing up margins.
ECR Minerals (LON:ECR): Itogon trenching results
Market Cap: £2.3m; Current Price: 0.06p
Defining a large supergene enriched oxide zone at surface
- Trenching results at the Itogon Gold Project, located in the Philippines, include: 97.6m at 2.57g/t Au (TR09), 72m at 1.28g/t Au (TR05) and 67m at 1.13g/t Au (TR04)
- NI43-101 compliant mineral resource estimate planned for completion in September 2015.
NORTHLAND CAPITAL PARTNERS VIEW: ECR Minerals’ trenching results at the Itogon Gold Project continue define a large supergene enriched oxide gold blanket that occurs at surface. The supergene zone is expected to form the bulk of the Company’s maiden mineral resource estimate for the project expected in September 2015. Previous drill programmes completed at Itogon appears to indicate that the Company has only tested the upper parts of the epithermal system and that the main higher grade feeder zone common in this type of deposits, if present, is yet to be discovered.