PhotonStar (LON:PSL) – BUY*: Change of Advisor
Market Cap: £5.2m; Current Price: 2.75p#; Target Price: 5.3p
Appointment of Northland Capital Partners as Nominated Advisor and Broker
PhotonStar LED Group plc, the British designer and manufacturer of smart LED lighting solutions, announces that it has appointed Northland Capital Partners as its Nominated Adviser and sole broker with immediate effect.
In its most recent results (May 23rd) for the year to 31st December 2015, PhotonStar reported revenue of £6.90m, -4.0%YoY (2014: £7.19m), comprising LED Fixture Lighting divisional sales of £6.70m (2014: £6.92m) and LED Light Engine division revenue of £0.20m (2014: £0.26m). Recognising a non-cash £1.98m impairment of non-strategic assets, the Group affirmed its commitment to repositioning as a retrofit integrated lighting and building management systems provider.
On June 13th PhotonStar announced renewal of a rolling one-year exclusive supply agreement with a major U.K. house builder to supply LED lighting fixtures throughout its new homes demand; validation of the practical applicability of its product range to a market increasingly focussed on a combination of cost control and reduced environmental impact.
# Price at close 13th June 2016
Northland Capital Partners’ view: We expect the LED lighting market to remain characterised by a combination of strong growth and price-relative competition. In this context PhotonStar’s core Halcyon™ offering - featuring retrofit, behavioural circadian lighting and intelligent lighting management - has the potential to position the Group in a value-added niche for managed systems that are increasingly in demand.
Edenville Energy (LON:EDL) – CORP: Subscription
Market Cap: £2.6m; Current Price: 0.025p
Raises £432,500
Edenville Energy has completed a subscription to raise £432,500 (gross) through the issue of 1,922,222,222 shares at 0.0225p with one half a warrant issued per share at a price of 0.03p.
CEO, Rufus Short and COO, Mark Pryor have subscribed for 44,444,444 shares each (£10,000).
Following the subscription the company will have 12,427,060,094 in issue.
NORTHLAND CAPITAL PARTNERS VIEW: Edenville Energy is planning to use the proceeds of this subscription for advancing; mine development including bulk sampling and analysis, the regulatory requirements for the mine and power plant development, commercial discussions with Tanesco and also general working capital. Edenville is conservatively run so these funds will allow them to make large strides in advancing the Rukwa coal to power project.
ImmuPharma (LON:IMM): Lupuzor symposium
Market Cap: £45.5m; Current Price: 37.4p
Symposium on the mechanisms of action and further potential uses of Lupuzor™
Last week we attended a symposium hosted by ImmuPharma on Lupuzor™, the company's lead compound for the potential treatment of Lupus, a chronic auto-immune disease, currently in a pivotal Phase III trial.
The event was led by Prof. Sylviane Muller, the inventor of Lupuzor™, who presented on the unique mechanisms of action of the drug. Prof. Muller recently received 'The CNRS Medal of Innovation' for her discoveries made on Lupuzor™.
Of note, Prof. Muller provided further evidence of the role of Lupuzor™ in the potential treatment of other diseases beyond Lupus.
A video of the presentation is now available to view on the company's website on: www.immupharma.org/events/2016.
NORTHLAND CAPITAL PARTNERS VIEW: The symposium provided a good overview of the mechanisms of action of Lupuzor™. Also of particular interest, was the evidence provided on the further potential uses of the drug in other major disease indications, including Rheumatoid Arthritis, Crohn’s Disease, and Asthma.
Market Cap: £16.3m; Current Price: 67.5p
US JV approval for Class ll Mobile solution
Respin LLC, which is a JV between Nektan and Spin Games LLC in the US has received approval from the designated independent test lab for its ‘Rapid Games’ product, a Class ll Mobile in venue gaming solution. This is applicable to games of chance such as bingo and slots where games are played on a pooled basis (peer to peer).
Class II gaming in the US alone is a significant market at c. £33bn annually and the product opens the way for tribal jurisdictions in particular to deploy the solution and allow their casino patrons to play Class II games on their mobile devices within designated areas of the casino property.
Rapid Bingo and an additional array of games are scheduled for release in the 3rd quarter 2016.
NORTHLAND CAPITAL PARTNERS VIEW: A positive development for Nektan where the Class II Mobile approval not only benefits tribal casino customers but also opens up a new revenue stream for the Nektan JV, where as per the trading update in April showed revenues were growing strongly over the three quarters to March 2016.