Small Cap Wrap: 5th October 2016

5th October 2016

Petards on the right tracks

Sareum gets its patents

RM2 gets stacking

Ace Liberty & Stone Plc (LON:ALSP 4p/£39.3m)*


Ace Liberty and Stone, the active property investment Company, capitalising on commercial property investment opportunities across the UK, announced its Final Results for the year ended 30 April 2016. Highlights showed the Group’s property holdings have grown 23 percent during the year from £23.96m to £29.49m. Total equity attributable to owners has increased by 45 percent in the year to £17.94m (2015: £12.41m). Consolidated Revenue for the year increased 70 percent to £2.04m (2015: £1.2m). Profit before tax decreased to £0.6m (2015: £1.06m) as a result of a reduced portfolio valuation as  at 30th April 2016. Profit-yielding sales of properties including the final holding in Telephone House, Sheffield for £4m  and Princegate House, Doncaster (excluding car park) for £0.85m. The sale of Hume House has been agreed at £3.55m for completion in December 2016. The Company also announced a further addition to the Company’s portfolio with the purchase of 1-5 Upper Market Square, Hanley. The contracts were exchanged on 8 August 2016 by Ace (Hanley) Limited, a 100 percent subsidiary of the Company, for the sum of £9m, with completion on 8 November 2016. The property is located in a prime position in Hanley, which is the primary commercial centre of Stoke-on-Trent. It is comprised of two retail units arranged over basement, ground and three upper floors, totalling 59,358 square feet. 74 percent of the letting income comes from Boots Limited, with 24 years unexpired and remaining income from National Westminster Bank for 12 years.

Cambridge Cognition (LON:COG 83.00p/£17.27m)*


The neuroscience Company which develops and markets near patient technologies to facilitate early intervention and development of treatments for neurological disorders, announced the signing of two major contracts using the Company’s CANTAB Connect technology. The contracts totalling US$3.67m (£2.82m) are with US biopharmaceutical companies for late stage clinical trials and will contribute US$1.07m(£0.82m) to reported revenue in the second half of 2016. The award of the contracts was expected and so the outlook for the current year remains unchanged.

Conroy Gold and Natural Resources (LON:CGNR 26.5p/£3.05m)*


Conroy Gold and Natural Resources, the gold exploration and development Company focused on Ireland and Finland, announced the latest results from its drilling programme on the Clontibret gold deposit at the southwestern part of the Company’s Clay Lake – Clontibret gold property. High grades and wide intersections included 0.50m at 25.85 g/t gold in one of the already known gold zones and 5.75m grading 5.04 g/t gold in one of the newly discovered gold zones. Five new gold zones (lodes) were discovered during the latest drilling. Gold intersections were also made in four known gold zones in the area, confirming continuity of these lode zones. The deposit remains open to depth and in all directions. The drilling focused on upgrading, at this stage to a depth of 200m, an area where previous drilling had indicated the potential for significant widths and gold grades.

 Fitbug Holdings (LON:FITB 0.24p/£2.93m)*


 Fitbug Holdings , the provider of corporate wellness solutions and services, announced its Interim Results for the six months ended 30 June 2016. Implementation of turnaround strategy away from retail to Corporate Wellness has been underway, total sales of £0.73m (2015: £0.99m), with B2B sales of £0.56m (2015: £0.37m) leading to gross profit of £0.41m (2015: £0.53m) and a loss before tax £(1.6m) (2015: £(3.22m)). Good progress has been made on Corporate Wellness offering made with three strategic partners and also there has been a significant reduction in permanent cost base and engagement of outsourced service providers for development of platform and ancillary services (IT, logistics, finance admin).

 ITM Power (LON:ITM 20.59p/£44.55m)


ITM Power, the energy storage and clean fuel Company, announced the completion of the 700 bar upgrade to the M1 Rotherham hydrogen refuelling station (HRS) funded by The UK Government, Office of Low Emission Vehicles (OLEV). On 28 March 2015, the Company announced that it had been awarded a total of £2.89m by the HRS infrastructure Grants Scheme, run by OLEV. The award was to build two new HRS in London, sited with strategic partners and for the upgrading of four existing ITM Power refuelling stations including the M1 Rotherham HRS. The HRS, originally funded by Innovate UK, is located at the Hydrogen Mini Grid at the Advanced Manufacturing Park in Rotherham just of J33 of the M1, close to the junction with the M18. The HRS is an important strategic part of the UK hydrogen infrastructure enabling vehicles from London to access the North of England. Using the existing electrolyser to generate hydrogen from an on-site wind turbine, the original 350 bar dispenser has been upgraded to a new BOC/Linde system capable of dispensing hydrogen at both 700 and 350 bar.  The higher pressure of 700 bar satisfies the requirements of a broader range of vehicles and enables fuel cell electric vehicles such at the Toyota Mirai and Hyundai ix35 to achieve their full driving range of over 300 miles.  New and existing customers will also benefit from automated payment facilities.

 MediaZest (LON:MDZ 0.15p/£1.89m)*


MediaZest, the creative digital audio visual Company, updated shareholders with more detail on recent business wins. The Group confirmed that the new Rockar project noted in the results announcement of 12 August 2016 relates to audio visual design, build and installation services at their new showroom at Westfield Stratford in collaboration with Jaguar Land Rover. This follows previous work with Rockar in conjunction with Hyundai, which began in 2014, with a first physical site at Bluewater shopping centre in Kent followed by a second Rockar-branded store in Westfield Stratford – a project for which the Company also completed the audio visual design, build and installation services. Separate to this, the Company announced over £250,000 of new business wins secured since 12 August.

 Netcall (LON:NET 54.35p/£40.44m)


Netcall, a leading customer engagement software provider, announced that it has secured a minimum £1.5m contract with a FTSE 250 Company. The Company is an existing customer of Netcall’s business process automation product. The new five year contract is for the delivery and use of Netcall’s Liberty omni-channel Contact Centre, Unified Communications, Workforce Optimisation and Customer Experience Manager solutions. Each module will be delivered using the Liberty Software as a Service (SaaS) model. Netcall’s SaaS based Liberty solutions have been selected by the customer as part of a major transformation project for their existing contact centre and customer support infrastructure. They will enable the customer to improve internal operations, performance and productivity, bringing together multiple service lines into a single virtual customer engagement platform, while creating a better customer experience and driving competitive differentiation. The customer also recently signed a significant extension agreement for Netcall’s business process automation product which will continue to run as a premise-based solution. This demonstrates the Liberty platform’s strength as a blended platform, catering for both the rapidly growing SaaS market while continuing to provide sophisticated solutions for customers requiring a premise-based installation.

Physiomics (LON:PYC 0.024p/£1.45m)*


The Company announced that it has completed a placing, conditional only on Admission, to raise £555,000 at a price of 0.025p per share. There was strong investor interest in the new Company management and in the clinical version of the Company’s Virtual Tumour technology.  Based on investor discussions, they decided not to proceed with the acquisition of BioMoti Limited which was announced by previous management on 31st March 2016.  Shareholders were more supportive of management focusing 100 percent of their efforts on growing the revenues and creating a path to profitability in the core modelling and simulation business at this point. There may be opportunities in the future to engage with BioMoti and other companies with interesting pipelines that Physiomics can optimise, and the Company remains committed to exploring these options.  In the meantime, the proceeds of the placing will be used to conduct and accelerate business development activities related to the Company’s core modelling and simulation business, in particular the clinical version of its Virtual Tumour technology which enables predictions to be made of the outcome of human trials based on pre-clinical and other data.

 Proxama (LON:PROX 1.08p/£18.92m)


Proxama, the leading mobile proximity marketing expert, announced that GLACÉAU smartwater, owned by Coca Cola, is the latest brand to utilise their proximity products and services. GLACÉAU smartwater has commissioned an engaging new out of home campaign that uses Proxama’s beacon technology to share tips from influential Londoners, with members of the public. Launched on 12th September, the outdoor campaign, alerts users in the nearby proximity and will be live until the end of September. From the tastiest brunch in Chelsea to the trendiest pedicure in Hoxton, the GLACÉAU smartwater campaign aims to distil the very best bits of London into ‘on-the-go’ recommendations for busy Londoners.  The adverts, located in areas within Chelsea and Hoxton, will alert consumers to check out top tips from London based influencers, including blogger Reem Kanj and stylist Roxie Nafousi. Smartphone users with Mapway’s Bus London Android app installed will receive a push notification encouraging them to click and discover top recommendations in the area.

 Sareum (LON:SAR 1.16p/£30.80m)*


Sareum Holdings, the specialist cancer drug discovery and development Company,  announced that its co-investment partner, the CRT Pioneer Fund, has licensed exclusive and worldwide rights for the Chk1 inhibitor cancer drug candidate CCT245737 (to be renamed PNT737) to ProNAi Therapeutics, Inc. (NASDAQ: DNAI). Under the terms of the agreement, an immediate upfront payment of US$7.0m is due to the co-investment partners and an additional fee of up to US$2.0m will be payable upon the successful transfer of the two ongoing Phase 1 clinical trials to ProNAi.  Additional payments in the aggregate amount of up to US$319.5m may become payable upon achievement of certain development, regulatory and commercial milestones. ProNAi will also owe high single to low double digit royalties on the net sales of any product successfully developed. Under Sareum’s agreements with Cancer Research Technology and the CRT Pioneer Fund, Sareum is entitled to 27.5 percent of these payments. Therefore, Sareum will receive (i) US$1.9m as an upfront payment, (ii) potential future milestone payments of up to US$88.4m, some of which are expected to be paid within the next twelve months upon certain development milestones being met and (iii) its share of any sales royalties.  Furthermore, the unspent balance, estimated at c£300,000, of the financial commitment to the trial funding of £797,500 made by Sareum in December 2015 will be returned to the Company.

 Venn Life Sciences (LON:VENN 23.54p/£14.77m)*


Venn Life Sciences, a growing Contract Research Organisation (CRO) providing drug development, clinical trial management and resourcing solutions to pharmaceutical, biotechnology and medical device clients, announced its unaudited interim results for the six months ended 30 June 2016. Financial Highlights showed revenue of €9.06m (H1 2015: €4.25m), EBITDA profit of €0.40m (H1 2015: profit of €0.09m) and an Operating Loss of €0.033m (H1 2015: loss of €0.079m). Cash and cash equivalents of €1.75m at 30th June 2016 (€1.10m at 30th June 2015) and Cash and cash equivalents of €2.10m at 23rd September 2016. Operational Highlights showed progress on Kinesis integration and initial cross sales achieved. Continued progress on systems infrastructure with resultant improvements in operating margins, with successful achievement of key project milestones leading to strong client endorsements and repeat business. The Company also strengthened the board with the appointment of Allan Wood as non-Executive Chairman and Mary Sheahan as non-Executive Director, continued positive progress on new business with €2.8m contract and preferred vendorship with big Pharma announced in August. Lastly, the Company has entered into a process to sell its innovation division, Innovenn. This sale will represent the culmination of several months of effort to re-position Innovenn in such a way that will bring better clarity to the performance of the core business, and realise value from an investment in Innovenn.  The Company also  announced that its wholly owned subsidiary, Venn Life Sciences Limited, has entered into a conditional agreement under which it and Lynchwood Nominees Limited, as custodian for the Helium Rising Stars Fund, would sell the entire issued share capital of Innovenn UK Limited for a total consideration of up to £4.74m.

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