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Quoted Micro 3 February 2020

  • BY: Andrew Hore |
  • POSTED: 03/02/2020 |

NEX EXCHANGE

Zapp Electric Vehicles plans to join NEX in February. Zapp has developed an electric bike and it is being produced in Thailand. The first production series model was made in September. The flotation will raise cash for manufacturing and marketing the i300 in the European market where cities are promoting electric vehicles. Zapp Scooters Ltd (the previous name) had net assets of £487,000 at the end of September 2018 and most of that was accounted for by an investment in the Thailand-based subsidiary. VSA Capital is corporate adviser.

Hydro Hotel Eastbourne (HYDP) increased its full year pre-tax profit from £193,000 to £282,000. Revenues were 2% ahead at £3.73m, while the cost base was flat. There were lower repair costs and the capital investment of recent years is beginning to pay off. NAV was £3.49m, including cash of £1.11m.

Ananda Developments (ANA) says that investee company DJT Plants has been asked follow-up questions by the government as part of the application to grow more than 0.2% THC cannabis. Sales of hap devices and hapac sachets has recommenced in Italy. The executive chairman has loaned £30,000 to Ananda at an interest rate of 10% a year.

Sativa Group (SATI) has signed a deal with Alliance Healthcare for the distribution of Goodbody Botanicals cannabis-based products through its 10,000 UK high street clients.

Block Commodities (BLCC) has extended its option to acquire Greenbelt Company, which has access to 4,000 acres of farmland in Sierra Leone. Greenbelt also has a licence for medicinal cannabis production and processing. A premium of £10,000 is being paid for a 90-day exclusive option to acquire the company for £4m in shares at 0.1p each, a premium to the suspension price. The proposed acquisition was announced 10 months ago.

Healthcare properties developer Ashley House (ASH) continues to build a pipeline of affordable housing schemes and it has completed six homes for Corby Borough Council. A loss will be reported for the 18 months to October 2019. More cash is still required.

Rutherford Health (RUTH) has given notice to Woodford Investment Management that it expects it to subscribe £7.5m at 176p a share. This will take the LF Equity Income Fund stake to 26.8%. More cash will be required so that a fourth proton therapy centre can be opened in Liverpool. This cash will be spent later this year.

Formation Group (FRM) reported a return to profit in the year to August 2019, although it was down to one-off gains. A loss of £284,000 was turned into a pre-tax profit of £1.27m. There was still an underlying loss. The NAV is £20.9m, including cash of £16.2m. The focus was completing existing property development projects. At the end of 2019, the cash was invested in Irish development projects. Sean O’Brien and Andrew Bennett, who is a director of Rutherford Health, have become directors of Formation.

Gunsynd (GUN) has rolled over its loan notes to Human Brands Inc into one loan note with a repayment date of 20 January 2021. Human Brands’ Japanese whisky called Shinju is being sold by a major US liquor retailer. The plan is to raise more cash and Gunsynd would receive a fee in shares.

Coinsilium Group (COIN) says that IOV Labs Ltd, which owns smart contract platform developer RSK, has subscribed £250,000 at 2.65p a share and the two firms have signed a memorandum of understanding to launch a joint venture in Singapore. This will commercialise RSK’s products in Asia and to promote RIF tokens which power RSK’s platforms. Gibraltar-based IOV owns 6.94% of Coinsilium, while Coinsilium owns 1.95 million RIF tokens. Almon I Holding has increased its stake in Coinsilium to 3.68%.

Black Sea Property (BSP) is acquiring two subsidiaries of European Convergence Development Company (ECDC) plus outstanding debt of €119.2m. Black Sea Property is paying €3.3m. There will also be the purchase of between 28.6% to 29.9%. This adds two development plots.

Lombard Capital (LCAP) made a loss of £131,000 in the last quarter of 2019. It is still attempting to raise cash via a bond issue.

Ganapati (GANP) says that additional regulations in Malta have required additional time for the registration as a Virtual Financial Asset licence. The application will be filed in the first quarter and a systems audit is being carried out. There are plans to apply for software gaming licence in the UK Gambling Commission and for certificates in Sweden, Denmark, Spain and Columbia.

Slater Investments has increased its stake in IFA group AFH Financial (AFHP) from 10.65% to 12.2%.

Early Equity (EEQP) has raised £113,000 at 0.65p a share. There was £174,000 in the bank at the end of August 2019. Management has informed NEX that the company should be classed as an operating company, rather than an investment company with the remaining investments classed as non-core assets. There are still plans to move to the standard list.

AIM

Computer vision technology developer Seeing Machines (SEE) increased first half sales from A$13.5m to A$15.8m. The automotive division has nine ongoing programmes with six automotive manufacturers. Demand for driver monitoring systems will be driven by regulation. The cost of the Guardian fleet equipment has been cut by 21%. Seeing Machines has launched a crew training system for the aviation sector.

Best of the Best (BOTB) has sparked another profit upgrade, following the one in November. The online competitions organiser reported better than expected interim figures and this led to a 18% increase in the 2019-20 pre-tax profit forecast to £2.6m, compared with £2.1m last year, and a 25% jump to £3m in 2020-21. There is currently £4.3m of cash in the bank and a 14p a share special dividend is proposed. That is the eighth since 2014.

Minds + Machines (MMX) is on course to announce a maiden dividend with its 2019 figures. The onerous contract has been sorted out. Net cash was $6.6m at the end of 2019.

Cloverleaf 374 has increased its stake in Urban Exposure (UEX) from 9.1% to 12.2%. Invesco trimmed its stake from 15.5% to 14.1%. The ultimate owner is Wellesley Group Investors. The board is still reviewing proposals for the future of the property finance provider.

Open Orphan (ORPH) is raising at least £5m via a placing and subscription at 6.1p a share.

MAIN MARKET

Trading in the shares of Baskerville Capital (BASK) on the standard list has been suspended following the announcement of the proposed acquisition of Oberon Investments, which owns smaller company investor MD Barnard. The plan is to move to NEX. An initial 7.83% stake has been acquired for £851,000 with a commitment to subscribe a further £351,000 by the end of April. The acquisition of the rest of Oberon will be paid in Baskerville shares. The deal could be completed by the summer.

Smaller company-focused telecoms services provider Toople (TOOP) has increased its full year loss from £1.4m to £1.67m. In order to build scale, Toople plans to acquire DMS Holding for £1.56m, including £460,000 in cash and 1.05 billion shares. This is a cash generative business and there are potential cost savings. That should offset some of the enormous cash outflow from the existing Toople business. A placing at 0.1p a share will raise £1.2m gross.

Hemogenyx Pharma (HEMO) is raising £650,000 at 1.8p each. This cash will finance further development of the company’s therapies and treatments for blood diseases.

Haynes Publishing (HYNS) increased interim revenues by 4% to £19m with the growth coming from digital. The publisher’s pre-tax profit was 500% ahead at £1.2m. The formal sale process continues.

Standard list shell Bermele (BERM) is raising £200,000 at 1p a share in order to provide further cash to assess potential acquisitions in the pharma sector.

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