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XCAP Securities

  • BY: Andrew Hore |
  • POSTED: 18/06/2013 |

AIM adviser XCAP Securities is raising £525,000 at 0.3p a share.

The share price perked up 0.035p to 0.31p, valuing XCAP at £4.93m.

XCAP continues to raise cash at lower share prices each time. Last year, XCAP issued 439.2m shares at 0.35p each to acquire Hume Capital, which valued the purchase at £1.54m. A placing at 0.35p a share raised £2.4m and there had to be a capital reorganisation in order to reduce the par value from 0.5p to 0.1p so that the shares could be issued. Fewer than two years ago XCAP raised £1.4m at 2.75p a share and when it joined Aim on 17 September 2010 it raised £5m at 4.5p a share.

In the six months to February 2013, XCAP lost £1.92m on revenues of £2.89m. There was an initial contribution from the two wealth management businesses acquired at the end of 2012 and costs have been reduced by 22% compared with the previous six month period. There was £560,000 in the bank at the end of February 2013 following a cash outflow of £1.78m in six month period.

This suggests that the cash outflow will have to be reduced significantly or XCAP will be back for more cash before the end of the year. XCAP is still seeking to appoint further staff.

Key staff have participated in the placing. Non-executive director Kenneth West is buying 8.33m shares in the placing. This takes his stake to 0.55%

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFJune2013_45.pdf

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