28 August 2016

Loss-making Greenchip in share swap

Aim-listed Greenchip Investments, the bombed-out e-business backer-turned degradable plastic specialist, lost 473,500 in the six months to June and has agreed a near-350,000 share swap with the currently floating New Opportunities Investment Trust, writes Robert Tyerman.

Porter Ribb, who has replaced Malcolm Burne as executive chairman of Greenchip, says the company's net assets have increased from 1 million last year to 4.26 million following the reverse takeover of US degradable plastic innovator Programmable Life, though that figure includes goodwill of 4.1 million. Greenchip, which lost 502,100 in last year's first half and 579,200 for all of 2001, says commercial trials for the new products it has backed were initiated 'at a slower rate than the company would prefer' and blames 'global uncertainties'.

However, Ribb says Greenchip is 'in advanced discussions with an [unnamed] target acquisition' and expects to close the deal no later than next February, 'subject to financing and due diligence'. The company has, meanwhile, negotiated to swap 25 million of its own shares now languishing at 1p for 375,000 New Opportunities shares, valued at 1 each before the swap but, in fact, trading at 92.5p on their second day on the London Stock Exchange.

At a 92.5p New Opportunities price, the paper value of this deal is, thus, 347,000 rather than 375,000 although even that represents a hefty premium to the 250,000 market value of 25 million Greenchip at 1p in late 2000, they were more than 30p. Under the deal, Greenchip, which has replaced Grant Thornton with F.W.Smith Richies as auditor, cannot sell the New Opportunities shares for 90 days.

Cash Shells 2015

Published in September 2015 this annual research report provides a comprehensive overview of cash shells on the Main Market, AIM and PLUS landscape. Order your copy today

 

Superb investment toolkit for private investors

SharePad is the new web-based service from ShareScope. Easier to use and more powerful. Perfect for tablets, Macs and Windows PC. Covers ALL your investment requirements.

Growth Company Investor: free trial

Since 2008, our share tips outperformed the benchmark by 281%. Take a free trial and get access to our recommendations today. Start free trial now.

Directors' Pay on AIM 2015

The most comprehensive review of AIM directors' pay available, and this year includes a record sample of 1000+ AIM-quoted companies. The full report is available to order for £385 + VAT. Click here for more info

 

Latest small-cap and growth company news

Daily coverage of small-cap company stocks on London's junior markets AIM and PLUS, breaking news, stock research and latest share price information for investors. Full sector coverage with all the latest news on smaller listed companies, updated several times a day with financial reports, trading statements and links to further web resources.

Popular News

Latest News

Retailers getting One View of their customers

One View listed on AIM via a reverse takeover back in March. It has developed software that provides retailers with a combined view of their customers history in both online and in-store shopping channels. This sort of digital engagement is a big opportunity for retailers to boost their sales.

Angle moves into the clinical trial stage

Angle is making good progress with its ‘Parsortix’ system which uses a precision-etched cassette to ‘sieve’ patient blood samples and capture cancerous tumour cells. The first major trial is now underway in ovarian cancer, led by the University of Vienna.

StatPro benefiting from a Revolution

StatPro shares have done well over the last month with the stock market giving the company credit for the growth in its new ‘Revolution’ product.

Tracsis signs key US deal

Transportation software specialist Tracsis has won a significant contract in the US. This looks like it could be a breakthrough which opens up the vast North American railroad market to this Leeds based company.

MedaPhor expands in ultrasound

MedaPhor came to the market two years ago and the £14 million market cap’s shares have done little since. However a couple of recent developments suggest they are worth keeping an eye on.

ScS sees no slowdown in sofas

ScS Group confirms it hasn't seen a slowdown in demand post-Brexit. Momentum has continued since the update in early June, with like-for-like sales order intake of 14.8 per cent for the first financial year ending in July.

More News