27 August 2015

Loss-making Greenchip in share swap

27/09/2002

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.

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

Casino gaming has been changed by new technology

Technology is changing the face of the casino  18/08/2015

Technological innovations have seriously helped reshape the way in which we interact with the world and the people around us. And the smartphone has become a one-stop device for communication, travel, online browsing, taking photos, watching videos and even high-definition gaming.

Nominations open for the Grant Thornton Quoted Company Awards 2016 18/08/2015

Nominations are now open for all categories in the Quoted Company Awards, to be held on 27 January at the Natural History Museum in London. 

Empiric Student Property makes £8.1 million investment  17/08/2015

Empiric Student Property has confirmed to the market an investment of £8.1 million in a complex of 132 purpose-built student apartments in Falmouth, Cornwall. 

Satellite Solutions Worldwide makes French acquisition  17/08/2015

AIM-listed Satellite Solutions Worldwide has announced the purchase out of administration of French broadband provider Sat2Way. 

Venn Life Sciences shares gain ground in wake of positive trading update  13/08/2015

Shares in clinical research organisation Venn Life Sciences are up around 5 per cent at the time of writing following the company's positive trading update ahead of its results announcement for the first half of the year on 22 September.

VPC Specialty Lending declares maiden dividend  13/08/2015

A dividend of 0.9p per share will be paid by VPC Specialty Lending for the period from its incorporation to 30 June 2015.

More News