Micap Share Discussion Threads

[dell314] 11/10/2006 08:17

Good news for holders in that MIC are trading again, albeit with an approximate doubling of the issued share capital by way of a heavily discounted placing.

However, I note that the "breakeven at year end" forecast appears to have been revised, admitting that this is only the case if certain trials and potential trials become firm orders, and a couple of the financial points are different to what I remember from previous statements but at least holders have tradeable stock again.

I have to admit that I was a little surprised by the suspension here, as MIC have used the likes of City Equities in the past to place stock(and there are companies that are apparently in much worse financial positions still trading!), so it seemed odd that they were struggling to obtain finance, this time around.
I'd guess that they originally had alternative more favourable options that fell through, causing them to have to resort to such a heavily discounted placing...

All IMHO, DYOR etc.

Rgds
dell

[feelinlucky] 11/10/2006 07:57

Sounds like a case of take yah money and run while yah can episode!

[the bull] 11/10/2006 07:41

another fine mess

[janus62] 05/10/2006 13:03

Oh well !!

MICAP PLC
05 October 2006


MICAP PLC (the 'Company')

5 October 2006


The Company has today requested the suspension of its shares from trading
pending clarification of its financial position and short term working capital.






This information is provided by RNS
The company news service from the London Stock Exchange

[unionhall] 25/9/2006 11:13

I'm not a holder at the moment - dabbled in this a year or two ago and keep watch for interest and possible low-point to re-enter.

My view is not to invest now until there really is positive cash-flow or at least another positive RNS re real increased revenues (not forecasts).

A lot can happen in six months and the history here of actually achieving the breakthroughs promised is not good. On the other hand it wouldn't take much to change the picture positively either.

Just my opinion......

[don muang] 25/9/2006 10:41

Gave up using iii long time ago after they became part of 'Ample'. Used their subscription services but so many problems and naff technical support. Think they've improved a bit now they're post-Ample. But don't think the BB 'quality' there ever 'recovered' from the Ample mismanagement of iii.

[double6] 25/9/2006 10:37

See the iii lot are ramping.

[don muang] 25/9/2006 10:30

ok ... I misread it slightly as read rns quickly ... (as also scanning thru other interesting rns's earlier this morning @rns-time : TPS, TER, LDC, PYF, SGM, LAF) ... so profit now 3 months later than planned as opposed to 3 months from now.
I presume that's frustrating to investors that have been holding for a while. But personally for me I'm quite happy to wait as only bought in during this year as a long term play (as with its spread its a buy/hold rather than a trading opportunity).

[dell314] 25/9/2006 10:24

unionhall - exactly. So that is 12 months of further monthly losses from the last balance sheet date, until projected breakeven at the financial year end(assuming that they actually achieve it)....

Rgds
dell

All IMHO, DYOR etc.

[unionhall] 25/9/2006 09:40

6 mths to end of financial year.....

[don muang] 25/9/2006 09:08

and even if some extra shares were issued to cover the bridging facility plus a bit of extra working cap, then I don't think the issue price would be below existing bid price (wouldn't be above offer price either .... given spread).
also they have the option of convertable loan.

[don muang] 25/9/2006 08:54

have to disagree ... they have to disclose relevant financial information... so they have to include the short term facility.... with relevant wording

note that I said bridging facility in my post .... I deliberately didn't say bridging loan. also didn't say barrels of cash would start rolling in .... just mentioned (as per rns) that they'd reach a break even point .... and at least they've given a timescale as opposed to 'during the next financial year we hope to etc...).

[dell314] 25/9/2006 08:45

Don - If all they needed was a bridging loan until the barrels of cash started rolling in, don't you think that the financing would already be arranged?
Surely, they'd have just showed their projections to the bank and got a short term increase in facilities.

I see the fact that they've mentioned it in today's RNS as a warning to shareholders....

All IMHO, DYOR etc.

Rgds
dell

[don muang] 25/9/2006 08:20

ps: but increase in bid price is fairly irrelevant given there's been no transactions yet.... (I don't have L2).... so let's see what he fitst sizable trade brings ...

[don muang] 25/9/2006 08:15

yes ... but .... notice mention of it being 'short term working capital'.
It's effectively for 3 months so is just a bridging facility - and they've gone on record with a date for breaking even.

[dell314] 25/9/2006 08:11

Hands up everyone who spotted the key point in today's update....

Yes, towards the end of the "Trading Update", hidden amongst every positive they can think of to hide it, is a little section confirming what some of us had already guessed:

"The company is considering various financing options, and is confident that with the progress made in recent months it will be able to raise adequate funding for its short term working capital commitments to take it through to break even".



I'm surprised that MMs have marked it up on the back of this, as they are usually quick to mark down, when they see anything about a fundraising(unless they are long and working a bull trap)......

All IMHO, DYOR etc.

Rgds
dell

[learntlesson] 14/9/2006 17:11

I think thats a good point regards agricultural products. I think there will always be a market for Organics (to grow) or at least non-GM (to become niche?) - and whereas I don't see that market supporting flavour or shelf life enhancements - it certainly could create a decent business for the encapsulated natural insecti/herbiscides.

[m.t.glass] 14/9/2006 17:00

In foods, I didn't think the particular flavour itself was what they were really concerned with - merely improving the application of it, and postponing the degradation of it? In particular, shielding the flavourings (the ones already in use) from degradation during normal processing. I can certainly see the appeal there. Especially if the economics of reduced wastage and better shelflife outweigh the cost of employing Micap's technique. But maybe they don't..

In scents and scented household products (which I presumed was Firmenich's key interest) delaying degradation is a very important issue - so I would certainly expect there to be some prospects there too. Especially in expensive scents, where price margins are high and quality is key - and in delayed-release airfresheners. The fact that Firmenich have apparently not adopted Micap's technique with greater enthusiasm is a worry.

Delayed release agricultural products (reducing the need for repeat applications of insecticides and herbicides) is surely an area that would win support from a greenminded market, if it works.

I just wonder where the failure is occurring? Is it in the reliability of the technique, or in the costs? Or just in poor management?

I hope that having a food industry man as commercial chief doesn't skew everything in the food direction and leave those other areas bereft of attention.

mtg

[learntlesson] 14/9/2006 16:29

Basically M.T. I think the technology, in essence, has an application and a future. But not in flavour. i just don't see how the demand for improved flavour is great enough to warrant risk and expense by food companies by introducing an additional process.

It is far more likely IMO that any changes to the flavour characteristics of our foods will come from Genetic Modification - which can bring several benefits concurrently and with no change in manufacture. Although im largely against GM, esp. the reckless way it is being introduced, I think over time it will happen - if anything because the amount of contamination is increasing as we speak so soon there will be no Unmodified crops to defend....

LL

[m.t.glass] 14/9/2006 12:20

Afraid I agree with the negative interpretation of what sounds like rose tinted whitewash.

Shane Delaney was Sales/Mktg Director of , who I understand Micap acquired (wholly or in part) when he became Micap's commercial director?

I wish him luck. Maybe he will outperform (mainly non-food) worldwide sales effort.. It isn't unknown for small developing companies to cripple their prospects by handcuffing themselves to an impressive sounding licensing agreement that doesn't deliver - and which they might be better off without. And maybe that's the spin they are looking to apply here (though I did't think that's what the Firmenich deal involved). Got their work cut out though in making headway with customers who don't know them as anything other than a very tiny (£1.25m) company operating alone.

[dell314] 14/9/2006 09:48

Don - From a short term financial point of view, it appears to be neutral or slightly positive, if what they say about revenues is correct.

However, it is surely a major setback, considering that the termination of this agreement appears to indicate the failure of Fermenich's attempts to globally market the technology.
This is what MICAP said about the agreement in a previous results statement:

In Autumn of 2004, Firmenich, our global flavour partner, officially launched
Thermarome, a branded flavour technology created utilising the Micap technology.
Firmenich also exercised its option to extend the licence to all flavours, with
an increased licence fee and the prospect of further royalties outside of the
initial applications in savoury foods.

Thermarome is being promoted to a worldwide audience of international food
companies as an encapsulation technology offering high temperature stability,
free flowing powder (for ease of handling) and optimised flavour release in the
mouth. Particular benefits are offered to flavoured fried products such as
batters, coatings, noodles, and potato and tortilla chips. The launch was
sponsored by two major, worldwide food companies, with whom a number of projects
are still ongoing. The first contract win was in the area of speciality pasta,
where the thermal benefits of the technology are advantageous. We are confident
that the marketing effort being put into this launch by Firmenich will lead to
significant royalties to Micap over the coming years.

All IMHO, DYOR etc.

Rgds
dell

[don muang] 14/9/2006 08:29

So do we take the positive spin on the RNS as 'good news or as 'bad' news being passed off as 'good' news?

[janus62] 14/9/2006 08:27

MICAP PLC
14 September 2006


For release 07.00am 14 September 2006


MICAP PLC ('MICAP') ('MIC.L')

The AIM - quoted technology company specialising in the
microencapsulation of active ingredients


Re: Licence agreement


'Micap freed to promote direct sales of its yeast based flavour products
following termination of licence with Firmenich SA'


Yeast based flavour products

It has been apparent to Micap plc for some time that, with the Company's
acquired spray-drying capabilities, significant advantage and value could be
gained by taking over direct sales of its yeast based flavour products.
Firmenich SA has now decided to terminate its license with the Company and as a
result, Micap looks forward to leveraging upon its current production capacities
in Ireland and accelerating the supply of flavour products.

Following the acquisition of Micap Encapsulates Ltd, a spray-drying production
plant based in Athlone, Ireland, in November 2005, Micap has been able to supply
flavour products in a cost efficient way, allowing it to establish profitable
direct sales relationships. Micap's margin from these sales already exceeds the
annual contribution from Firmenich. The License with Firmenich, however, limited
the opportunities for Micap's further promotion of the direct sales channel.

The license with Firmenich will terminate with effect from 31st March 2007.
Accordingly, Micap will be free to actively pursue contacts with interested
parties, and to promote its technology through a range of flavour companies.

Commenting, Michael Norris, Chief Executive of Micap, said:

'I am grateful to Firmenich for the investment they have put into our
technology, particularly in the early years of the Company's development.
However, since the acquisition of Micap Encapsulates and the appointment to our
Board of Shane Delaney, who has many years experience in ingredients sales, we
have seen major opportunities for direct sales of flavour products. I am
confident that we will generate significantly more value for the Company from
our own efforts than could have arisen from our license relationship.'


For further information please contact:

Contact:

Micap plc [phone]
Michael Norris, CEO

Adventis Financial PR
Tarquin Edwards/Chris Steele 020 7034 4758 / 020 7034 4759
07879 458 364 / 07979 604 687

Notes for editors:

About Micap

Micap is a provider of microencapsulation

[don muang] 16/8/2006 08:52

OK does anyone want to own up to purchasing 500 of these at 3p just now....?!