|Ram Active Media
||EPS - Basic
||Market Cap (m)
Real-Time news about Ram Active (London Stock Exchange): 0 recent articles
|genises: Nothing on the grapevine but if they haven't they should contact this company
Tangibal Ventures focuses on identifying investment and business incubation/acceleration opportunities in both digital media networks (advertising networks) and emerging but proven digital media technologies in the digital out of home (DOOH) and Point of Purchase (POP) markets
Tangibal signs binding terms to acquire Westpoint Media GmbH a German Screen Network in Shopping Malls
Tangibal signs binding terms to acquire Westpoint Media GmbH a German Screen Network in Shopping Malls
London, 5th April 2013. Tangibal Group Plc is pleased to announce that it has signed a binding Heads of Agreement to acquire Westpoint Media GmbH and its existing highly visible media network of 280 screens in 10 premium shopping malls across Germany.
The high bright screens are located in highly visible central locations within the malls. Full details and images of the screens can be found at hxxp://westpointmedia.com/advertising
Tangibal will acquire 100% of Westpoint in return for a total of £550,000 of new Tangibal shares split £250,000 on completion and a further £300,000 of new shares after 180 days have lapsed from completion and at the average share price of the stock across two weeks preceding closing so long as the share price is not over 50 pence at the time. Furthermore as part of the acquisition Tangibal will be taking on an existing loan arrangement of £200,000 which is payable from revenues derived from German malls only, although the lender will have the right to convert the loan into new shares in Tangibal Group Plc. The minimum conversion price has been set at 25 pence.
The Group's intention is to expand this network to an initial 500 screens through cash flow generated by the network and eventually we believe the market can sustain up to 1,000 screens across Germany.
The Group expects this network to deliver around £700 per screen per month net of sales commissions income to the Group, which at full capacity of 1,000 screens is expected to deliver around £8.4 million of turnover per year.
Dominic Brookman CEO commented, "We are very optimistic about the potential of this new screen media network as we have both first mover advantages in the region as well as critical mass which creates a barrier to entry. We believe this will deliver significant revenue and profits to the Group. With a target of 1,000 screens across Germany we believe this network will become a major part of the overall German outdoor media market. Tangibal will continue to build on this strategy of earnings enhancing acquisitions to deliver positive shareholder returns."
Raised £3.5 million in Sept
The Company intends to apply the proceeds to increasing its digital advertising screen networks in shopping centres in the UK and India. The company is aiming for a UK network of in excess of 500 digital screen locations and in India in excess of 1,000 digital screen locations.|
|genises: Cant understand why the share price didn't go back up with the buys.
Seems the mm are holding the price down.
We need to see the next lot of news before the placing.|
|abadan2: I may be wrong but it looks like the £5m deal with TCA is a straight forward "pipe" deal! In other words, TCA will be happy to provide funding of £5m to RAM on the basis that it has sold £5.25m of shares ahead of this. This will happen in small blocks and be an overhang on the share price. TCA is unlikely to have any real interest in holding any shares, which is evidenced by the fact that they did not subscribe for any in the placing and were only prepared to make a loan charging 14%.|
|t-raider: If you invest in AIM stocks, then its more than likely you've seen at least one of your holdings share price disintegrate ( whether you continued to hold through the process or not).
RAM is certanly no different, down 60 - 70% in the last 4 months.
So any any rise that is achieved and held, is a little respite. We're up 25% or so from recent lows and there remains plenty of scope for more.
No volume may be down to liquidity or just lack of interest ( and awareness ).
Some of us believe that RAM may have hit the bottom, cleared out their dead wood and provided the base for a recovery.
If this is the start and RAM can show signs of progress ( trading update / contract wins etc. ), then 5p in a month or two's time, may just be a distant memory.
All imo of course.
|genises: Not the only one who thought the same.
I expected something from trainfx after a year of no news.
The lack of news on the placing hasn't helped the share price.The new CEO is very quiet.
Cant buy more than 5000 now.
news would be good timing for the share price .|
|genises: Another silent day while ram share price declines even further.
Just think Ram will need to issue 3 times the amount of shares for the placing to go ahead.
An update is required on where we are.|
|cgod: Thats the way i read it.
The Company's trading has improved in the second half of the year and its network of screens has continued to grow. The Company has been presented with additional opportunities but, in order to take advantage of these, the Company requires further funding to be raised in the short term. However, as the Company's shares are currently trading around the nominal value of the shares, it makes it very difficult for the Company to raise further funds.
In addition, the Board notes the wide spread in the price of the Company's shares with individual market makers. The Board believes that this spread is in part a function of the market price and that the percentage spread would be smaller at a higher share price.
As a consequence, the Board believes that the prudent and sensible approach is for the Company to undertake a share capital re-organisation. The purpose of this letter is to set out the details of this proposal and to convene a general meeting (notice of which accompanies this letter) to seek shareholder approval for the resolutions detailed in paragraph 4 below ("Resolutions").
2 Chairman's Statement
Your Board is requesting a general meeting ("General Meeting") on 10 December 2012 to pass a series of resolutions designed: (i) to enable a future capital raising tied into the Stream TV Network Inc. ("Stream") joint venture announced today; (ii) to enable the distribution of bonus warrants to shareholders (further details of which are set out blow); and (iii) to rebase the share price to a level more likely to attract institutional shareholders.
Your Company will need new capital to strengthen the balance sheet and to complete the joint venture with Stream. The capital raising is conditional on the outcome of the General Meeting and the price per share of the placing ("Placing Price") will be set after the General Meeting and the capital reorganisation has become effective. The Company has expressions of interest from new shareholders to assist in this, subject to the Resolutions being approved. The Board is conscious of the dilution suffered by shareholders in recent placings and of the lower share price. The Board believes that the Company is at an exciting juncture and the bonus warrants are therefore being issued to shareholders as a means of enabling shareholders to participate in any future upside alongside any new placees brought in. It is the intention of the Board to exercise their own warrants in due course.|
|vivgav: Is that slide for the RAM share price???|
|vivgav: Another poor week for the RAM share price.|
|howdlep: GE&CR paid research tip just out. As stated last week the SF T1PS Smaler Companies Growth Fund bought a little under 2% of the company last week:-
Ram Investments* Initiate Coverage at 5.5p: Buy with target of 9.2p.
GBP 1.5 million loan
Total no of Shares
GBP 6.1 million
12 Month Range
Tim Baldwin, Executive Chairman, 020 7493 8820
Since March 2009, Ram Investment has transformed itself from a diversified investment vehicle into a focussed media and technology group and is now starting to deliver a material ramp up in sales and move towards significant profitability - something we believe, is far from discounted in its share price. The company now has two divisions: Ram Vision Digital-Out-Of-Home (DOOH) - a seller of advertising on large screens and Train FX a train communications technology provider. On Friday 17th September the option to acquire the 50.1% of TrainFX that RAM did not already own was exercised as the company secured GBP 1.5 million secured loan. Ram owns 100% of Train FX which has a range of communication technology for the rail market. The loan note along with an earlier GBP 1 million equity issue at 4p will provide both two divisions sufficient funds to accelerate to, we expect significant turnover growth and, by 2011, material profitability.
Opportunistically, during the recession, in November 2009 Ram aggressively negotiated at a low price the acquisitions, from the administrator, of two Shopping Mall media companies one as a share purchase agreement and the other out of administration, so forming Ram Vision. Ram Vision has already become a dominant gateway for advertisers into Shopping Malls. Ram's huge advantage was starting with two networks of 'wired' Malls with key contracts and concession agreements already in place. Ram Vision is set to assertively expand sales of media space on large digital screens located in Shopping Malls. This month, 17 contracts were announced with shopping malls across the UK which are expected to deliver revenues of GBP 1.28 million this year implying an existing turnover run rate of GBP 2.1m. Ram Vision clients include a who's who of main Mall Owners including Grosvenor Estates, Land Securities, Hammerson, Henderson, Capital Shopping Centres, Capital & Regional and Frogmore. The four largest Malls with Rams 'iconic' Screens (digital screens sized at more 100 inches) have a combined annual shopper footfall of 100 million: Liverpool 1, Liverpool; Lakeside, Thurrock Eldon Square, Newcastle and Stop Shop, Clapham London.
The development of its complimentary TrainFX (TFX) business will be in two phases which reduces the business and financial risk. TFX will initially concentrate on technology sales to train operators these tend to be large orders and while the timing may be difficult to predict Train FX has already announced it has a pipeline of 7 bids worth GBP 15 million. TFX has Intellectual Property rights and the necessary rail regulator safety approvals and contracts with four main rail operators which creates a high barrier to entry. TFX provides passenger information and passenger surveillance for these train operators. The bulk data is delivered automatically using wireless technology with real time data delivered by GPRS. Ram is focusing on Capital (Technology) Sales. An example is the contract with First Great Western which acquired the Pics system (Passenger Information Communications Security) for 150 carriages and potential for a further carriages to be fitted out on this fleet.
Ram has completed a steep development stage with an accelerated integration phase costing around GBP 2.5 million to date. The results for the half year to June 30th 2010 showed the stretch marks of growth and the loses of GBP 1.4 million on turnover of GBP 685,884 were inflated by one-off charges of GBP 250,000 but we are anticipating that the company will achieve profitability during the second half. The Train FX pipe line is GBP 15 million, so even assuming a less that 50% conversion rates that would give GBP 6 million turnover in calendar 2011. Ram Vision's turnover we estimate at GBP 3 million which gives a group combined turnover of GBP 9 million on which significant profits can be expected and we forecast a pre-tax profit of GBP 1 million. For the following year we would expect that with fixed costs covered, operational gearing would see profits, at least, double.
Trains and Malls are relatively new media sectors so the development strategy has been by necessity pragmatic and opportunistic. A few years ago it was unusual to see large digital screens out of Home (DOOH) but they are now becoming common place. The train technology sales and the income from the established estate of Shopping Malls should swiftly move Ram to profitability. Once profitable Ram will be able to activate existing contracts with four train operators providing DOOH passengers services into London representing millions of journeys and 'years' of dwell time. Ram has the opportunity to become a dominant player in Train Media advertising, a prospect that far from discounted in a 5.5p price which capitalises the company at just GBP 6 million. As the company starts to deliver on its pipeline we will introduce earnings forecasts for 2012 which may well leave our initial price target looking far too conse rvative. But at this stage we initiate our coverage with a stance of buy and set a price target of 9.2p, twelve times forecast 2011 earnings.
Year to Dec
Pre-Tax Profit (GBP 000)
Profit (GBP 000)
Earnings Per Share (p)
Price Earnings Ratio
# Profit on asset sale of previous business
## Excluding exceptionals~ assuming no tax and fully diluted
Source: Company and Growth Equities & Company Research
*RAM is a corporate client of RSCF, which is owned by Rivington Street Holdings (RSH) the ultimate owner of GE&CR. RSCF acts as broker to RAM and its duties may include the placing of securities in the company. Funds managed by another RSH subsidiary own shares in RAM.|
RAM share price data is direct from the London Stock Exchange