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Real-Time news about Vivomedica (London Stock Exchange): 0 recent articles
|rupert096: From my inbox today:
Groucho Marx once said that he 'would not join any club that would have someone like me for a member'. It's a sentiment some companies might wish they had heeded before they joined the London Stock Exchange's club for small companies, AIM.
Now, members of the AIM 'club' are heading out of the door. The number of AIM-listed companies has fallen from 1694 at the start of 2008 to 1514 today. That's a consequence not only of companies exiting the market, but also the reluctance of any new companies to join.
The City hates this. It's a valuable source of advisory fees drying up in front of its eyes. But private investors should cheer. I'll explain why in a moment. But first, let's find out what has gone wrong.
Here's what's really gone wrong with AIM
Many times people have said to me 'the trouble with AIM is that there is too much rubbish on the market'. In other words, there are too many low quality companies with little realistic chance of rewarding investors.
I don't see it that way. You just can't generalize like that because there are all sorts of companies on the market. There are companies that have been around for years and those that have little trading history; companies that need money to pursue speculative mining projects or find medical cures; companies that want to pursue an acquisition-based strategy, and companies that are happy to just plod on. But for most, the common denominator is that in order to pursue their strategy they need to raise equity finance not only when they first come to AIM but also at intervals thereafter.
This requires two things. It requires a real commitment on behalf of investors to properly understand these companies and allow for the fact that the corporate journey of small companies is never smooth. Secondly, it requires that when new shares are issued, the price strikes the proper balance between risk and reward.
Let me deal with the first point. It's all too apparent from my regular conversations with small company executives that their City investors make only the most cursory attempt to understand their business. They are all too ready to abandon ship at the first sign of trouble.
The bigger problem, though, is the unrealistic valuations put on AIM shares in the first place...
I met one savvy fund manager who says that he never buys into new issues because they rarely deliver against the forecasts made at the time. Once a company admits it is falling short of expectations, a vicious circle can quickly develop. The share price falls, it becomes impossible for the company to raise further funds, analysts conclude that it is not worthwhile to write research notes and everybody just wants out. Of course, the share price plummets.
Why the AIM exodus is good for small cap investors
Here's what needs to happen. All parties need to realize that the forecasts need to be set with extreme caution. This caution then needs to be reflected in the valuation put on companies when they first come to AIM. Fund managers need to drive a much harder bargain, and the companies and their advisers need to accept a lower price for newly issued shares than they would like.
To put it another way, there is a price for everything. The pricing of AIM shares, especially when they first come to market, has been too high. A painful adjustment must be made and it is the companies themselves that are taking the lead...
Only yesterday Bateman Engineering (ticker: BATE) decided to quit AIM. It blamed its low share price, its inability to raise equity capital, the low turnover of its shares, and the costs and responsibilities of a quotation on London stock market.
Institutional shareholders are now getting annoyed. They are unhappy both at the prospect of companies going back into the private sector at a low price and at the difficulty of trading shares in a private entity. But they only have themselves to blame for failing to give these companies proper attention and support in the first place.
For private investors, the good news is that the market is becoming cheaper. The hype that has at times surrounded AIM is gone and as disillusion sets in, smart investors can pick up bargain shares. The club is becoming more select and as we all know, the most exclusive clubs are always the best.
The hype indicator has stopped flashing. This is a great time to be buying good quality shares while they're cheap.|
|oneillshaun: Sorry to say to guys but that is it I am done with VVM it is going nowhere fast the money raised will be burnt in a short time I am not buying another share in VVM to many other good targets out there that i can make money on, I am not selling I will hold, wish you luck.
RNS Number : 9735I
26 November 2008
VivoMedica plc (the 'Company')
26 November 2008
Notice of General Meeting
The Company announces that it has today posted a circular to shareholders setting out various resolutions to be passed at the Company's General Meeting to be held on 18 December 2008. These resolutions include a proposed share capital reorganisation, which will enable a Proposed Placing of securities in order to fund the continued development of the business.
The circular is available for download at the Company's website: www.vivomedica.com
The full text of the Chairman's letter contained within the circular is set out below. Definitions in this announcement shall bear the same meaning as those in the circular to Shareholders.
To the holders of Ordinary Shares and, for information only, to holders of options over Ordinary Shares
Proposed Share Capital Reorganisation and Notice of General Meeting
VivoMedica has today announced a proposal to reorganise the Company's share capital by way of the Share Capital Reorganisation conditional upon Shareholder approval to be sought at a General Meeting, details of which are set out below.
The Directors stated in the Company's interim results for the six months to 30 June 2008 that in order to continue the Group's progress to date further funds would be required. The Directors consider that it would be in the best interests of the Company to seek to raise such new funds through the Proposed Placing. The Companies Act prohibits the Company from issuing Ordinary Shares at a discount to their nominal value and it will, therefore, be necessary to reorganise the share capital of the Company to allow the Proposed Placing to take place. As such, the Proposed Placing is conditional upon the passing of the Resolutions in relation to the Share Capital Reorganisation.
Authority for the Share Capital Reorganisation will be sought from Shareholders at a General Meeting convened for 11.00 am on 18 December 2008. Further details of the Share Capital Reorganisation are set out below and details of the General Meeting are set out in the Notice of General Meeting at the end of this document.
The purpose of this document is to give the background to and reasons for the Proposed Placing, the Share Capital Reorganisation, to explain why your Board considers that the Proposal is in the best interests of the Company and its Shareholders as a whole and to recommend that you vote in favour of the Resolutions at the forthcoming General Meeting.
2. The Placing
At the Annual General Meeting, the Shareholders passed certain resolutions which, amongst other matters, authorised the Company to issue shares on a non-pre-emptive basis in connection with a financing up to an aggregate nominal amount of £4,500,000.
The Board believes that it remains in the best interests of the Company to raise further finance by way of the Proposed Placing. Subject to the passing of the Resolutions, the decision as to whether or not to proceed with the Proposed Placing will be determined by the Board at such time as the Board believes it appropriate to do so, having regard to market conditions.
New Ordinary Shares issued pursuant to the Proposed Placing will, if issued, rank in full for all dividends and otherwise pari passu with the then existing New Ordinary Shares.
The Board will seek the advice of its Nominated Adviser and Broker in connection with the Proposed Placing and as to which potential investors New Ordinary Shares may be offered as part of the Proposed Placing.
The net proceeds of the Proposed Placing will be used to continue to fund the development of our two key technologies PathscoreTM and DrugPrint® and for other general working capital purposes.
3. Background to and reasons for the Share Capital Reorganisation
At the time of the Company's interim results for the six months to 30 June 2008, the Directors reported on the significant progress the Company had made towards delivering high value solutions to the pharmaceutical industry and in realising the commercial value of the Company's exclusive worldwide technology licences. We also stated that the nature of the Group's operations means that VivoMedica's future income is dependent on securing collaboration agreements and/or sales/sub-licensing contracts within the markets it currently operates in, and on developing new applications for the PathscoreTM and DrugPrint® products. As a result there can be a considerable and unpredictable variation in the timing and amount of cash inflows generated from planned product launches.
We therefore announced that in order to continue the Group's progress to date, further funds would be required. The Directors therefore intend to seek to raise new funds via the Proposed Placing.
4. Details of the Share Capital Reorganisation
The closing mid-market price of an Existing Ordinary Share was 0.7p on 25 November 2008, being the last dealing date prior to the publication of this document. The Company's share price is therefore below the nominal value of an Ordinary Share of 2 pence each. In effect this prohibits the Company from raising any further equity capital as, in order to comply with the Companies Act, any further shares issued would have to be issued at a price at or above the nominal value. Consequently, the Board proposes to sub-divide the shares as detailed below and reduce the nominal value of each Existing Ordinary Share to 0.1 pence per share.
Resolution 1 to be proposed at the General Meeting and as set out at the end of this document, proposes that each Existing Ordinary Share of 2 pence each in nominal value be sub-divided into one New Ordinary Share of 0.1 pence each in nominal value and one new Deferred Share of 1.9 pence each in nominal value. The New Ordinary Shares of 0.1 pence each so created will continue to carry the same rights as attach to the Existing Ordinary Shares of 2 pence each (save for the reduction in nominal value).
Following the Share Capital Reorganisation, the Company's authorised share capital will remain at £14,000,000 comprising 700,000,000 New Ordinary Shares and 700,000,000 Deferred Shares and the Company's issued share capital will comprise 200,555,662 New Ordinary Shares and 200,555,662 Deferred Shares.
5. Share Rights
The New Ordinary Shares arising on completion of the Share Capital Reorganisation will have the same rights as the Existing Ordinary Shares, including without limitation, the same voting, dividend and other rights.
The Deferred Shares will be transferable only with the consent of the Company and will not be admitted to trading on any market or exchange. The Deferred Shares will not confer on their holders any right to receive notice of any general meeting of the Company nor any right to attend, speak or vote at any such meeting. The Deferred Shares will not entitle their holders to receive any dividend or other distribution and shall on a return of assets in a winding up of the Company entitle the holders only to the repayment of the amounts paid up on such shares after the amount paid to holders of the New Ordinary Shares exceeds £700,000,000 per New Ordinary Share. The Deferred Shares will also be incapable of transfer and no share certificates will be issued in respect of them.
The Directors consider that the Deferred Shares to be of no economic value. The Deferred Shares will, subject to Shareholder approval pursuant to Resolution 2 to be proposed at the General Meeting, be re-purchased by the Company, pursuant to a contract for purchase approved in accordance with Resolution 1, for 1 pence in aggregate for all such shares and following such repurchase will be cancelled. The repurchase of the Deferred Shares will be financed out of the proceeds of the issue of 1 Existing Ordinary Share by the Company to be subscribed by an existing shareholder at a subscription price equal to the nominal value of such share.
6. General Meeting
A notice convening the General Meeting to be held at the offices of Buchanan Communications, 45 Moorfields, London EC2Y 9AE at 11.00 am on 18 December 2008 is set out at the end of this document. At the General Meeting, the following Resolutions will be proposed:
(1) a special resolution to:
(A) sub-divide each Existing Ordinary Share into one New Ordinary Share with a nominal value of 0.1 pence and one Deferred Share with a nominal value of 1.9 pence; and
(B) amend the Articles to reflect the creation of the Deferred Shares; and
(2) conditional on passing Resolution 1, an ordinary resolution to authorise the Directors to repurchase the Deferred Shares pursuant to a contract for purchase.
7. Action to be taken
A Form of Proxy for use by Shareholders in connection with the General Meeting accompanies this document. Whether or not you intend to be present at the General Meeting, you are requested to complete and sign the Form of Proxy and return it to the Company's Registrars, Capita Registrars, Proxies, The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU, so as to be received no later than 48 hours before the commencement of the General Meeting.
Unless the Form of Proxy is received by the date and time mentioned in the instructions, it will be invalid. The completion and return of the Form of Proxy will not prevent you from attending the General Meeting and voting in person, if you so wish.
The Directors consider the Resolutions to be in the best interests of the Company and therefore, unanimously recommend Shareholders to vote in favour of the Resolutions at the General Meeting as they intend to do in respect of their own beneficial holdings of 4,322,857 Ordinary Shares representing 2.16 per cent. of the issued share capital at the date of this document. Funds managed by Merlin Biosciences Limited have undertaken to vote in favour of the Resolutions in respect of their shareholdings which amount to 100,257,775 Ordinary Shares which represent approximately 49.99 per cent. of the issued share capital at the date of this document.
Sir Christopher Evans
Buchanan Communications 020 7466 5000
Tim Anderson / Catherine Breen
Brewin Dolphin Investment Banking (NOMAD) 0845 270 8600
Mark Brady / Alison Barrow
This information is provided by RNS
The company news service from the London Stock Exchange|
|oneillshaun: Morning all 8.40am in Costa Rica hot as hell today and no rain.
Digger I agree 100% with your sum of Peter i really feel he will give us news and deals, i am now sitting on average of 9p still a long way of the current share price but i will continue to add as and when i have more dirty to wash.|
|shortlegs2: PC I think that to consolidate from 200mil shares to 20 mil would not attract institutional investors! they would normally look to hold volumes of 50 mil upwards, the alternative may be a trading partner who gets a large chunk of shares in exchange for investment, these would be new shares and then the share price may reposition itself, and value added to the company.
|rupert096: The £1.5m Life Saver
Monday, 17th December 2007
Medical science has come on leaps & bounds...
And it's about to get more efficient...
Watch this company, it really is superb...
Since I moved to Oxford five years ago, my knowledge of medicine has improved by leaps and bounds. Admittedly it started from a low level. But having taken members of my family to local hospitals for various ailments; having met some of the many doctors and specialists who live in this area; and having visited a few of the small companies that are trying to commercialise the research work of the University's department of medicine, I am much the wiser.
And I am in awe of the absolutely great work that is done by this profession. Truly medical science is a wonderful thing, and it is only a pity that just as it comes up with a cure for one disease we seem to manage to invent another.
But a necessary evil of the pharmaceutical is animal testing. Nobody exactly enjoys it, but I have yet to meet anyone so devoid of hypocrisy that they would actually spurn the medicines that are the product of it. But one man who would like to see less animal testing and is actually doing something about it is Peter Leyland.
Peter is chief executive of vivoMedica, a tiny AIM-listed company with a share price of 0.75p. That this company is valued at a mere £1.5m is no doubt related to the fact that it has never made a profit. And yet the expertise that is contained within vivoMedica is surely worth more than this. And the potential value of what it could deliver to the human race, never mind its shareholders, is worth far more than can ever be quantified in crude financial terms.
The more I learn about the pharmaceutical industry the more inefficient it seems. Billions of dollars are wasted through developing drugs that never make it to market, and if that is bad enough even worse is the fact that those that do make it can have all sorts of unwelcome side effects - of which the least welcome of all is death. Naturally enough the pharmaceutical industry will listen to anyone who claims to be able to strip some of the waste out of the drug development process, and today it is showing a very keen interest in vivoMedica.
vivoMedica has two principle technology platforms, drugPRINT and pathSCORE. Both of these use the work of QinetiQ, now a listed company but originally the repository of all the research work done by the UK's defence industry since the Boer War. vivoMedica has the right to use QinetiQ's work in the field of healthcare and its particular value is in the detailed analysis of wave forms and shapes, conducted at very high speed.
In the defence environment this is used to identify objects against a difficult background for instance, picking out a face in a crowd, or mapping the sea-bed. What vivoMedica is using this for are two products, one of which can make the drug discovery process more efficient, and the second that can improve the diagnosis of cancer.
Oops they did it again
Cisapride, Terfenadine, and Astemizole are three drugs that, having made it all the way through the many stages of clinical trials and onto the market have subsequently been withdrawn because they cause irregular heartbeats. vivoMedica's drugPRINT can test drug compounds at an early stage for their impact upon the heart.
Here is how it works. Live heart cells are placed in a type of dish called a microelectrode array. Here their electrical activity is measured via sixty eight electrodes that each takes no fewer that ten thousand measurements per second (this is where QinetiQ's expertise comes in). The results, based on thirty-nine criteria, are then computed and displayed by a software programme. This is done first with the heart cells in their natural state, and again when the heart cells have been exposed to a particular drug compound. A comparison of the two outcomes will show whether the compound affects the normal rhythmic activity of heart cells.
Drug companies are very interested in this... and so are the handful of companies that are now growing human stem cells and want to put them to some purpose. vivoMedica is now hoping to strike some collaborative deals with some of these.
Its other main product, pathSCORE addresses another problem, this time the unsatisfactory diagnosis of tissue taken from cancer patients. Such analysis is performed by pathologists, who look at tissue samples through high-powered microscopes and draw conclusions.
pathSCORE will take a digital image from the microscope, analyse it in the finest detail and give a more accurate reading of the results than can be made by the human eye. It is generally accepted that virtual microscopy, whereby tissue samples will simply be placed in a machine and automatically analysed is the way of the future.
So what vivoMedica has come up with is essentially a tool-box that helps pathologists to analyse samples more accurately. This will enable them, amongst other things, to distinguish between different stages of cancer and recommend a more appropriate treatment. Once again vivoMedica's product is based on its ability, acquired via its relationship with QinetiQ, to analyse digital signals/images in the finest detail and to provide a statistical summary of the result. This is of interest to the makers of digital microscopes, who would like to be able to offer an analysis of the images, and also to research institutes such as The Centre for Cancer Research, which has a library of images gathered over the years from thousands of patients.
Whether vivMedica will ever make its shareholders rich, I don't know, although Peter Leyland believes that a turning point is near. But I do know that it is doing immensely valuable work.
Until next time,
for The Penny Sleuth|
|oneillshaun: PC it might help the share price.|
|oneillshaun: share price at an all time ever low, fund raising need to keep us running and move forward, oh 2008 is going to be a bloody hard year for VVM.
Okay who fancies a bet???
50 that VVM is not trading this time next year?|
|pc4900074200: On checking web site pleased to find that it has been updated with the latest trading release for DrugPrint and Pathscore also the share price is dated 09/10/2007.
We just need a new logo to complete change to VivoMedica Plc.
|oneillshaun: does anyone else feel the same way as i do when they look at the share price, i almost puke everytime just thinking about the bloody huge loss that i have. I could have shoved the money into a load of ISAs and had 5% return year on year with no risk.|
Vivomedica share price data is direct from the London Stock Exchange