Batm Advanced Communicat... Share Discussion Threads

[james dean] 25/6/2019 14:58

Just placed order with broker - fingers crossed, although being top heavy I won't be disappointed.

.

[fse] 25/6/2019 14:18

Agree with bamboo2 that so has a tendency to retreat to placement price so smaller investors have a way in. Took advantage and topped up with trading shares.

[bamboo2] 25/6/2019 09:07

Just bought back the shares I sold first thing.

[mr hangman] 25/6/2019 09:05

I notice our BOD did not take part in the placing

[zipstuck] 25/6/2019 08:57

7.6% is not a massive dilution.

[nellyb] 25/6/2019 08:48

it would have been nice and also fair if small shareholders could have been included.

[car1pet] 25/6/2019 08:43

I agree with gbenson. Major shareholders benefit.

[reeltime] 25/6/2019 08:37

Placing and Subscription successfully completed.....

BATM Advanced Communications Ld Results of Placing and Subscription
25/06/2019 8:28am

RNS Number : 3230D

BATM Advanced Communications Ld

25 June 2019

BATM Advanced Communications Limited

("BATM" or the "Company" or the "Group")

Results of Placing and Subscription

BATM raises US$18 million from existing and new investors

BATM (LSE: BVC), a leading provider of real-time technologies for networking solutions and medical laboratory systems, is pleased to announce the successful completion of the Placing and Subscription (the "Fundraise") announced on 24 June 2019 (the "Placing and Subscription Announcement") to raise US$18 million.

Shore Capital Stockbrokers Ltd ("Shore Capital") acted as sole bookrunner in connection with the Placing. Rosario Capital Ltd and its subsidiaries ("Rosario") acted as the Company's adviser solely in relation to the Subscription by certain institutional and other investors based in Israel.

Highlights

-- The Company has raised, in aggregate, gross proceeds of US$18 million at a price of 42.5 pence per New Ordinary Share (the "Issue Price").

-- Pursuant to the Fundraise, a total of 33,283,254 New Ordinary Shares will be issued, representing 7.6 per cent. of the Company's enlarged share capital.

-- The Issue Price represents a discount of 5.6 per cent. to the mid-market closing price of the Company's Ordinary Shares on the London Stock Exchange on 24 June 2019, being the last practicable dealing day prior to the Placing and Subscription Announcement.

-- The net proceeds of the Fundraise are expected to be utilised as follows:

o Networking & Cyber division (approx. 90% of funds raised):

-- potential acquisition opportunities;

-- acceleration of current network function virtualisation ("NFV") development projects with Arm;

-- new product and use case development for 5G (MEC);

-- completion of development of CyberGuard product for NFV use cases;

-- accelerating proof-of-concepts and working capital for existing NFV and cyber products; and

-- marketing and sales initiatives.

o Bio-Medical division (approx. 10% of funds raised):

-- acceleration of current development, deployment and certifications (including patents) in molecular biology diagnostics; and

-- acceleration of agri-waste and pharma-waste treatment installations.

Application has been made to the London Stock Exchange for the New Ordinary Shares to be admitted to trading on the premium segment of the Main Market. It is expected that Admission will become effective at 8.00 a.m. on 1 July 2019. The New Ordinary Shares shall rank pari passu with the existing Ordinary Shares in the Company.

Total Voting Rights

Following Admission of the 33,283,254 New Ordinary Shares, the Company's issued share capital will consist of 437,129,074 Ordinary Shares with voting rights and that figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

Dr Zvi Marom, CEO of BATM, said: "We are delighted to have raised $18 million through the successful completion of this fundraising. We thank our existing investors for their support and welcome our new shareholders. This is an exciting time for BATM with great progress being made across our business units, and particularly with our NFV activities and molecular diagnostics. We look forward to utilising these funds to accelerate our growth and to delivering value for our shareholders."

[bamboo2] 25/6/2019 08:15

gb, agree. Sp almost always hits placing price before making progress.

[gbenson1] 25/6/2019 00:04

This doesn't have a nice smell, the recent selling was someone in the know in preparation for this placing, I don't doubt the Sp will recover and then some, however we'll test 42.5p in the next few days.

[fse] 24/6/2019 22:24

probably not... I hold a lot of these and as I said have not heard anything. I imagine they are already placed but I suppose we will find out soon enough.

[nellyb] 24/6/2019 19:48

I presume joe average will not be able to participate in the placing.

[fse] 24/6/2019 19:40

Did not know about this but it appears to have been planned for a while now. Not sure how the market will take it. I would not read much into the time of the announcement as its been made at the start of the week.
No one likes to see shareholder dilution unless its appropriate. I have been saying for ages now that NFVTime is a serious piece of kit and obviously the likes of ARM and NXP think so as well.
The fund raiser appears to be targeted at this application.
What it does indicate is that BATM Telco are gaining real traction with this unique solution.

"Dr Zvi Marom, CEO of BATM, said: "Over the past three years, we have been made investments in our businesses that have enabled us to produce differentiated and best-in-class products that are now entering the commercialisation phase. In our Networking & Cyber division, we established a partnership with Arm to develop a network function virtualisation ("NFV") ecosystem based on their Neoverse architecture - becoming the only worldwide software vendor to provide NFV functionality to Arm and Intel platforms. The net proceeds of the Proposed Fundraise are expected to be utilised primarily to advance our NFV. Specifically, one of the main use of funds is to accelerate current NFV development projects with Arm as well as new product and use case development for 5G networks, which we believe is a key growth area for BATM in the short to medium term."

[spekky] 24/6/2019 19:02

Two questions regarding that rns......

Why was that after trading hours?
Have we not been down the TASE route before ? (I thought we had)

Any opinions anybody?

[car1pet] 21/6/2019 21:18

FSE ive held these shares for many years and was persuaded to hold by one of the major shareholders. Eventually it perked up a year ago but is levelling off. I'm in no doubt that zvi is a respected man but he's not the right man to drive the business. As a major shareholder he needs to take a back seat and appoint a business manager to drive the business. by all means keep some R&D but set targets to realise the current products potential. It's a small company which could grow rapidly with the right MD. All my own opinion.

[fse] 21/6/2019 20:02

car1pet... FWIW I would see 65p as a reasonable medium term target on what is currently on the table. The company is undervalued and if you look back I am not always bullish on the share price As several tuned in investors are realising this is about the value of the company IP bolstered by the fact that they do actually make money and are able to drive all this forwards from internal revenue.
When they talk about a platform to deliver substantive growth this encompasses the cost and expertise required to form this platform which is funded and in turn opens the door to revenue from technology which is only starting to be adopted.
BATM Telco have significantly revenue wise increased their business with UCPE offerings, and that is kit that is in the market place being sold.
NFVTime looks like its a major breakthrough and is placing the company for some pretty interesting alliances.

Zvi Marom is a lonstanding well known member of the Israeli business community with many very relevant contacts. He is a good top man for the job.
As far as being a good spokesman for the company and doing excellent interviews well thats something that could be improved on.

[car1pet] 21/6/2019 19:17

I look forward to the "substantive growth"

[fse] 21/6/2019 18:51

OVERVIEW
BATM stays bullish on 2019 growth

14:27 21 Jun 2019
The group said it had entered 2019 with a “substantially higher order book” compared to the same period in the prior year

In its 2018 results, BATM said it expected its 2019 earnings to be ahead of market expectations
• Divisional spread across telecoms, cybersecurity, and bio-medical sectors

• Exposure to “growth trends” in virtual network management and medical equipment

• Expects 2019 earnings to be ahead of market expectations



What BATM Advanced Communications does

BATM Advanced Communications Ltd (LON:BVC) provides solutions for networking and cyber security as well as for bio-medical and bio-waste treatment through its two operating divisions.

The networking and cyber division offers telecoms and network solutions, focusing on advanced software and cybersecurity, to tier 1 businesses and governments worldwide.

The bio-medical division focuses on the development and provision of diagnostic lab equipment as well as products to treat biological waste products from the medical, agricultural, and pharmaceutical sectors.

The group is listed on the main board of the London Stock Exchange and is headquartered in Israel with offices in North America, Europe, and the Far East.

What it owns

In the networking and cyber division, BATM owns three entities;

• Telco Systems – focuses on high-performance telecom networks and communications systems

• NGsoft – develops and maintains digital systems such as websites and mobile apps as well as expertise on cloud solutions and other technology areas

• CELARE – The cyber arm of BATM which focuses on digital security and threat detection

Inflection points

• In June, BATM said it had developed a new technology under its long-standing partnership with NXP Semiconductors which will enable a significant increase in computer network traffic without requiring an increase in computing power

• The company entered a strategic technology partnership with Clavister, a cybersecurity specialist, in early June. Under the agreement BATM’s software development and design business Telco Systems will work with Clavister to run a virtualised platform

• In March, BATM predicted that its earnings (EBITDA) and revenue growth for 2019 would be “ahead of market expectations”

CEO Interview – Zvi Marom



Blue Sky

In its outlook statement for 2019, the company said it had entered the year with a “substantially higher order book” compared to the same period in the prior year, providing it with a platform to deliver “substantive growth”.

BATM’s chief executive, Dr Zvi Marom, added that the diagnostic and eco-med units within the firm’s bio-med segment had taken “large steps” forward and growth was also expected in 2019.

Meanwhile, Marom said the group’s cyber division was expected to secure more contract wins in the current year, having won around US$13.5mln worth of deals in 2018.

What the broker says

Commenting on BATM’s 2018 results and outlook for 2019, analysts at ‘house’ broker Shore Capital said the prospect for further upgrades over the year was “high” on the back of continuing strong news flow and a building flow of contract orders.

“BATM retains substantial financial resources with net cash and investments of US$31.7mln currently and we expect this to continue to be used principally to fund organic development into the group’s intellectual property base”, the broker added.

With shares trading around 45.2p as of 21 June, BATM carries a market cap of £182.3mln.

[fse] 21/6/2019 17:02

Looks to me as if there is a persistent seller aka Mr 10,000 best guess its one of the institutions selling a few and I imagine we will get a notification at some point.
This is all happening during a period of low volumes which tends to exaggerate the position and heighten rancour amongst investors aka "a shake out".

[gbenson1] 19/6/2019 11:55

I thought that there was a seller about, but beginning to think for the first time in decades that BATM shares are a victim of short selling!!

[car1pet] 19/6/2019 11:40

I accept that price lifted and got to 50p. But I'm a long term holder (several years) and seen countless alliances POCs and new products, but if you look at the company over the long term the business management has been appalling. I've met Zvi at AGMs and said things need to improve and he assured me things will improve. So is this it a price of 45p? I've been saying it for years I believe it has the potential but it needs someone to take over the reins and give the company a massive kick to get it on a commercial footing. At the moment it behaves like a research lab. Zvi needs to go. All IMO DYOR

[mr hangman] 18/6/2019 09:02

I'm certainly not selling, the downside is not much, but the upside could be 100's%
i agree with FSE,the real value is in the IP, certainly one to tuck away & not worry about dips

[reeltime] 18/6/2019 07:58

Video interview regards yesterdays announcement......

BATM develops technology to significant increase computer network traffic.

[hitsha1] 18/6/2019 05:46

Should start moving up now