Ipso Ventures Share Discussion Threads

[howdlep] 09/2/2012 10:39

I am looking for management to engineer an exit strategy for two of their leading investments. This from the interims:-

Biocroi and IPSol Energy, both raised new funds from third party investors at improved valuations. Here are the Company's current investments:-

Portfolio companies

Axilica

Axilica provides a unique behavioural synthesis tool in the ESL (electronic system level) design automation market. The advanced section of the ESL market has been dominated by small technology vendors and start-ups offering synthesis tools focused on translating programming languages (C, C++) into hardware (FPGA, ASIC).

Axilica has continued to work closely, either directly or through funded European research projects, with leading embedded systems companies including Selex Galileo Ltd, Thales Communications & Security SA and Intracom SA.

Axilica has actively enhanced its product, FalconML, to meet the needs of customers in its selected markets which include military/aerospace and telecoms. These enhancements have been specified by Axilica's customers and represent unique capabilities for the design of complex electronic embedded systems.

In response to customer needs, Axilica is now providing expert services to guide designers in the use of its technology on new embedded platforms. These services include proof of concept designs and customised support for specific embedded platforms.

Axilica is based in Loughborough and other investors include Loughborough University, the Lachesis Fund and the founding academics. IPSO's shareholding is 45%.

Biocroi

Biocroi has designed and developed a range of unique advanced microplates using gel-based buffering systems surrounding the wells which leads to better control of the microplate environment, which in turn improves quality, accuracy and uniformity of results. Biocroi's advanced microplate designs enable users to reduce costs, shorten development times and increase data quality.

Biocroi is working with a variety of partners to develop its products. These include a major pharmaceutical company and a leading supplier of genomics products to the drug discovery and development industry. Prototype products have been developed and volume production is expected to start in 2012.

Biocroi secured significant funding from Kernel Capital and Enterprise Ireland in 2011 and has been able to significantly increase its operations since securing additional funding.

Biocroi is based in Dublin and other investors include Kernel Capital, Enterprise Ireland, certain private investors and the academic founder. IPSO's shareholding is 6%.

Cambridge Meditech

Cambridge Meditech's novel patented wound infection technology gives a visual indication of infection. Wound infection can be detected without unnecessary disruption to a dressing and appropriate intervention can be made immediately. It is anticipated that the products will have multiple applications in various settings.

Our partner, Lantor, is continuing to work on products which incorporate Cambridge Meditech's technology and has had discussions with a number of potential customers.

Cambridge Meditech is based at IPSO's offices and is 100% owned by IPSO.

IPSol Energy

IPSol Energy is a service business providing testing, certification and other services to the solar photovoltaic ("PV") industry.

In 2011 IPSol Energy achieved UKAS accreditation for its solar PV laboratory, making it the first of its kind in the UK. IPSol Energy has carried out work for a range of customers across the UK solar PV industry generating good revenues in its first year of operation. In October 2011 IPSol Energy secured additional funding from investors which has allowed it to expand its testing capability.

2011 saw a huge increase in the UK PV market with the introduction of feed in tariffs for generating solar electricity but the recent changes to these tariffs by the UK Government will change things in the coming year.

IPSol Energy has secured strategic partnerships with a major international testing business and the BSI Group (British Standards Institution) which is anticipated will lead to additional business from outside the UK.

IPSol Energy is based in Nottingham and other shareholders include Loughborough University, certain private investors, management and the academic founder. IPSO's shareholding is 27%.

Medermica

Medermica has so far been unsuccessful in licencing its ph measurement technology to third parties. It has recently taken its patents into the PCT national/regional phase in Europe and US.

Further significant business development is prevented through a lack of funding but the company is endeavouring to identify ways which the business can progress.

Medermica is based at IPSO's offices and is 75% owned by IPSO and 25% by Imperial Innovations plc.

Polyfect Solutions

Polyfect's novel process enables cost savings and quality improvements to a range of plastics through the highly efficient incorporation of functional fillers (which give polymers certain characteristics and properties).

Polyfect is continuing its development work with a major international brewer and has recently commenced a feasibility study with a consumer products multinational. Discussions with other interested parties are also taking place with a view to exploiting Polyfect's technology particularly in the nanotechnology area. Additionally Polyfect has secured Technology Strategy Board funding for a project on improved food packaging.

Additional patent filings are planned in the coming year.

Polyfect is based in Loughborough and other shareholders include Loughborough University, the Lachesis Fund and the academic founders. IPSO's shareholding is 33%.

Therakind

Therakind is a paediatric healthcare company. It takes known adult drugs and creates a version for children which can be protected by EU legislation. The revenue model is to generate royalties on product sales.

Therakind's major success in 2011 was the securing of the first PUMA (Paediatric Use Marketing Authorisation) for its first product, Buccolam. This product has been licenced to Viropharma Inc who have launched the product in the UK to be followed by launches in other European countries. Therakind has received certain upfront payments and will receive royalties on sales of Buccolam.

Therakind is co-developing a pipeline of products with a number of partners. These products are at various stages of development and include one which is in late stage development.

Therakind is based in London and other investors include University College London, private investors, management and the academic founder. IPSO's shareholding is 36%.

Wildknowledge

Wildknowledge creates mobile applications that engage audiences with their heritage (i.e. the environment, wildlife, archaeology and history). Its offering includes data gathering applications; location based content and engaging games.

Wildknowledge has a range of customers including: National Geographic; The British Museum, RSPB, Wildlife Trust and the Heritage Lottery Fund and is in discussions regarding a number of other contracts in this field for 2012. In addition, Wildknowledge has enjoyed success in the e-health market with a range of rapid assessment tools and has also received TSB funding to examine the feasibility of using smartphones to monitor and motivate movement in the elderly at home.

2011 has seen Wildknowledge reduce its reliance on the education market and build revenues through three streams (white labelling existing technology, delivery of native applications/subscriptions and creation of standalone content) in the wider heritage market and new markets.

Wildknowledge is based in Oxford and other investors include Oxford Brookes University, certain private investors and the academic founders. IPSO's shareholding is 9%.

Craig Rochford

Executive Chairman

23 January 2012

[huckle9] 09/2/2012 10:38

Something brewing..

[christianf12] 09/2/2012 10:09

Can't buy online! Cup and handle on chart saying 6p coming easy!

[howdlep] 09/2/2012 10:07

Has this one been missed by the market?

Market cap is @ £1.2m @ 3p

Illiquid and will move with nearly every trade.

No debt.

8 February 2012
Directors and a consultant take shares in lieu of fees. Always a good sign of where the share price is going.

Interims 23 January 2012
Cash and short term investments at 31 October 2011 totalled GBP40,670.
This is sufficient until Q3 2012 even if management do not realise profits from any of their 8 investments, five of which are already revenue generating. The other 3 are I.P based.

Executive Chairman statement:-
"We are delighted to record our first modest net profit in this period. This was principally as a result of increases in the valuation of two portfolio companies, Biocroi and IPSol Energy, during the period. Both companies raised new funds from third party investors at improved valuations. The Company's net profit for the period under review was GBP27,666 (six months to 31 October 2010: loss after tax of GBP230,128).

Investment activities

Financial constraints prevented us from making any new investments during the period. We recorded an increase of GBP88,338 and GBP110,625 in the fair value of our investments in Biocroi and IPSol Energy respectively. This has increased the fair value of our investment portfolio by GBP198,963 to GBP1.896 million (30 April 2011: GBP1.697 million). We have also been working with our portfolio companies to add value and, where appropriate, position them for exit.

Financing

Following the fundraising in July 2011 and the reductions in costs the Board believe that the Company has sufficient funding to take it into the third quarter of 2012 without assuming any revenues from the sales of any investments.

Operating costs

Corporate operating costs were reduced further during the period compared to the same period last year. In addition all directors' fees are being paid in new ordinary shares in IPSO thereby reducing the cash operating costs of the Company.

Cash

Cash and short term investments at 31 October 2011 totalled GBP40,670."

[howdlep] 30/1/2012 10:29

A couple of buys this morning. It will not take much to move this one, as the free float is only 26.1%. This makes this highly illiquid and will ensure any good (or bad) news will have a big impact on the share price



Shareholders who hold more than 3% Amount % Holding
A Hobbs 5,600,000 15.6
M Valentine 4,400,000 12.2
Brewin Nominees (Channel Islands) Limited 4,158,233 11.6
C Rochford 3,600,000 10.0
J Kelly 2,650,000 7.4
P Rodgers 2,058,824 5.7
S Hunt 1,511,765 4.2
Lynchwood Nominees 1,416,647 3.9
Wittington Investments Limited 1,176,470 3.3

[howdlep] 25/1/2012 13:30

An intersting post by OMITC over on 3i, following the Interims:-

No increase in value for Therakind, which has received a milestone payment and is now receiving royalties from Viopharma. This cannot be an oversight they seem to be concealing the true value of Therakind, which either means they are working on an exit and do not want to make it public just yet or they are saving it for the year end results. Still does not make sense, MM still taking stock over the bid, makes me feel there is somthing in the wings.

If you read between the line they have sufficient funding up to Q3 2012 and 5 of their 8 investments are ripening and almost ready to take to the market. Are they planning a listing for Therakind since they now have cashflow from royalty payments and have a pipeline of products one of which is at a late stage.

[howdlep] 25/1/2012 11:24

We have buyers and it is beginning to move up.

Note, that directors are taking shares in lieu of salaries, which is always a good sign of where the share price is going!

[howdlep] 25/1/2012 11:22

I have taken a small position following the recent Interims. NAV 1.896m v market cap of £1.1m at 2.875p. That is obviously common place for this type of stock, but with working capital until Q3, without realising any profits from current investments, as well as having access to new money, IPS are well positioned to realise value for its shareholders.

This will move quickly with one or two buys.



IPSO Ventures
23 January 2012 | 09:05am
StockMarketWire.com - IPSO Ventures posts its first net profit for the six months to the end of October.

This was principally a result of increases in the valuation of two portfolio companies, Biocroi and IPSol Energy, during the period.

Both companies raised new funds from third party investors at improved valuations.

The company's net profit for the period was £27,666 compared with an after-tax loss of £230,128 last time.

Executive chairman Craig Rochford said: "Financial constraints prevented us from making any new investments during the period.

"We recorded an increase of £88,338 and £110,625 in the fair value of our investments in Biocroi and IPSol Energy respectively.

"This has increased the fair value of our investment portfolio by £198,963 to £1.896m (30 April 2011: £1.697m).

"We have also been working with our portfolio companies to add value and, where appropriate, position them for exit.

"Following the fundraising in July 2011 and the reductions in costs the board believe that the company has sufficient funding to take it into the third quarter of 2012 without assuming any revenues from the sales of any investments.

"Corporate operating costs were reduced further during the period compared to the same period last year.

"In addition all directors' fees are being paid in new ordinary shares in IPSO thereby reducing the cash operating costs of the company."

---

Nice 61.8% retracement. Time to buy for the next leg up?

[jormes] 23/1/2012 09:43

Sorry Pugugly but I don't agree with you on the future. While the previous management may have been over optimistic, the chairman states that "Access to additional capital from investors if good investment opportunities present themselves". So clearly they have access to funding if necessary and he goes on to state "The Board is also looking at a number of opportunities which the Board believe have potential to significantly enhance shareholder value". So not withstanding the 8 companies they currently own stakes in, no debt, cash for day to day operations until Q3 and the potential acquisitions IMHO definitely undervalued at 1.35m (3.5p).

[pugugly] 23/1/2012 09:06

Looks like a case history of how not to do university spin offs - Allowing the achedemics to spend too much - apparent lack of initial financial controls,.

New managment will (imo) have a very hard job to recover the situation as very little firepower left. In this market they could have great difficulty in raising new funds with a very dilutive rights offer.

I have learnt the hard way not to value start-ups at the level of new funds raised so I am taking the asset valuation with a pinch of salt.

[parvez] 23/1/2012 07:58

net assets at £1.8m against capitalisation at £1.5m so allthe business potential thrown in for free! This should have a much higher valuation IMHO...

[sportbilly1976] 20/1/2012 14:22

well someone thought it worth almost £15k for that buy earlier....

[string333] 20/1/2012 14:21

certainly looking like this is getting on a few radars now

[huckle9] 20/1/2012 14:14

Getting a tad exciting

[sportbilly1976] 20/1/2012 13:47

delayed buy through of 355k, almost 1% of the shares in issue!!

[sportbilly1976] 20/1/2012 13:34

WINS drop but online bid still over 4p

[sportbilly1976] 20/1/2012 13:29

current spread on 25k is 4.16-4.25 on 1v2 so WINS have a buy order to fill...

[huckle9] 20/1/2012 13:18

Looking very interesting. You only have to see what the share price did back in Sept on one piece of news to understand just how much this can move!

[huckle9] 20/1/2012 13:18

Looking very interesting. You only have to see what the share price did back in Sept on one piece of news to understand just how much this can move!

[matt123d] 20/1/2012 12:55

Looking interesting here

[simonparker5] 20/1/2012 10:07

Huckle9 there does seem to be. Only capped at £1.2m with 38m shares in issue. Small amounts of buying will see this jump quickly IMHO.

[huckle9] 20/1/2012 09:11

Something brewing here?