SmallCapNews | Micap raises new cash to fund acquisition research

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Micap raises new cash to fund acquisition research

Monday, April 28, 2008

Micap has just raised a new round of cash to fund the due diligence on a possible acquisition target. The move comes after a corporate review at the AIM-quoted developer and producer of micro-encapsulated ingredients, which said it was now considering a number of disposals and acquisitions.

Micap recently decided to focus its technology on the food ingredients market and subsequently launched a review to ensure it was maximising shareholder value. In a statement, it said “a number of opportunities have been identified to dispose of certain parts of the business which no longer fit the focus on food ingredients”.

Elsewhere, its has also identified a number of potential acquisition opportunities which it said could “enhance the business significantly”.

In an effort to fund the due diligence costs connected with one of these acquisitions, the company said it had raised £210,000 by way of an issue for cash of new Loan Stock to the directors and other private shareholders.

In the six months to 30 September 2007 Micap posted losses after tax for continuing operations of £358,000, broadly in line with a loss in the same period of 2006 of £347,000.