Each month we trawl through hundreds of RNS statements from AIM companies. In this column we highlight an exceptional company announcement, particularly where we feel the market may not have taken full account of recent news.

In the buoyant autumn markets that we have been enjoying of late, there seems to be no shortage of interesting RNS’s to consider. For example we were interested to see that there were a number of share purchases by directors of Elektron (EKT) in recent weeks even though the shares have risen almost five fold in 2010.

Another interesting director share purchase was announced on 3 November. Grahame Falconer, CEO of Densitron (DSN) purchased 100,000 shares at 8.75 pence. Densitron is in the processing of disposing of non-core assets to focus on its main displays business. The director’s purchase coming on top of some positive interim results in September is encouraging.

However, the main company which we are focussing in this Snippet article is Crimson Tide (TIDE), a mobile data solutions provider. Aimzine first featured this AIM minnow (market cap £4.8 million) in September 2009. When we spoke to Executive Chairman, Barrie Whipp, at that time he explained that lack of available capital was restricting the Company’s growth. Indeed, Barrie made the same point in his statement that accompanied the half-yearly report which was released at the end of September 2010.

However, on 14 October Crimson Tide announced that they had raised £550,000 in a placing and also that the wife of one of Tide’s non-executive Directors took £53,000 worth of shares in the placing.

In the placing announcement, Barrie Whipp commented: ‘In our recent interim results I stated that finding suitable finance remained our greatest challenge and I am delighted that we have managed to find a solution that offers such an excellent opportunity for both existing and new shareholders. The additional resources will enable us to cater for our strong pipeline of new subscribers and accelerate our growth plans.’

We look forward to monitoring progress over the next year or two at Tide. We believe that there is still considerable growth to come from mobile solutions and this Company have already developed and sold applications for several important areas such as nursing, home care and facilities management.

As always, the purpose of this Snippet column is to highlight an interesting situation worthy of further research. 

strong pipeline of new subscribers

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