After a chat with the Ceo Nick Lee i felt enthused at what is happening at paternoster, The Micro-cap Investment fund has worked well during 2012 from a financial perspective having increased its fund ...value from £500,000 to in excess of £2,000,000 during the 12months with a £3m+ Net asset value we can see that here in the accounts:
The Net asset value increased by +43% during the year due to a savvy in-out Investment in Ldp over a 5 week period which not only netted £2.8m from a initial £400k Investment it also secured 166million Warrants with a 0.15p exercise value. (this means in laymans terms that Prs can re-invest again at 0.15p if there is the value there are leave the warrants to expire, Prs have no cash exposure to Ldp therfore we choose if we want re-entry)
I won't concentrate to much on the finacials and how undervalued Prs is currently refer to this link:
Whilst discussing PRS I expressed to Nick Lee that the news flow was somewhat limited considering the great moves the company have made during 2012 which has stimulated some public blog discussions which had taken various educated guesses at where and what we were planning or working on.
The company's Investment policy is highlighted below:
The Company may make indirect investments via:
• Quoted companies
• Unquoted companies seeking a public quotation
• Candidates for reverse transactions into quoted investment companies
This was in direct relation to Paternosters position in Bison Energy and Bison listing being something that is when and not if ? Going by the company's own Investment strategy, Nick as with all questions was keen not to cross any regulatory lines, However he did confirm that this was the case with Bison Energy.
Its is my opinion from the chat, Bison will list and make the value of PRS position correlate much easy than currently as a private company. Bison Energy has raised $7.6m with Prs taking a $200k announced position with a additional (Increased position), It is my understanding that Bison Energy own a asset in Wisconsin therefore we own a % of this asset. Unlike many company's in Aim who have a W.I of a exploration permit and drilling, PRS have actual production company % Interest. With Bison working to facilitate the fast growing global demand for fraccing sands in the shale industry.
( It is no secret that shale is becoming big big news for a variety of reasons but in whole it has the potential to massively increase O&G production in the United states and across Europe )
It has been a little wait to see the value of the Bison Energy investment but this is not likely to take much longer, relatively imminent news flow throughout Q1 2013 should confirm this with its value to Prs.
Quadrise QFI: We have a proportional Investment at the 7p Placing undisclosed volume of stock but at around 10% of the fund it would equate to £150k (ish) with a 60%+ gain Paternoster have hit the ground running with QFI. PRS as with all there Investments will be pragmatic in realising value, should that be by buying,selling or holding stock which will have a proactive effect on the fund value.
I skated over Asta as I had little to no value on it yet was surprised to hear that we have a would be salvage case on this investment which could potentially return a proportional amount of our investment, I was happy to hear this just as I was with the explanation as to the initiative taken there and its outcome.
Asta along with Prs ceo were working to broker a very Interesting deal which consequentially would have enabled asta to realise its value, '' This is not a dead duck '' so perhaps worth holding the thought.
BRDY as we know is a shell company which we have a significant holding again Further profitable value to PRS should Brdy hand be shown in 2013.
The company in 2011 had a £2m NAV and traded at a significant premium to this at £3m.
The company in 2012 have a £3m NAV and trade at a significant discount at £1.5m
Whats has happened during this time: PRS raised £500k at 0.40p made 5 Investments 4 profitable and 1 not so. PRS increased its fund value from £500k to excess of £2m cash and £1m in its portfolio and as a consequence to the bulk cash position the NAV has been raised and I suggest that this will be increased again in the New Year.
The question on every body's lips is how did we fulfill our policy?
Paternoster have taken a protected position which will mean PRS cash is safeguarded until a time shall arise to use this, Now we know that some of the cash has been used to Increase in Bison Energy. The rest is protected as it holds such value in a austere time and markets to hold cash as much as possible for future opportunities.
PRS seem to be on the cusp of a very exciting time early 2013, Expect news flow to improve and I look forward to getting more detail on the Bison Energy Investment as well as the disclosure on QFI alongl with further detail of PRS strong financials in the End of year accounts in January which again will highlight where we are in all departments.
I expect the stock to realise value in very early 2013 with further added value demonstrated. There is a increased interest in PRS after nearly 1000 hits on the stockopedia article in 4 days
I would like to thank Nick Lee for his professional yet friendly opportunity to chat for 30minutes on what is a busy time of year both in business and in personal life.