3D Diagnostic Imaging (LON:3DD) (3DD 8.5p/£14.49m)
3D Diagnostics which owns the protected rights to a technology platform with a number of significant potential commercial products, announced its move from PLUS and its admission to AIM and a placing to raise £2.71m at 6p per share. The Company, which is currently focused on the production of medical equipment for the detection of dental caries/decay (through its CarieScan Ltd business), has an agreement in place with Patterson Dental, which is thought to be the largest supplier of dental products in North America, to distribute a handheld Carie detection product for use by dental practitioners across the US and Canada. 3D is in the process of putting together a 15 strong sales force based in the US to facilitate sales, though Patterson themselves have committed significant effort to the relationship by covering a good deal of the marketing costs.
CarieScan’s product retails at approximately $4,000 of which $1,850 goes to the Company (at a cost of $470 per unit). Further revenue is to be generated by disposable sensor attachments, which CarieScan sells for $1.22 per unit and which cost approximately $0.87 to produce.
The sophisticated and reliable qualities of the product (which has 93 per cent sensitivity and specificity levels), together with the Company’s desire to establish itself in the lucrative North American market before moving on other territories, suggest great opportunities for 3D Diagnostics. One to get your teeth into.
African Eagle (AFE 6.38p/£24.53m)
We last wrote about AFE in the Small Cap Wrap of 12th October 2010 (price then 5.38p) when they gave a resource update on their Dutwa project. In order to focus on that project, a nickel deposit in Tanzania, the Company has now announced that it has sold its non-core uranium division to Jacana Resources Ltd for A$1million in shares and cash. AFE will transfer all uranium holdings from its Lunga project in Zambia to the private Australian company in exchange for A$200,000 in shares – 20 per cent of Jacana’s share capital – on signing the agreement. It will subsequently receive a further A$300,000 in shares and A$500,000 in cash or shares when Jacana IPOs, which is planned for 2011. The news has been well received in the London market and the shares moved up a little in response.
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