
Continental Advisors represents small-cap public companies with strong growth potential. CA consults with these companies and helps structure public offerings that are offered directly by the company to institutional investors. We work with these small-cap opportunities to provide institutional investors a direct investment channel to determine if the offering is suitable for their portfolio.
These direct offerings are normally structured as straight equity or convertible debt. The company would also make a commitment to file a registration statement when the offering is closed so that institutional investors would have an exit strategy and the ability to mark the security according to their pricing policies.
Current opportunities
1. Vasseti. (Symbol: "1VS")
Vasseti is a large, diversified conglomerate based in Kuala Lumpur with group business assets valuation of over €1B, and was recently listed on the FSE (Symbol: “1VS”) and plans to be fully reporting on the Entry Standard Level within 2 weeks. The company has 3 main divisions which are telecommunications (“Telco”), information and communication technology (“ICT”) services, and real estate:
1. V TELECOMS BERHAD (“VTEL”)
• Licensed Network Infrastructure Telco
• Owns Cross Border Fibre Optic Network
• Wholesale (B2B) telecommunication facility provider
2. VASSETI DATATECH BERHAD (“VDT”)
• Network Services
• Licensed Internet Service Provider
• Application Service Provider
• Retail (B2C) network service provider
3. MEDINA REAL ESTATE BERHAD (“MRE”)
• Property Development
Vasseti is projecting €75M in revenue as a group in 2012, and all 3 divisions will be cash flowing in 2013 with over €200M in total revenue. The VTEL division is rapidly expanding in the telecom sector and is building fiber optic infrastructure throughout Malaysia. VTEL is the largest non-government fixed-line network telecom provider in Malaysia, and offers more bandwidth than the competitors. VTEL currently owns triple DWDM Network Transmission Trunk infrastructure routes from North to South Peninsular Malaysia, each with a carrying capacity of up to 320Gbps, and VTEL is expected to grow at 50% per year over the next 5 years, with confirmed capacity uptake. VTEL’s business including its nationwide infrastructure is valued in excess of €1bil.
The Vasseti Datatech division provides network connectivity to businesses and residential customers. VDT plans to connect approximately 20,000 commercial and 80,000 residential customers by 2015. It is also the exclusive broadcaster for the Ministry of Health of Malaysia, providing the platform for an exclusive advertising channel for pharmaceutical and health-related companies in Malaysia. Within 15-month period, VDT is well on its way to contribute towards its more than €1bil in forward-PE valuation to Vasseti.
Medina Real Estate owns 192 acres of land in the Klang Valley suburb of Rawang, which also hosts an 18-hole premier golf course and club house. MRE is also in the process of acquiring the Vasseti Building, a fully-leased Class A commercial property located in downtown Kuala Lumpur, and additional development land next to its golf course. These assets have combined gross development value exceeding €1 billion. MRE is focusing on Class A commercial developments and high-end luxury residential projects.
Vasseti (UK) Plc plans to offer €45 million in equity from its approximately €1.5B current business valuation. With the combination of high growth businesses (ICT & Telco) and stable business (real estate), Vasseti offers one of the best opportunities for mid-term equity investment.
Corporate Profile: Vasseti
2. Synergy Pharmaceuticals. (Symbol: "SGYP")
is a fully-reporting biopharmaceutical company based in New York that is focused on the treatment of gastro-intestinal disorders. The company has developed an in-house leading drug candidate called plecanatide (SP-304) for the treatment of chronic constipation and irritable bowel syndrome (IBS). This drug is currently in a Phase IIa clinical trial in the US in chronic constipation patients. Pre-trial results for Synergy's plecanatide have been extremely positive.
plecanatide is similar to linaclotide, the first-in-class drug candidate from Ironwood Pharma (Symbol: "IRWD") for the same indication, however plecanatide mimics the actual human hormone that regulates the intestinal tract while linaclotide is related to an E.coli enterotoxin called ST peptide in order to treat constipation. Ironwood went public in February as the largest biotech IPO in history, based almost entirely on clinical results for linaclotide which is presently in Phase III trials, and now has a fully-diluted market cap of $1.71 billion.
Synergy has raised over $22 million in capital over the last two years, and is positioning SP-304 to be "best-in-class" in an emerging market that totals millions of patients worldwide that offers the potential for a blockbuster drug (> $1 billion annual sales). The Phase IIa results for Plecanatide will be presented on Monday, October 18, 2010 (Poster Number P762; 10:30 AM to 4:00 PM) at the American College of Gastroenterology Annual Scientific meeting in San Antonio, Texas.
Corporate Profile: Synergy Pharmaceuticals
Phase IIA Data on Plecanatide
Synergy Pharma - Investors Conference call
10/07/2010
Synergy Pharma - Conference call on Phase IIA Results
10/26/2010