WARNING, not for widows and orphans.

SHAREPRICE currently 5.62p mid price.

COMPANY PROFILE

FeONIC plc consists of a small innovative team of people creating niche products for the consumer markets that incorporate their special smart material technology. They have branded the technology FeONIC technology and their business objective is to be a new Intel or a new Dolby because of the unique properties the technology has that will enable it to be a hidden active component in many different types of consumer products.

FeONIC plc, through its wholly owned subsidiary Newlands Technology Limited, develops technology using smart magnetoelastic materials. These materials respond to a magnetic field, expanding or contracting with the application or removal of a field. This physical change in the solid material can be used to move large loads, and be managed to produce precisely controlled movement, create sound or ultrasound, to mask noise, to cancel mechanical vibrations or even sense pressure.

The Company has supplied products to a range of market sectors but is focusing at present on the innovation and exploitation of Intellectual Property (IP) developed through extensive in-house R & D in response to the market needs of its partners in the Consumer Audio, Ambient Audio and Household Product sectors.

THE TECHNOLOGY IN MORE DETAIL

HISTORY OF GMM TECHNOLOGY

What Are Smart Materials?

The term smart materials refers to a class of materials that are highly responsive and have the inherent capability to sense and react according to changes in the environment. These materials have been developed to work more smartly and efficiently than their predecessors.

Today's smart materials largely respond in one of two ways - either electrostrictively or magnetostrictively. These terms basically identify how they are told to move, either electrically or magnetically.

Early smart material applications started with magnetostrictive technologies. This involved the use of nickel as a sonar source during World War I to find German U-boats by Allied forces. Although limited by its power density and strain capabilities, nickel is still used today in cleaning baths at ultrasonic (above the range of human hearing) frequencies.

Piezoceramics, one of the main types of smart materials, were initially discovered by Pierre and Jacques Curie. They identified the electric response made when crystals of sugar and Rochelle salt were subjected to mechanical stress. This development in 1880 began what is now a $600 million industry. Their initial success, and the corresponding reverse effect of producing strain by applying an electric field, led the way to the first serious applications of piezoceramic materials during World War I. In addition to these nickel sonar transducers, work began in France on the development of an ultrasonic submarine detector that would emit a high frequency "chirp" and measure its depth by timing the return echo. The success of sonar then stimulated intense research and development into a variety of piezoelectric (ceramic) formulations and shapes.

However, piezoceramic materials do have limitations - namely fatigue and aging. Therefore, in the 1960's the US Naval Ordnance Laboratory began work on new materials that would be able to send out stronger sonar signals. By this time, the Ames Laboratory at the Iowa State University had done considerable work in the separation and processing of rare earths to prepare high purity rare earth metals. This led to an alliance between the Naval Ordnance Laboratory and Ames Laboratory, which developed a processing technique to produce these "giant magnetostrictive" materials in research quantities. This feat, and subsequent patent activity, led to the birth of TERFENOL-D, which is named after its constituents, namely Terbium, Iron and Dysprosium, and its place of invention, Naval Ordnance Laboratory.

COMPANYS COMMERCIAL FOCUS

Our new audio platform based on the new F-Series actuators has opened up a
range of opportunities with already some very high profile customers keen to
work with us to develop new products. These opportunities fall into two
categories of Sound Management and Noise Management. Within the Sound
Management category we have our existing products that create audio. These
include the Soundbug(TM), the FeONIC(TM) presenter, Whispering Window(TM),
those of our Sinbon partner, Q-Voix(TM) and Q-dock(TM) and those of our US
partner, Solid Drive(TM) as well as new integrated solutions for our new
Italian partner, Margaritelli.

We believe that the largest potential for our FeONIC(TM) technology is in the
area of Noise Management where we will be able to manage both predictable and
non predictable noise and create both a spatial and an integrated solution.

LATEST RESULTS

To July 31st 2005.

* 20% increase in gross profit ( GBP310,558 -previous year GBP257,766)
* 12% increase in sales ( GBP474,700 -previous year GBP423,651)
* GBP191,492 in liabilities removed from balance sheet
* A reduction in expenditure by GBP96,694 ( GBP519,386 - previous year
GBP606,829)
* Overall loss reduced to GBP178,117, an improvement of GBP327,006 over the
previous year
* Reduced loss per share to 0.6p compared to 2.3p of the previous year
* Change from overdraft to Senior Debt financing with the Bank from January
2006

OUTLOOK

The new financial year has started well. Sales have increased for the first two
months and our controls on expenditure remain tight. A licence has been signed
with the Margaritelli Group in Italy to supply our audio solution into their
own manufactured luxury wooden panelling product and we are beginning to
attract some excellent funding opportunities for noise management systems,
again from Italy. On 16 September 2005 GBP30,000 was received in respect
of a private placing followed by a further GBP85,000 on 20 October 2005. We
are now able to negotiate a different funding structure with the Bank.

There have been recent changes to the Board with the new appointments of Tony
Sarin and Terry Bond and the resignations of Mike Robson and David Hobdey. This
now makes the Board London based. We have also transferred the role of Company
Secretary to Graham Beswick who will be supported by the Company Secretary
department of our auditors

RECENT SHARE PLACING AT A PREMIUM TO MARKET PRICE

FEBRUARY 23 2006

6P PER SHARE PRIVATE PLACING

The Company is pleased to announce a Private Placing of GBP150,000 at the price
of 6p per share made through the services of Stargate Corporate Finance Ltd
(part of Stargate Capital Investment Group). The investor is P Shah investing
on behalf of his family.

Stargate Capital's Director, Stephan Gagnon comments "It is our view that
FeONIC's portfolio of Intellectual Property (IP) has strong potential and is
currently undervalued. The Company has made good progress with key offerings
and we expect the harvesting of FeONIC's IP to create significant value in the
medium term".

SIGNIFICANT SHAREHOLDINGS

The following shareholders have a holding of more than 3% in the Company's
issued share capital.

RM and JA Simmons 2,936,000 7.2%
BRE Hopkins 2,729,167 6.6%
C and G Patel 2,666,666 6.4%
P Shah 2,527,500 6.2%
T Sarin 1,666,666 4.1%
A. Wilkinson 1,360,000 3.3%

COMPANY WEBSITE

http://www.feonic.com/

LINKS

http://www.ofex.com/overview.shtml?ISIN=GB0008354739

http://www.finfoex.com/forum/index.php

CONCLUSION

Just why should you take notice...

1. New Stronger Management.

2. Market Leader.

3. A placing at a premium to market price, there must be confidence in the company.

4. A stronger balance sheet and company moving towards profitability.

5. Bigger new contracts on the horizon.

6. An Ofex market that is growing and becoming more liquid by the day.

Please DYOR and do not use money on shares that you cannot afford to lose.

cheers GF.

LISTEN: FeOnic plc (FEO) - Proposed fundraising

Click here

I'm reading the Co FEONIC ( based in Hull, UK ), is no-longer ISDX listed, but this website allows some insight, which is useful even if only to me.
PLUS - they might return to Market, via AIM perhaps?
Their "New Idea" is to use vibrations to create electricity which in turn allows transducers to record / transmit data. Obviously distant places (of interest) are difficult to monitor ( although 10-year battery with telephone data-transmission ), is feasible . . it still relies on a battery which will need changing - however, since "Kit" is being updated, this is not a serious problem..... the whole transducer will be replaced before the battery runs flat. ( These are Lithium 3.6v batteries with exceptional shelf-life )...Typically they transmit "good" every few hours. Testing the battery each time take only a millisecond or so.

Feonic's claim makes much sense however, where several sensors need to be recorded + results transmitted ( hence a lengthy transmission every hour, maybe ).
Their short-blurb suggests Bridges and other large Infranstructures. They idea is superficially sound IMHO - use the vibration to generate a little electricity which is then used to transmit the Data. However, getting the "balance" right might be an issue, as vehicles+trains are made to ride smoother and rails are welded - leading to much less vibration.
Large structures like suspension bridges, dams, etc will have enough electricity for Traffic-control and dams are Generating MW - so I'm not able to pin-point anywhere where the need is as-yet "unmet".
Yet it does have some logic to it, but will I invest further, knowing how they have done in the past? I suspect I'll wait and see . . . there is plenty of time for the "Offer April 2018" at 1p to be diluted by the regular rounds of "Begging-Bowls" which is typical of small companies with little or no headroom - and importantly little Umph in the Sales area . . . and this is directed ( as was their Audio speaker system ) at large Institutions where things move at glacial-speed ( while Capital gushes down the drain!).
+ + + I guess no-one else has any interest in this Co....?