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Brainspark - Technology Start-Up Incubator : Boom or Bust ??? (BSP)     

SueHelen - 08 Nov 2004 18:25

brainspark.gifhttp://www.brainspark.com/
Price 0.25-0.40 pence : 08.11.04
Trades over 60,000 Shares are delayed in reporting by 1 Hour.
Daily Execution Price and Volume
big.chart?symb=uk%3Absp&ma=None&maval=9&big.chart?symb=uk%3Absp&ma=None&maval=9&big.chart?symb=uk%3Absp&ma=1&maval=10&ufbig.chart?symb=uk%3Absp&ma=1&maval=50&ufbig.chart?symb=uk%3Absp&compidx=aaaaa%3A

Brainspark Plc is an AIM listed company, focusing on investments in best-of-breed Information & Communication Technology (I&CT) primarily in Europe and Israel.
The core competence of the Company is the vision and the understanding of I&CT, and how these technologies will be key for the creation of break-through applications, combined with an international network of excellence among researchers and entrepreneurs.
The advent of broadband will have a major impact on the way businesses operate providing opportunities for new services and contents
We believe it is a timing issue, rather than a 'will be' issue. Brainspark is positioning its portfolio of investments to be ready to take advantage of the broadband opportunities when they become available.

Shares in issue 192m 1p ORDS
Major shareholders
Major Shareholders.................Amount................% Holding
Cross Atlantic Technology Fund.....33,916,050.............17.64
Company Directors
Francesco Gardin...................31,903,278.............16.59
Alberto Agosta......................2,527,273..............1.314
Edward Burman.........................681,818..............0.355

Brainspark have investments in the following companies:

geosim.gif
www.geosimcities.com
Geosim Systems has developed proprietary technology for automation of the production process of 3D models as a product derived from satellite and aerial images. This technology will be applied in standard products for the creation of very high resolution 3D models of towns and other locations, and will be accessible via broadband Internet.
Geosims technological partner is Argotek, owned by the FORMULA Group (NASDAQ-FORTY), one of the major Israeli software companies.
Geosim Systems was founded in Israel five years ago as a satellite company of Tiltan System Engineering Ltd (TSE) by a group of technical experts who had been members of the Israeli Air Force.

From November 2003 to January 2004, Brainspark made a further investment in
Geosim Systems Limited (51.75% owned by Brainspark) of
US$50,000. GeoSim is an Israeli company, whose main business purpose is the
creation of 3D models of cities and other areas of special interest. GeoSim's
management believes its state-of-the-art technological tools allow cost and time
saving in data collection and 3D modeling process. GeoSim realised revenues in 2003 of about US$400,000 (#240,000) mostly in the second half of the year and is expecting to make further progress in 2004, particularly in the USA where the
main focus will be on developing Homeland Security applications and in Italy
where the Company is in discussions with local authorities in a number of
historic cities.

www.theusabilitycompany.com
SOLD 320k

metapack.gif
www.metapack.com
MetaPack's mission is to make traditional supply chains more responsive to individual customer needs. We provide zero defect fulfilment that attracts, converts and retains valued customers at the lowest cost to serve. We are helping retailers to: extend range availability in smaller stores reduce the cost and improve the service of online fulfilment implement web-based ordering throughout retail offer the widest range of delivery options revolutionise services in shopping centres MetaPack works for companies such as Boots, British Land, GUS (Reality), M&S, Sky and WHSmith.

kerb.gif
www.kerb.co.uk
Kerb, winners of various major industry design awards (including a Design Week Award and the Yell Award for best use of e-commerce), and the Future UK Internet "Web Agency of the Year" award, are a Full Service Digital Agency based in Brighton consisting of 20 people, and have built a reputation for producing high quality, funky, cutting edge Internet sites, CD-Roms, and web-based games for clients. These UK clients include: Pepsi, Electronic Arts, Mathmos, Scottish Telecom, EMI, the Mean Fiddler, Elida Faberge, Flextech and Petspark.com (one of Brainsparks incubated companies). Kerb also have clients in Switzerland, Japan, and Hong Kong.

fortunecookie.gif
www.fortune-cookie.com
Fortune Cookie creates award-winning online solutions. From consultation to actual implementation of the chosen route, turning difficult technical propositions into simple and dynamic realities. Fortune Cookie is a global brand with global coverage, and an integral partner of Brainspark and the partner companies.
On 4 December 2003, the Company increased its percentage ownership in
Fortune Cookie (a company which offers strategic thinking, design and build
services in web and wireless technologies) from 25% to 29.44% by capitalising
#48,176.39. This transaction puts Fortune Cookie in a better financial position
to enter into discussions for potential mergers to enlarge its market share and
to participate in a large innovation project overseas.

easyart.gif
www.easyart.com
Easyart.com is the UK's largest online retailer of reproduction prints and limited edition art. It offers over 40, 000 fine art and photographic prints, with more being added every day, plus made-to-order picture framing.

tradeserve.gif
www.traderserve.com
TraderServe is an application service provider targeted at professional traders, offering them a flexible, highly sophisticated, yet easy-to-use, modelling system for financial and futures markets.

sanvicente.gif
www.sanvicentegroup.com
The shareholders of the company are prominent financial institutions, corporations and technology entrepreneurs from throughout North America and Europe. The company is led by a board of directors with extensive experience in the venture capital industry.

acs.gif
www.acsys.it
Advanced Computer Systems (ACS) are involved in the design and production of ground stations for the acquisition of data from remote sensing satellites; analysis and processing of digital images; geographic information systems; virtual reality; management of large amounts of information. It is currently preparing the complete digitalisation system of the radio archives and production for RAI (Italian State Broadcaster).

www.smile-on.com
SOLD 220K

impression.gif
www.impression.it
Impression created in February 2000 by a group of Internet experts operating in the ISP sector (Internet Service Provider) provides high added value quantitative and qualitative analysis of accesses to web-sites and detailed online reporting.

ludonet.gif
www.ludonet.it
Ludonet, founded in 1995, is a leader in the development and management of online entertainment and virtual community solutions.

In September Interims directors highlighted consolidated NAV position of 3.3m and described this valuation as conservative. Directors are paid in options/warrants at 1.1 - 1.31p/share. Given two investments that carried a book value of 22,000 in these results were sold for over 500k, how much is the remainder worth?

192m shares in issue
Mid-Price...........NAV / Market cap equivalent
0.30p................0.58m
0.40p................0.77m
0.50p................0.96m
0.60p................1.15m
0.70p................1.34m
0.80p................1.54m
0.90p................1.73m
1.00p................1.92m
1.10p................2.11m
1.20p................2.30m
1.30p................2.49m
1.40p................2.69m
1.50p................2.88m
1.60p................3.07m
1.70p................3.26m
1.80p................3.45m
1.90p................3.64m
2.00p................3.84m

Master RSI - 26 Oct 2005 10:43 - 49 of 152

Top % Gainers
1 AFG African Gold Plc Ord 10p 42.5 38.0 844.44
2 PCR Procarbon Ord Npv 2.125 0.5 30.77
3 BSP Brainspark Ord 0.01p 0.775 0.15 24.0
4 PMK Plus Mkts. Ord 5p 17.25 2.5 16.95
5 URL Union Ord Npv 3.5 0.5 16.67
6 EDR Egdon Resources Ord 1p 76.5 9.5 14.18
7 RAF Real Affinity Ord 0.1p 0.325 0.04 14.04
8 LRM Lombard Risk Ord 0.5p 9.25 1.125 13.85
9 GTL Gtl Resources Ord 1p 1.5 0.175 13.21
10 MXC Matrix Comms. Ord 10p 140.0 15.5 12.45
11 ISS Isis Res Ord 0.1p 3.875 0.375 10.71
12 MKD Marakand Ord 1p 15.25 1.25 8.93
13 IBG Internet Bus. Ord 1p 18.75 1.5 8.7
14 STCM Steppe Cement Ord Usd0.01 58.0 4.5 8.41
15 ALT Applied.opt.t. Ord 5p 41.5 3.0 7.79
16 BVC Batm Advanced Ord Ils0.01 24.75 1.75 7.61
17 CBX Cubus Lux Ord 1p 14.5 1.0 7.41
18 CPNR Carpathian Ord Npv 3.875 0.25 6.9
19 DGO Dragon Oil Ord Eur0.10 152.25 9.75 6.84
20 AP. Alltracel Ph. Ord Eur0.0125 12.5 0.75 6.38

stewart3250 - 26 Oct 2005 10:44 - 50 of 152

Just saw your post on the board, glad I got 500,000 @0.003 a few months ago, I tucked em away and waited.

Always thought these looked good and I like the look of the geosim deal

stewart3250 - 26 Oct 2005 10:45 - 51 of 152

.

katcenka - 26 Oct 2005 11:02 - 52 of 152

wow 64%

PapalPower - 26 Oct 2005 11:53 - 54 of 152

News on the ACS deal is what is needed to firm this rise up if this is what its from, it removes 300K debt and gives Brainspark an extra c. 1.1 million cash (or shares) next year, and that news should be coming soon (with the Oct 31st deadline for asset transfer)

Fortune Cookie is doing very well as are other companies in the BSP portfolio, and that is all with Geosim sitting there waiting to happen.

Relax and accumulate, its worth a lot more than the present price in the long term, and in the long term I am looking for 4p to 5p with the Geosim deal going ahead.

katcenka - 26 Oct 2005 12:27 - 55 of 152

alot reckon this will hit 2p really easily... emm I doubt it

PapalPower - 26 Oct 2005 15:33 - 56 of 152

2p will come, but in time. If the Geosim deal goes ahead then it will hit 4p to 5p, and its just an MOU and an if at the moment, that is why the price is where it is, but the potential is there.

The ACS deal of which part one should go into effect before 31st Oct and the full deal by July 06 writes off 300K of debt and gives BSP an additional 1.1 million in cash. The cash burn rate will now be greatly reduced at the rental agreement is terminated. The portfolio companies are doing well. ACS deal going ahead should firm this up and it should trade in the 1p to 1.5p range, and then it is just waiting for news updates on Geosim and "the Firm" and the agreement/offer.

PapalPower - 26 Oct 2005 15:35 - 57 of 152

Basically a very interesting stock, a good buy and hold and add type stock for the long term rewards on offer for long term holders, not a trading stock.

The trouble is calling the dips right to add more, as you can see, when it moves it moves quick, so in some respects if you are adding just add as and when you feel like it.

stewart3250 - 26 Oct 2005 15:55 - 58 of 152

I hold about 500,000 of these bought a number of months ago @ 0.003, why the increase today, there has been no RNS, I have to admit it is a small part of my portfolio but was very pleased at the rise today, I nearly sold last time @ 1.4p

PapalPower - 26 Oct 2005 16:15 - 59 of 152

News is due on the ACS deal it is thought, as the 31st of Oct was a key marker for initial transfer of assets and initial payment of 300K. Deal would then go through with final payment of 1.1 million any time before July 2006.

So its thought we should get the initial confirmation on ACS very soon, but of course everyone is waiting for an update on the mega bucks Geosim one as well.

stewart3250 - 26 Oct 2005 16:27 - 60 of 152

Papelpower

Was there a reason why it moved up today though

PapalPower - 26 Oct 2005 16:56 - 61 of 152

No, it can only be two reasons though.

1 is a technical bottom on the charts.
2 is leaked info on the ACS deal first phase being complete and news coming soon.

Or a combination of 1 and 2

Its like I have seen on HML today, suddenly lots of buys, this never happens on HML so I take it that info has been leaked and news is due very soon on there.

PapalPower - 26 Oct 2005 16:57 - 62 of 152

If there is no reason for a 40% rise then the company should clarify this in the morning with a no reason for rise RNS.

stewart3250 - 26 Oct 2005 17:05 - 63 of 152

There is the reason

Update


RNS Number:2162T
Brainspark PLC
26 October 2005



FOR IMMEDIATE RELEASE 26 OCTOBER 2005

BRAINSPARK PLC

Brainspark notes the recent rise in its share price on AIM and confirms that it
understands that the heads of terms announced on 11 August 2005 regarding Geosim
Systems Ltd, in which it currently holds 50.1 per cent. of the equity, are
expected shortly to be converted in to full legal documentation. As and when
this is signed a further announcement will be made and Brainspark will be in a
position to disclose the name of the US private equity firm involved.

ENDS

Further information

Francesco Gardin, Brainspark PLC 0039 0228 0141
Roland Cornish, Beaumont Cornish Limited 020 7628 3396

stewart3250 - 26 Oct 2005 17:10 - 64 of 152

Well my understanding is that Geosim is the big one, this should fly tomorrow, unless I am missing something obvious.

mjr1234 - 26 Oct 2005 17:46 - 65 of 152

LOOK AT THE RNS!!

THIS IS GOING TO ROCKET TOMORROW!!

stewart3250 - 26 Oct 2005 17:52 - 66 of 152

I would be very interested in thoughts on SP tomorrow, medium term and long term.

I am correct in saying Geosim is the big deal, I have read the RNS on 11 August and it is not as clear as it could be however it would seem for BSP this is a huge deal and very profitable

katcenka - 26 Oct 2005 17:54 - 67 of 152

5p minium... yESSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS

stewart3250 - 26 Oct 2005 20:54 - 68 of 152

I have looked at some posts on the other board and the following would seem to have been assumed, I would be interested in your comments.

It would seem then that we have a market cap of approx 10M which equates to 5.2p per share and that is before we look at benefits from the NEWCO or the existing assets of BSP.

That being the case the SP is going to rocket tomorrow I only have .25% of the company but I will be happy with that having bought in some months ago.

I have a question though why if the company potentially is worth 10M + has the SP not been trading higher to reflect some of this value, or it it simply because the deal may not have been signed.
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