(Alliance News) - Allied Minds PLC on Wednesday said it plans to buy back USD3.0 million of its shares after the liquidation of its investee Spin Memory Inc initiated an internal review.
The intellectual property commercialization company holds a 34% minority stake in Spin Memory, having invested USD50.5 million since 2007. The California-based memory company has faced "significant liquidity issues" due to challenges securing new customers and the pandemic delaying the testing of its development chip with ARM, Allied Minds noted.
In light of these challenges, Allied Minds concluded it will not invest further into Spin Memory. Spin Memory has decided to liquidate and will undertake an assignment for the benefit of creditors, which offers investors a greater chance of receiving payment from the liquidation. However, Allied Minds noted that it is not guaranteed to receive any capital from the process.
Spin Memory's closure initiated an internal review, with Allied Minds concluding that it had sufficient capital to cover portfolio requirements and buy back up to USD3.0 million shares. The company is currently authorised to buy back up to 24.2 million shares.
"Share purchases will take place in open market transactions and may be made from time to time depending on market conditions, share price, trading volume and other factors," Allied Minds said.
The buyback programme will run until October 15 and will be managed by Numis Securities Ltd.
Allied Minds shares were trading flat at 20.40 pence each in London on Wednesday morning.
By Scarlett Butler; scarlettbutler@alliancenews.com
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