CA Half Year Report4 Mar 2020 08:56
Extract here from the CA half year report. "Allied Minds' shares trade at below half of the Fund's estimate of its NAV per share."
During the period, Allied Minds achieved its first successful exit, with the sale of its stake in HawkEye 360 for $65.6 million. In September, Federated Wireless raised $51 million at a valuation more than 20% higher than its prior round in 2018, of which $10 million was invested by Allied Minds. Subsequently, Federated Wireless received US regulatory approval for both the initial and full-scale commercial deployments of its Citizens Broadband Radio Service ("CBRS") system.
In November, the Fund requisitioned a General Meeting ("GM") of Allied Minds with the aim of changing the composition of its board to help accelerate and maximise both cost reductions and cash distributions. In December, Allied Minds announced a range of developments including a $1.5 million reduction in recurring HQ expenses, an increase in the Q1 2020 initial cash return from the sale of the HawkEye 360 stake, the introduction of a cumulative cash returns threshold before any further payments could be made under the Phantom Plan, and the appointment of the Fund's proposed new non-executive director, Mark Lerdal. Based on this package of changes, the Fund agreed to withdraw its GM requisition.
Allied Minds' shares trade at below half of the Fund's estimate of its NAV per share. Its market capitalisation is less than the value of its stake in Federated Wireless at the time of the September 2019 fundraising round, plus estimated parent-level cash. Allied Minds also owns two other sizeable holdings in Spin Memory and BridgeComm, both of which have raised capital from third parties including strategic investors, as well as three smaller investments.
https://www.lse.co.uk/rns/CRS/half-year-report-hr3b3uf89axu1e6.html
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