Primorus Inv. Regulatory News (PRIM)

Primorus Investments plc

("Primorus" or the "Company")

Quarterly Investor Update

Primorus Investments plc (AIM: PRIM, NEX: PRIM) is pleased to provide its first periodic portfolio review regarding its current holdings and activities acquired and managed as per its investment mandate.

Executive Director's Quarterly Comment - Alastair Clayton

With the September Quarter drawing to a close the Board are pleased to be able to provide shareholders and stakeholders with our very first periodic review of our current investments and future activities. It is our intention going forward, over and above the regular disclosures provided to shareholders on specific regulatory matters, to publish a quarterly review of our current holdings with a summary of our individual positions and reviews of their performance to date and comments on potential outlook for the coming quarter and beyond.

Primorus has now positioned itself as an active investor in a range of unquoted UK and international companies across a spread of sectors including natural resources, customer-focussed technology and financial services. It has been a busy period for the Company in which we have also successfully completed several capital raisings to provide further investment funds as well as sustaining the further funding requirements of our existing investment portfolio and general working capital. As per our investing strategy we have made a good number of investments on the back of these capital raisings. The Board are of the belief that the unquoted and pre-IPO markets remain significantly under-serviced from a pure equity perspective.

Through the annual audit process the Company publishes the outcomes of the Board's and its auditors' review of the value of our investments. Whilst accounting treatments can be complex and investors should always read the basis of preparation of the accounts and the individual notes to the accounts, the general methodologies for valuing our individual investments can be summarised as follows:

As is customary, initially all investments are valued for audit purposes at the price the Company paid. This may change over time due to a number of circumstances. The Board may, in some cases reduce the carrying value of investments (impairment) when it is, in the Board's and the auditors' opinions, prudent to do so either as the outlook diminishes or a funding price below our in entry price is executed. In some cases, if the price paid by new and existing investors in subsequent funding rounds in both private and IPO funding rounds is above what the Company paid, the Board and its auditors may raise the carrying value of any given investment where it is prudent to do so.

The Board takes the view that our key performance indicator from an investment return perspective is always to have exited fully and returned cash to Treasury and, when appropriate, return that cash to shareholders via dividends and / or share buybacks.

In general, the Board is encouraged by the progress to date in terms of making and sustaining its investment portfolio. Given many of our current investments have been made in the calendar year 2017 we have largely been in investment mode.

From time to time we have taken opportunistic positions in other listed companies as part of a very limited trading strategy. For example, we have owned shares in Angus Energy and Zenith Energy as part of what we considered very undervalued capital raisings. We have now successfully traded out of both of these investments for pre-tax, unaudited profits that have gone back to Treasury.

Importantly for shareholders, as a result of the above, we have a large number of investments that are positioning themselves for further pre-IPO funding rounds in the coming final quarter of 2017 and into early 2018. Furthermore we expect some of the companies we invested in to begin the IPO process in early 2018.

With our pipeline of investments maturing over time we have set ourselves up for a very exciting 2018.

Current Holdings:

Horse Hill Developments

The Company currently owns a 10% direct interest in Horse Hill Developments Limited, which is a special purpose company that owns a 65% participating interest and operatorship of Licence PEDL137 and the adjacent Licence PEDL246 in the UK Weald Basin.

As reported in March 2016, the final total aggregate stable dry oil flow rate from two Kimmeridge limestones plus the overlying Portland sandstone in HH-1 stands at 1,688 barrels of oil per day ("bopd"), a UK record for an onshore discovery well. Over the 30 to 90 hour flow periods from each of the 3 zones in HH-1, no clear indication of any reservoir pressure depletion was observed. 

The carrying value of this investment remains unchanged since our most recently published audits accounts, however the Board looks forward with considerable interest to the upcoming long-term flow test programme and its likely potential impact on our investment value going forward.

Gold Mines of Wales

Gold Mines of Wales Limited (which is 49% owned by Primorus) owns 100% of Gold Mines of Wales (Operations) Limited ("GMOW"). GMOW continues to hold the Crown Estate ("Crown") Mines Royal Exploration Option ("Option") over the Dolgellau Gold-Belt. GMOW, the project operator, are due to advise us when further ground works will commence. We understand GMOW are undertaking further project design activities to determine the best and most acceptable path forward in what is an environmentally sensitive region. GMOW is also currently working with its environmental consultants to commence environmental impact ("EIS") and conceptual planning studies. The carrying value of this investment remains as per our most recently published audited accounts.

SOA Energy

SOA Energy is an oil exploration and development company with prospects in the Dead Sea region of Israel. Primorus participated in a private funding round by purchasing 14,977 shares at £6.67 per share. SOA is currently seeking a significant funding package to further their development plans.

Boletus

The Company owns a 20% shareholding in Boletus, a special purpose company established for developing the Bengkulu Coal Project on the Indonesian island of Sumatra. Since the time of the original investment in Boletus, Boletus have reviewed their options with the lease owner of the Bengkulu Coal Project to ascertain if a commercially viable coal operation is indeed possible. At this stage it is not deemed viable and as such the investment in Boletus has been fully impaired. The Board continues to believe this investment holds no realisable value going forward.

Fresho

Fresho, a company in which Primorus holds an investment of £175,000, representing approximately 3.5% of Fresho's share capital, is positioning itself as a leading Australian B2B company servicing the restaurant and food service industries. By aggregating and streamlining the food order process via Fresho's unique cloud-based platform, both customers and suppliers are able to make savings in time, money and wastage and also generate powerful reporting and business data analytics. To date Fresho's customer base has been located in Melbourne with many of Australia's most iconic restaurants and suppliers using the product, however they are now expanding into a number of Australia's other cities and New Zealand. Whilst unchanged at investment value for now, we expect to review the value of this investment in the event of the successful completion of a proposed capital raise early in 2018 at a price above our investment price.

Nomad Energy

Nomad Energy is a private oil and gas exploration and development company primarily focussed on commercialising existing gas reserves in shallow offshore waters of the Ivory Coast. The Company is currently attempting to negotiate a gas sales agreement with local utilities for the supply of gas to existing and proposed power stations in the country. Primorus owns 40,000 shares at the last investor round price of US$7.50 per share. Upon any successful further funding levels by Nomad Energy we may review the value of this investment.

TruSpine Technologies

Recently Primorus invested £500,000 in TruSpine Technologies Limited on a pre-new money valuation of £15m. Founded in December 2014, TruSpine secured intellectual property and subsequently developed the Faci-LOK and Cervi-FAS minimally invasive spine stabilisation devices, and the VOSC Catheter atherosclerosis treatment product 'VOSC Catheter'. This development is on-going and TruSpine is targeting FDA clearance and commercialisation of its first product, the Faci-LOK with a view to an AIM IPO.

Sport:80

Primorus invested £100,000 in Sport:80 plc on a pre-new money valuation of £10m as part of a fundraising of up to £1m. Sport:80 is a technology and management company with a proprietary cloud-based platform focused on transforming the business operations and management of sports organisations. The Sport:80 platform is used by 20 prominent sports organisations. Sport:80 is revenue-generating with four-fold revenue growth per annum since 2014. In the 12 months to 31 December 2016 it had total turnover of approximately £458,000 and made a loss before tax of approximately £269,000. It is the intention of Sport:80 to pursue an AIM IPO.

Farina Investments

Primorus invested £100,000 in Farina Investments (UK) Limited on a pre-new money valuation of £4m. Farina is a boutique corporate finance and asset management company which specialises in leveraging profit opportunity in the post-crisis financial landscape. Farina has been carefully structured and strategically placed to fully capitalise on these opportunities, thereby optimising capital growth, profitability and returns for both the company and investors. Farina is currently exploring various UK listing opportunities either via IPO or reverse takeover. 

Engage

The Company invested £400,000 in Engage Technology Partners Limited ("Engage") on a pre-new money valuation of £15m as part of a fully subscribed £5.25m funding round. Founded in 2013, Engage builds software to assist with finding, hiring, compliance and paying of the rapidly growing contingent workforce in the UK. Engage has rapidly gone from a minimally viable product to a fully saleable and scalable SaaS platform which has built up an impressive and rapidly growing customer base including many household names. An AIM IPO is planned to take place in 2018.

FOMO Money

Primorus invested A$400,000 (approximately £240,000) in FOMO Money Pty Ltd ("FOMO Money") on a pre-new money valuation of circa A$6m. FOMO Money is a new entrant into the Australian Fintech sector based in Melbourne which has been in development for the past 18 months. FOMO Money is an online lending business which will offer personal loans and, in time, brokered home loans that will target the millennial market. As a new corporate entity, FOMO Money does not have any historic financial information. 

WeShop

Primorus invested £200,000 in WeShop Limited ("WeShop") on a pre-new money valuation of £25m. WeShop is a new way to shop online and earn rewards. Users can browse millions of products from many top brands, discover which have been recommended by people known to them and earn rewards to withdraw as cash or donate to charity. WeShop allows the user to shop with friends to share ideas and gain inspiration, with everyone earning rewards. An AIM IPO is planned to take place during 2018. 

Stream TV

Primorus invested US$200,000 on a fully-diluted valuation of US$336m. Stream TV is a Philadelphia-based new media company created to serve a consumer market seeking enhanced entertainment and communications experiences through devices with unlimited accessibility and superior quality. Through its wholly-owned research subsidiary, SeeCubic B.V., Stream TV has developed breakthrough glasses-free 3D display technology launched under the trade name Ultra-D. Stream TV is on the cusp of commercially launching, via license, a range of TV, tablet and smartphone glasses-less 3D screens in 2018. Further licenced products will follow including laptops, PCs, gaming, medical, and automotive. Stream TV intends to IPO on NASDAQ in 2018.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

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