Crystal Amber Fund Limited Monthly Net Asset Value

 
TIDMCRS 
 
Dissemination of a Regulatory Announcement that contains inside information 
                according to REGULATION (EU) No 596/2014 (MAR). 
 
                                                                  10 April 2017 
 
 
                          CRYSTAL AMBER FUND LIMITED 
                     ("Crystal Amber Fund" or the "Fund") 
 
Monthly Net Asset Value 
 
 
Crystal Amber Fund announces that its unaudited net asset value ("NAV") per 
share at 31 March 2017 was 241.49 pence (28 February 2017: 231.52 pence per 
share). 
 
The proportion of the Fund's NAV at 31 March 2017 represented by the ten 
largest holdings, other investments and cash (including accruals), was as 
follows: 
 
Top ten holdings               Pence per share Percentage of investee equity 
                                               held 
 
Hurricane Energy plc                81.1                     11.7% 
 
Northgate plc                       33.1                     4.4% 
 
Grainger plc                        31.4                     3.0% 
 
STV Group plc                       21.4                     14.2% 
 
Leaf Clean Energy Co.               13.7                     29.9% 
 
FairFX Group plc                    13.6                     25.9% 
 
GI Dynamics Inc                      8.8                     40.6% 
 
Sutton Harbour Holdings plc          7.2                     29.3% 
 
NCC Group plc                        6.1                     1.6% 
 
Johnston Press plc                   4.6                     21.4% 
 
Total of ten largest holdings       221.0 
 
Other investments                   23.5 
 
Cash and accruals                   (3.0) 
 
Total NAV                           241.5 
 
Investment Adviser's commentary on the portfolio 
 
Over the quarter to 31 March 2017, NAV per share increased by 10.8 per cent. 
 
The top three positive contributors to NAV growth over the quarter to 31 March 
2017 were Hurricane Energy plc (5.1%), GI Dynamics (2.5%) and FairFX Group 
(2.1%). 
 
Hurricane Energy plc ("Hurricane") 
 
During the quarter, Hurricane continued to de-risk its assets, confirming a 
670m oil column at Lancaster and announcing another significant oil discovery 
at its Halifax well. 
 
In March 2017, Hurricane announced that oil at Halifax was of a similar quality 
to that encountered at Lancaster and was found at even greater depth, 
indicating that Lancaster and Halifax could form one large structure. Current 
estimates based on the size of the oil column at Halifax indicate that it could 
hold in the region of 400 million barrels of oil, with analysts suggesting this 
could take Hurricane's contingent resource base to over 1.6 billion barrels. If 
Halifax and Lancaster are found to be a single accumulation, there is potential 
for the resource for these assets alone, to exceed 1 billion barrels of 
recoverable oil. 
 
During the quarter, the Oil and Gas Authority announced the results of an 
offshore licensing round, which saw majors, BP and Shell, secure three licenses 
adjacent to those held by Hurricane, validating Hurricane's activities in the 
region. 
 
The Fund regards Hurricane's recent drill results as extremely encouraging.  We 
look forward to the imminent release of the Competent Person's Report and the 
continuation of farm-out discussions with potential partners. 
 
Over the quarter, Hurricane's share price increased by 14.1 per cent. The Fund 
reduced its position into demand to manage its exposure to this successful 
investment. At the quarter end, the Fund's shareholding (excluding its 
warrants) represented 33.6 per cent of NAV. 
 
GI Dynamics Inc ("GI Dynamics") 
 
During the quarter, the Fund announced on 10 February 2017 that it had acquired 
16.1 per cent of the issued Chess Depository Interests ("CDI") in GI Dynamics, 
taking the Fund's stake in the company to 38.7 per cent. 
 
GI Dynamics is the developer of EndoBarrier, the first minimally invasive 
device therapy approved for the treatment of type 2 diabetes and obesity. 
EndoBarrier is a temporary bypass sleeve that is endoscopically delivered to 
the duodenal intestine, offering similar effects to the surgical gastric 
bypass. It is CE mark approved and commercially available in Europe and a 
number of countries outside of the United States. 
 
Founded in 2003, GI Dynamics is headquartered in Boston, Massachusetts. It 
listed in September 2011 on the Australian Stock Exchange, with a share price 
of AU$1.10 and market capitalisation of AU$300 million. Following what the Fund 
considers to be several operational failures by previous management, including 
a terminated FDA trial, GI Dynamics' share price stood at 7¢ at the quarter 
end, valuing the company at AU$38.2 million, approximately GBP23.2 million. 
Shareholders since listing include Johnson & Johnson and Medtronic Inc. 
 
Since launch, the EndoBarrier therapy has been used in over 3,500 patients 
worldwide. Multiple independent studies support its safety and efficacy in 
reducing weight, HbA1c (blood glucose) levels and the need for insulin and 
other prescribed medications. EndoBarrier stands as a minimally invasive 
alternative to bariatric surgery and pharmacotherapy, which have well 
documented side effects and safety issues. The wide prevalence of type 2 
diabetes and obesity present a potentially vast market opportunity expected to 
reach 355 million patients in 2030. 
 
The Fund supports the current management's strategy to commercialise the device 
in Europe, initiate a new FDA trial and continue to gather clinical data. This 
would build on 2016's successes, including the 300 patient UK trials led by the 
Association of British Clinical Diabetologists ("ABCD") and the data announced 
from the German registry, which included 243 patients. The company has achieved 
partial reimbursement in Germany (NUB status 1) and Israel and has received 
preliminary reimbursement codes in Holland and Switzerland. 
 
The Fund believes that GI Dynamics has a world class technology, addressing an 
unmet clinical need, with its current share price a function of shareholder 
disillusionment resulting from past management disappointments. 
 
The Fund, in conjunction with its Investment Adviser, is now working with the 
GI Dynamics board to fully capitalise on what the Fund believes is GI Dynamics' 
highly scalable potential. 
 
The Fund continued to grow its stake over the quarter, ending the period with a 
40.6 per cent stake. 
 
Over the quarter, GI Dynamics' share price increased by 204 per cent. 
 
FairFX Group plc ("FairFX") 
 
During the quarter, FairFX released a positive trading statement, highlighting 
strong growth, accelerating in the second half of 2016. Turnover for 2016 
exceeded expectations and was up 27 per cent on 2015. Total turnover in the 
second half of the year was 45 per cent ahead of the same period in 2015 and 
the corporate platform saw exceptionally strong growth, with turnover up 98 per 
cent on the previous year. 
 
In January 2017, FairFX announced the acquisition of an e-money license, which 
could enable the company to issue its own cards and reduce its cost base. 
 
Over the quarter, FairFX's share price increased by 50 per cent. The Fund 
believes that there is significant scope for further share price appreciation. 
 
For further enquiries please contact: 
 
Crystal Amber Fund Limited 
William Collins (Chairman) 
Tel: [phone] 
www.crystalamber.com 
 
Allenby Capital Limited - Nominated Adviser 
David Worlidge/James Thomas 
Tel: [phone] 
 
Winterflood Investment Trusts - Broker 
Joe Winkley/Neil Langford 
Tel: [phone] 
 
Crystal Amber Advisers (UK) LLP - Investment Adviser 
Richard Bernstein 
Tel: [phone] 
 
 
 
END 
 

(END) Dow Jones Newswires

April 10, 2017 02:00 ET (06:00 GMT)