Allied Minds Share Discussion Threads

[kooba] 20/6/2022 18:16

I'm afraid he is certainly not inflatable !"That's clearly not what I was expecting when I last suggested buying Allied Minds' shares, at 38.5p ('Technology winners with a huge margin of safety', 19 October 2020). Allied Minds' 43 per cent stake in Spin Memory had a read through valuation of US$77m at the time and accounted for 24.6p a share of my NAV per share estimate of 65p."

[wbodger] 20/6/2022 17:42

Thanks for posting that, kooba. It does look as if it might be the cause of interest. "Buy"is unambiguous.

bobo, I meant Bridge Comm's business is promising, A one-to-many optical communications system would have obvious military applications. Like the Internet nigh impossible to knock out because it uses multiple pathways, but it would be infinitely expensive, so probably completely inappropriate for an Allied Minds investment without an exit strategy to work towards. Arguably they should be in that exit phase already, negotiating a price for their share of the intellectual property.

I'm not so concerned with the down round. Imo HR is only telling the truth now because he's out of there. I'm a bit sceptical of "up" or "down" rounds because they can be spun (pardon the Spin Memory pun) to support whatever story the BoD wants.

[kooba] 20/6/2022 09:23

Not sure I captured it all ! Another go..says buy at the end!!An unloved deep value playA Boston-based intellectual property (IP) commercialisation company is undertaking a strategic review that could lead to a sale of the company and release value to shareholdersJune 17, 2022By Simon ThompsonStrategic review could lead to an outright sale of the investment companyLatest funding round of portfolio company Federated Wireless implies Allied Minds' stake is worth 40 per cent more than its own market capitalisationInvestee company Orbital Sidekick in discussions with strategic partners to provide funding to add its product to an additional six satellite launchesAllied Minds (ALM:17.5p), a Boston-based intellectual property (IP) commercialisation company focused on investing in early-stage companies with disruptive technologies, is undertaking a strategic review that could lead to an outright sale of the company, or alternatively distribution of its assets and cash reserves to its long-suffering shareholders.The complexities of IFRS accounting standards means that the best way to value Allied Minds is on a sum-of-the-parts basis given that the last reported net asset value of $44.65mn (15.1p a share) in the recently published 2021 annual accounts materially understates the value held in its portfolio companies.For example, Allied Minds' largest investee company, Federated Wireless, raised an additional $14mn (£11.4mn) in a Series D funding round last month (to add to the $58mn already raised) at a post-money valuation of $302mn. It implies that Allied Minds' 23.96 per cent fully diluted stake is now worth $72.3mn (24.5p a share), or 40 per cent more than Allied Minds own market capitalisation of £42mn (17.5p).Heavyweight investors Fortress Investment Group, Singapore's sovereign wealth fund, GIC, and Cerberus Capital Management all participated in the funding round. It's easy to understand why. That's because Federal Wireless' operates at the cutting-edge of shared spectrum Citizens Broadband Radio System (CBRS) that is reshaping wireless connectivity for cloud-based technologies.By providing customers with a secure private wireless network that is both high performance and accessible on a low-cost subscription, Federal Wireless' revenue almost quadrupled last year, buoyed by collaboration agreements with hyperscale channel partners AWS, Cisco and Intel. The company now has more than 350 corporate customers and 90,000 connected devices, serving the defence, government, education, utilities and telecoms markets across North America.It's not the only one of Allied Minds' portfolio companies that has raised new capital as OcuTerra Therapeutics closed a $35m Series B funding at a post-money valuation of $51.3m, placing a valuation of $6.3mn (2.1p a share) on Allied Minds' 12.33 per cent fully diluted shareholding. A Phase II clinical trial of OcuTerra's non-invasive eyedrops for use in early-stage diabetic retinopathy, a disease that results to loss of vision for diabetic patients, will commence in the next quarter.In addition, Orbital Sidekick, a company that is developing aerial and space-based hyperspectral imaging and analytics to enable efficient monitoring of natural resource assets and infrastructure integrity, is in advanced talks with strategic partners to provide funding to add its product to an additional six satellite launches. Allied Minds' stake was valued at $11m (3.7p) following a $16m Series A financing round in April 2021. Orbital has invested heavily in product development, engineering, and analytics, and is now growing its sales & marketing team ahead of next quarter's launch of its Global Hyperspectral Observation Satellite constellation, known as GHOSt. The company recently signed a contract with one of the largest pipeline operators in North America – Energy Transfer – to deliver recurring monitoring services from its satellites through 2023, and won a major work programme contract with In-Q-Tel, a North American Venture Capital firm. Orbital is also developing products for the mining and agriculture industries, along with fire fuel and carbon mapping capabilities, and plans to expand its footprint within the defence and intelligence community.Portfolio company, BridgeComm, is also engaged in discussions (with Aeroequity Industrial partners) to provide funding to support delivery of its patented technology. The company provides ultra-high-speed mesh connectivity for terrestrial, airborne and space systems that require 10-100+ Gbps throughput in the space and ground applications used by commercial and US government customers.The Space Development Agency is one such customer, and there is growing interest in the cutting-edge technology following Russia's invasion of Ukraine. That's because current battlefield communications tend to use a single point of distribution with the risk of a single point of failure, but Bridgecomm's high-speed optical communications allows for dispersed communications which are difficult to detect and intercept.Boeing HorizonX Ventures, the venture arm of Boeing Company, is co-investor in BridgeComm alongside Allied Minds, which holds a 62.9 per cent equity stake that had a read through valuation of $23.9m (8.1p a share) at the last funding round in September 2018. However, investment fund Crystal Amber (CRS), which holds a 18.4 per cent stake in Allied Minds, takes a more cautious view. The fund places a 2p a share value on the BridgeComm holding in its 36p a share spot net asset value calculation for Allied Minds, slightly below my own read through sum-of-the-parts valuation of 38.5p a share when I last suggested buying the shares, at 19.5p ('Bargain Hunting in the tech sector carnage', 21 February 2022).Importantly, Allied Minds' retains a positive cash position with pro-forma cash increasing by 50 per cent to $13.4mn (4.5p a share) since the start of 2022 following the disposal of its holding in restaurant supply chain software provider Touch Bistro. The bottom line is that an outright sale of the company or asset disposals by a new board of independent directors has real potential to release shareholder value. Bruce Failing, previously senior independent director, has now assumed the position of interim chairman after Harry Rein stepped down from his position. Buy.

[kooba] 20/6/2022 08:57

Must think Mr Thompson's mention has sparked a bit of interest.

[kooba] 19/6/2022 21:54

I don't subscribe but seem to have got access!

[kooba] 19/6/2022 21:52

An unloved deep value playA Boston-based intellectual property (IP) commercialisation company is undertaking a strategic review that could lead to a sale of the company and release value to shareholdersAn unloved deep value playJune 17, 2022By Simon Thompson

[kooba] 19/6/2022 21:51

Strategic review could lead to an outright sale of the investment companyLatest funding round of portfolio company Federated Wireless implies Allied Minds' stake is worth 40 per cent more than its own market capitalisationInvestee company Orbital Sidekick in discussions with strategic partners to provide funding to add its product to an additional six satellite launchesAllied Minds (ALM:17.5p), a Boston-based intellectual property (IP) commercialisation company focused on investing in early-stage companies with disruptive technologies, is undertaking a strategic review that could lead to an outright sale of the company, or alternatively distribution of its assets and cash reserves to its long-suffering shareholders.The complexities of IFRS accounting standards means that the best way to value Allied Minds is on a sum-of-the-parts basis given that the last reported net asset value of $44.65mn (15.1p a share) in the recently published 2021 annual accounts materially understates the value held in its portfolio companies.For example, Allied Minds' largest investee company, Federated Wireless, raised an additional $14mn (£11.4mn) in a Series D funding round last month (to add to the $58mn already raised) at a post-money valuation of $302mn. It implies that Allied Minds' 23.96 per cent fully diluted stake is now worth $72.3mn (24.5p a share), or 40 per cent more than Allied Minds own market capitalisation of £42mn (17.5p).Heavyweight investors Fortress Investment Group, Singapore's sovereign wealth fund, GIC, and Cerberus Capital Management all participated in the funding round. It's easy to understand why. That's because Federal Wireless' operates at the cutting-edge of shared spectrum Citizens Broadband Radio System (CBRS) that is reshaping wireless connectivity for cloud-based technologies.By providing customers with a secure private wireless network that is both high performance and accessible on a low-cost subscription, Federal Wireless' revenue almost quadrupled last year, buoyed by collaboration agreements with hyperscale channel partners AWS, Cisco and Intel. The company now has more than 350 corporate customers and 90,000 connected devices, serving the defence, government, education, utilities and telecoms markets across North America.It's not the only one of Allied Minds' portfolio companies that has raised new capital as OcuTerra Therapeutics closed a $35m Series B funding at a post-money valuation of $51.3m, placing a valuation of $6.3mn (2.1p a share) on Allied Minds' 12.33 per cent fully diluted shareholding. A Phase II clinical trial of OcuTerra's non-invasive eyedrops for use in early-stage diabetic retinopathy, a disease that results to loss of vision for diabetic patients, will commence in the next quarter.

[bobonumber1] 19/6/2022 20:51

Can you post the content. It's behind a paywall

[kooba] 19/6/2022 18:36

For those might have missed ..https://www.investorschronicle.co.uk/ideas/2022/06/17/an-unloved-deep-value-play/

[bobonumber1] 17/6/2022 20:23

Bodger. I read in results that BC raise would be on a down round. That's not very promising. Orbital are promising but are currently negotiating a raise which we will not be able to participate in, meaning our stake will be diluted to low double or single figures. I would back ALM to raise finance via a placing to hold or increase our stake. I hope Federateds cash runway is sufficient so they can get to the stage of a flotation.

[wbodger] 17/6/2022 18:42

Well, at least it reduces confusion about who might be running the meeting. (Not Harry.) Presumably the COO. I wonder what Failing thinks about his mate - my guess: this was planned but not communicated at all. That is pretty poor.

We should at least be in the hands of CA, Invesco and GIC in the sense of people having a plan or knowing where they're going. Biggest 4 shareholders:
- CA 18.6%
- Invesco 16.9%
- GIC (=ARCM, Singapore Sovereign Wealth Fund) 8.09%
- Mark Pritchard 5.53%. Total of biggest four: 49.1%

Nine of biggest ten are all funds or suchlike. Top ten including Pritchard control 72%.

I'm not entirely convinced about the figures for eg Federal Wireless, which could easily be marked down if there is less profit in FW's market than is assumed. I remember Spin Memory's nasty surprise left us spinning, and after Harry goes I hope the new incumbent does not do some unwelcome revisions. (The valuations look like darts thrown at a dartboard. Is that unfair?)

Bridge Comm looks promising, as does OcuTerra. (The trick will be to grow value faster than they consume seed funds.) I hope FW may be net cash positive after the latest round.

Overall Harry Rein spends a lot of time on the risks. I have no doubt he has not given up on being asked to stay on.

I will try to look more closely over the weekend. It's quite heavy going, isn't it?

[bg23] 17/6/2022 08:06

Duncan, filtered

[kooba] 17/6/2022 07:56

Well there was me being told we get suspended if we go to one director..seems Harry stepped down after the results publication on Wednesday ( not even on the contacts) so that indicates we remained listed yesterday.Total shower..where are the company brokers in ensuring suitable governance in place?

[casholaa] 15/6/2022 09:36

Not holding my breath.

[kooba] 15/6/2022 07:54

3 months into a sale process and i can't see any comment on progress /interest. Rest is same old slide in shareholder value and no actual easy way of calculating nav per share..if anyone can let me know.Numis normally produce something bullish on every fall in asset value..but since they are engaged in the sale process might not even get that.Sorry state of affairs and the directors should be totally embarrassed in the state this is in.We are just over a year since the Capital Markets Day when all was great 14 months later disaster and the company allowed lack of information to prevail especially on federated for a long period of time. From my knowledge of Federated 2020 revs 3.8 times would mean that revs were less than $11m last year against forecast $17m...on target at half year..on target with AM interims in October as far as i can tell.The company second half must have been dire and they must have know very early in the second half.Highly misleading and if in the states with motivated shareholders they would be facing law suits on misleading investors.

[casholaa] 14/6/2022 14:43

At least it's not Tuesday tomorrow -we've been there already.

[davesailing] 14/6/2022 12:06

Results day tomorrow. Maybe an announcement of a successor? Takeover, on or off, delisting from AIM or BAU......How will the share price fair...

[casholaa] 02/6/2022 21:38

IMHO bigger than FW related stuff. I do think that alm blundered with funding it though. Purely speculative but success would be global for many years.

[kooba] 02/6/2022 06:20

There's more..all interesting stuff.So trials start end of this month by the looks of it.https://www.pharmavoice.com/news/woman-of-the-week-ocuterra-therapeutics-kerrie-brady/624637/

[kooba] 02/6/2022 06:10

One for you Casholaa !Brady notes that phase II trials of OTT166 are absolutely key to the company's future direction. With funding secured, OcuTerra has developed its phase II protocol and is scheduled to being dosing patients in Q2 2022. Brady hopes to have the topline phase II readouts by early 2024, adding "We've got a host of activity occurring now to build the company out further. We have some other ideas for other indications and additional integrin products, but for now, our priority is getting this trial underway."https://www.pharmasalmanac.com/articles/transformative-early-and-patient-centric-treatments-for-retinal-diseases