Emv Capital Share Discussion Threads

[loafofbread] 04/12/2024 16:09

Some of you may have seen today's FAB, Fusion antibodies RNS for grant funding that's added 50% to the share price.

Good news is that ProAxis is part of the consortium so with any luck they should receive their own lump of grant funding.

Let's hope they actually release the news rather than keep us in the dark!

£55m shot in the arm for precision medicine in Northern Ireland

Economy Minister Conor Murphy, Wendy Moore, director of data analytics at Diaceutics plc and Professor Sir Ian Greer, vice chancellor, Queen’s University, Belfast



Today at 12:12
Precision medicine in Northern Ireland has received a £55m shot in the arm thanks to a joint effort from industry and academia.
Economy Minister Conor Murphy launched the Future Medicines Institute (FMI) at Queen’s University on Wednesday. It’s backed by £35m from the NI Executive and £20m from NI companies in diagnostics and therapeutics.

The FMI is aimed at driving innovation and production in precision medicine, with the backing of Diaceutics plc, Fusion Antibodies plc, Randox Laboratories, Almac Group, Sonrai Analytics, Exploristics and ProAxsis.

Precision medicine is a branch of healthcare which tailors treatment and drugs to the specific needs of a patient.

Mr Murphy said: “This £55m investment in the FMI is a landmark step for precision medicine in the north which will strengthen our life and health sciences sector and reinforce the region’s role in global healthcare innovation.

“FMI will foster collaboration across industry, academia, and healthcare to accelerate the development of new drugs and diagnostics, driving growth in our economy.



"It will provide a vital pathway to speed up patient access to personalised treatments, streamline drug development processes, and bring innovative solutions to market at pace.”

The £55m is to be used to fund research and development between companies and universities, and to create a shared lab inside Queen’s.

[loafofbread] 04/12/2024 16:01

I'm sure most of us would have been happier if the dilution had taken place at a slightly higher price but that's life on Aim.

They were talking about taking a slug of finance for say £500k. (Which would have kept the dilution down) Not sure why that went south with £40M of assets to secure the loan.

All of us have bought in at higher prices so the sooner this is behind us the sooner we can get the rerating we deserve.

At least our profile has been raised as the roadshow has been going on for weeks.

[kingston78] 04/12/2024 11:55

Investors will take up the Retail Share Offer at 50 p because the market price now stays above it. It is rarely wrong to follow the directors who put money where their mouth is. I have observed the pattern of share movement regularly, and I would say that roughly 50 p is the bottom. We should all join in to see the share price climb to 75 p in the near future.

PE and institutional investors will directly invest in the company's portfolio companies. One or more of these start ups will have a promising future to become a star.

[loafofbread] 04/12/2024 10:44

Another decent update just posted by TheOakBloke.

[kingston78] 04/12/2024 07:53

People will notice the value of this company. New technologies are the future. Back in the 1980's Racal spun out different divisions as separately listed companies, one of which was Vodafone, which at one time became the most valuable company in the world.

[btgman] 04/12/2024 07:41

Several of their direct investments are worth significantly more than current NAV this is real additional upside. Valuations at one third of NAV are quite simply wrong way undervalued.

AIMHO
GLA
BTG

[ohisay] 04/12/2024 02:28

Just a reminder (to me!)
Assuming full subscription of both the retail offer and subscription, EMV will have 27.36mn shares in issue, implying the directly held portfolio is worth around 152p per share, or more than three times the current share price.

[ohisay] 03/12/2024 14:56

68 per cent share price discount to proforma value of portfolio post equity raise

Striking thats exaxctly the same discount FIPP has post raise.

Im more than happy to be in both and see what transpires.

[kingston78] 03/12/2024 13:54

The directors are putting money where their mouth is, so I am following suit to top up my holdings at this attractive level. I have been disappointed previously because of the poor performance of the share price, and I am sitting on a paper loss. Anyway, I think that the company is likely to turn a corner from here. One day when one or more of its investments become a giant in their field, generating huge return to EMV (and us as shareholders).

[sev22] 03/12/2024 13:25

A share offer that's hard to refuse.

Venture capital and fund firm’s offer to retail shareholders is well worth participating in.

Published on December 3, 2024
by Simon Thompson

*£1.5mn subscription and retail offer
*Wanda Health investment generates 2,077 per cent capital return in only six months
*£41mn directly held portfolio
*£65.7mn managed and third-party funds under management
*68 per cent share price discount to proforma value of portfolio post equity raise

Aim-traded investment and fund management company EMV Capital (EMVC:49p), formerly Netscientific, is raising £1.5mn through a subscription and retail offer of new shares at 50p.

Specialising in the deep tech and life sciences sectors, EMV aims to deliver shareholder value by identifying and investing in companies with transformative technologies both within the UK and internationally. The strategy focuses on achieving capital returns through the profitable exits of selected portfolio companies, as well as generating carried interest from a growing funds practice, which surpassed £100mn of assets under management in the first half of 2024.

The growth in the fair value of EMV’s directly held holdings has been notable since I included the shares in my 2023 Bargain Share Portfolio. In particular, a cohort of four portfolio companies in which EMV invested £0.4mn of cash and £0.4mn of in-kind services are now worth £7.1mn. They account for almost a fifth of the £38.5mn valuation of EMV’s directly held unquoted investment portfolio. The hefty revaluations reflect the read through valuations when unlisted portfolio companies raise new capital.

For instance, EMV’s 21.1 per cent stake in one of the four investee companies, plastic recycling technology business DeepTech Recycling, has been valued at £1.8mn following a syndicated fundraising round led by EMV. DeepTech offers an innovative solution to the environmental challenges of plastic pollution.

Other investee companies set for large revaluations.

In addition, EMV’s management revealed in the fundraising document that portfolio company, Wanda Health, is expected to complete a £1mn equity funding round on 6 December 2024 at a pre-money valuation of £5mn.

In May 2024, EMV acquired a 30 per cent stake in the company for £62,000, which was paid for by in-kind services. Wanda Health has commercialised an intelligent platform for remote patient monitoring and virtual care. It collects data from patients' homes or community settings, and provides it to clinicians, highlighting high risks cohorts. Effectively, the platform provides healthcare providers with data to detect exacerbations early in patients with acute, chronic, and specialty diseases, helping them speed up interventions, prevent adverse events, and improve patient adherence.

EMV’s fully diluted 22.5 per cent stake in Wanda Health will have a read through valuation of £1.35mn post this week’s funding round, representing almost a 22 times increase on its investment in only six months.

Sensible use of EMV’s fundraise.

The proceeds of EMV’s equity raise will be used for working capital, to develop the infrastructure of the company’s wholly owned corporate finance and venture capital firm in response to growth in the syndicated investor base, and to provide ‘dry powder’ for capital investments. That’s sensible given the valuation creation the approach is now delivering.

EMV’s subscription offer is raising £0.88mn at 50p per share through a bookbuild process and the WRAP retail offer aims to raise £0.62mn from existing retail shareholders at the same price through participating financial intermediaries. The retail offer closes at 4.30pm on 4 December 2024, so you have a short timeframe to participate.

It’s worth doing so given the undervaluation of EMV. To put this into perspective, the last reported £41mn director valuation of the directly held (quoted and unquoted) portfolio is more than three times the company’s market capitalisation of £12mn (49p). The portfolio valuation excludes the post period end £1.3mn uplift on the Wanda Health equity stake, half of which will be offset by the second half decline in the market value (from £2.5mn to £1.8mn) of EMV’s shareholding in Nasdaq-listed PDS Biotechnology Corporation (US:PDSB), a clinical-stage company that is developing cancer immunotherapies and infectious disease vaccines.

Assuming full subscription of both the retail offer and subscription, EMV will have 27.36mn shares in issue, implying the directly held portfolio is worth around 152p per share, or more than three times the current share price.

So, having outlined a strong investment case when I last suggested buying the shares, at 51.5p (‘A venture capital company on a huge discount’, 1 October 2024), I would recommend participating in the retail offer. BUY.

[ohisay] 03/12/2024 12:19

EMVC very much like FIPP which I also hold .
Both decent stocks just a bit under a cloud at the mo .
Both need one or two portfolio exits to be back in favour.

[njb67] 03/12/2024 08:46

Suspect you cannot buy volume in the market at 48p. For small cap stocks, it does not take much buying for the share price to spike upwards, so paying a premium for volume is quite common.

[ohisay] 03/12/2024 08:41

Yes that was bizarre.

[nigelpm] 03/12/2024 08:04

Not sure why anyone would pay 50p either when you can get 48p in the market.

[nigelpm] 03/12/2024 07:55

It's actually 3m @ 50p in total. Crazy business in my view when NAV is multiples higher.

[senttothegallows] 03/12/2024 07:55

Look at the Wanda uplift this look like another great underlying asset for EMV in my opinion

Wanda Connected Healthcare Systems

As announced on 28 May 2024, the Group acquired a 30 per cent. direct holding in Wanda for c.£62,000 paid for by in-kind services. Benefiting from the Group's value creation services as a member of the Venture Building programme, Wanda is expected to complete a c.£1 million equity investment round on 6 December 2024 at a pre-money valuation of £5 million. Following completion of that investment round, the fair value of the Group's fully diluted holding will be £1.35 million, a 21.5x increase. Further details of this transaction, including the Group's new direct shareholding and third party assets under management, are anticipated to be announced on or around 9 December 2024.

[loafofbread] 03/12/2024 07:51

Yup. No excuses for not buying a few!

[nigelpm] 03/12/2024 07:50

50p is a massive discount to a supposed NAV.

[blakieboy7] 03/12/2024 07:46

BTG my mood will improve and my frustration will lesson when the price rises

[loafofbread] 03/12/2024 07:44

Finally that's out of the way.

At least we know why the share price has been forced down for the last 6 weeks!

Asset value still north of £2.00 per share so no wonder the management team are going for £300K worth at 50p.

Line in the sand time and every reason for this to now move forward to a more realistic discount to NAV as company news comes in.

[btgman] 03/12/2024 07:43

Blakey I suspect its the fact you didn't say that will be the issue given your underlying negative tone for months.

Placing above share price is brilliant well done to EMV

AIMHO
GLA
BTG

[blakieboy7] 03/12/2024 07:39

Not sure why the down ticks? I didn't say it was a bad thing