Seneca Growth Capital Vct Share Discussion Threads

[stupidboypike] 06/5/2013 16:47

nice find rivaldo

[rivaldo] 03/5/2013 13:49

There's recent good news from HYG's investee Glide:



"Glide Pharma awarded contract from Pfenex Inc. to develop a solid formulation of recombinant anthrax vaccine
Published on April 30, 2013 at 7:04 AM·No Comments

Glide Pharma® today announced the award of a sub-contract from Pfenex Inc. to develop a solid formulation containing the recombinant Protective Antigen (rPA) from Bacillus anthracis expressed in Pfēnex Expression Technology™ suitable for delivery with the Glide SDI® (solid dose injector). This approach will address two important logistical constraints of the currently available vaccine, namely, long term stability during storage and ease of administration.

etc"

[rivaldo] 03/5/2013 13:01

The share price has been nudging upwards on a couple of recent buys, yet there's no real movement in SCLP. I always find it interesting when there's sudden activity for no apparent reason.

[rivaldo] 22/3/2013 08:20

Results out for 2012 - NAV at 31/12/12 of 118p per share:



Points that stood out:

- first sale of Scancell shares post year-end, which as a little top-slicing is fine by me
- Immunobiology large writedown which goes unremarked in the barrative
- Hallmarq could be a multibagger with the companion animal MRI scanner launching this year
- performance fees kicking in

[rivaldo] 27/12/2012 14:43

RNS out today appointing Panmure's as HYG's corporate broker - replacing Matrix from memory, so quite a step up!

PLans afoot for a marketing push or somesuch given the large discount (at present anyway) to NAV?

[rivaldo] 06/12/2012 08:54

Looks like good news from SCLP today. It's now 58p, so HYG's NAV is around 135p or so.

[stupidboypike] 14/11/2012 09:45

Just to remind myself!

NAV = 1.51 * (SCLP -32 ) + 94
Where SCLP is current SCLP share price.
So on 54p today we have a NAV of £1.27

Best regards

SBP

[stupidboypike] 14/11/2012 09:32

Just to remind myself!

NAV = 1.51 * (SCLP -32 ) + 94
Where SCLP is current SCLP share price.
So on 55p today we have a NAV of £128.73

[stupidboypike] 13/11/2012 12:43

Certainly makes it a lower risk way to own shares in SCLP.

Best regards

SBP

[rivaldo] 13/11/2012 11:58

SCLP is now above 50p. so HYG's NAV is around 125p-126p.

[rivaldo] 18/10/2012 11:44

Think so jonwig. Let's hope it continues.

I found some bits and pieces on other portfolio companies:



"Exosect to present latest developments in grain store bio-pesticide project at leading crop protection events Exosect will be presenting latest research findings at ABIM and CropWorld Global 2012

Winchester, UK – Exosect, a leading provider of Intelligent Pest Management solutions, today announced that it will be presenting a further update on its mycoinsecticide delivery project for insect control in grain stores at two upcoming industry events. Firstly at ABIM (Annual Biocontrol Industry Meeting) in Lucerne, Switzerland being held from 22 to 24th of October and at CropWorld Global, being held in London on 6th and 7th November.

Following the identification of a final formulation, Dr. Clare Storm, Exosect's research scientist leading the project, will be discussing the promising results of the first full scale field trials which took place this year in the UK."

And:



"New Product Development project launch linked to £250K TSB grant win
1 Jun 2012

Glide Pharma is pleased to announce the award of a £250,000 grant from the Technology Strategy Board (TSB) to accelerate the development of the patented Glide solid delivery system.

etc"

And:



"YFM in £3m round for ImmunoBiology
Source: UK unquote | 01 Oct 2012 |

YFM Equity Partners has contributed £900,000 as part of a £3m funding round for Cambridge-based biotech firm ImmunoBiology.

The GP invested in the firm, which it originally backed in 2000, through the British Smaller Companies VCT2 fund.

Existing investors Inventages Venture Capital Investments, Oxford VCTs and Hygea VCT also reinvested in the firm, alongside new investor Rockridge and a private individual.

The fresh capital will underpin human clinical trials for a universal meningitis vaccine.

etc"

[jonwig] 17/10/2012 13:24

Yes, that's not far adrift from the estimated figures posted here - and they are good enough to provide for performance fees.

And if they were selling anything (for any reason) I'm sure they would have to report in the IMS.

Discount around 30% - that's narrowing isn't it?

[rivaldo] 17/10/2012 12:45

New IMS out - HYG note that with SCLP at 47.5p (it's now 48p as I write) HYG's NAV is 121.5p after stripping out performance fees:

[stupidboypike] 15/10/2012 09:04

Many thanks.

Best regards SBP

[jonwig] 15/10/2012 08:59

SBP, go to



You'll need to register, but it's pain-free. (It's a site worth bookmarking anyway.)

[stupidboypike] 15/10/2012 08:12

jonwig, do you have a link/copy of the note?

[jonwig] 15/10/2012 07:46

Edison brought out a very brief note on SCLP last Friday. Worth being reminded that it's still 'high risk'.

[rivaldo] 15/10/2012 07:34

Buying coming in at almost 90p is good to see. SCLP is still holding up nicely.

[rivaldo] 11/10/2012 08:40

SCLP is holding up extremely well (now at around 56p), and there's buying coming in for HYG at 83.5p, though that's still well below the 130p or so NAV.

Probably worth having a look around HYG's other investments as I haven't done it for a while.

[rivaldo] 08/10/2012 08:16

HYG starting to react now. It'll be interesting to see how much the gap to the 135p or so NAV closes.

[stupidboypike] 08/10/2012 07:23

or 135p with SCLP at 59p!!!!

[rivaldo] 07/10/2012 17:40

Thx timbo (and sbp), good posts. I'll amend the thread header post when I get a minute.

For the record then, HYG's NAV is currently around 120p if SCLP is 49p.

[timbo003] 07/10/2012 17:14

SBP, yes thanks for doing the sanity check on the incentive fee. I think most shareholders will be delighted to see the BOD qualify for the incentive, myself included, furthermore, shareholders have been voting for the remuneration report year after year, so they cannot complain too much about that. I think it is important though, that we should fully understand the impact of the incentive on the value of our HYG shares and to assign a fair value accordingly.

[stupidboypike] 07/10/2012 16:08

timbo obviously too early for me on a Sunday morning! Yes I totally agree having read it again the later is a more likely explanation and therefore 5/6 is correct. You asked someone to check, I'm as sure as I can be that your figures are correct.
I take your point about generous incentive to management. However, out of my portfolio of around 10 VCTs which I've held for 10 years I think an 80p distribution would put this near the top (certainly if it still has a meaningful NAV after the distribution), so I am relatively content if that happens.

Best regards SBP

[timbo003] 07/10/2012 15:39

Hi SBP

Yes, performance fee is 20%, but is that 20% of the total distributions (inclusive), or is it 20% on top of total distributions to shareholders? The wording is a bit ambiguous, but I think it is the latter of the two, in which case the denominator should be 6 and the numerator should be 5 (just like calulating a price excluding VAT, when you only have the price plus VAT) for determining the correction factor to the NAV.

Yes, directors only get paid after shareholders get 80p distributions, I note that there is no inflationary adjustment to this figure to account for the time taken for this to happen (unlike some other VCTs, for example Core). The incentive structure seems more suitable for a fund designed for a limited life, i.e. shareholders get all their investment back after 5-6 years (like many of the Downing VCTs), or an EIS fund (which is designed to have a limited life and is not burdened with listing costs). As far as I am aware, Hygea is intended to be an evergreen VCT, not limited life.

I would anticipate that if SCLP does work out as we all hope and there is a trade sale at the sort prices being talked about, then Hygea may chose to pay out a special divi of say £2/share to HYG shareholders, in which case circa 60p/share would not be encumbered with the management incentive, the remaining 140p/share would be subject to the incentive payment, i.e. the BOD would receive 20% of 140p/share (28p/share), thereafter the BOD would receive a payment equivalent to 20% of all divis, even if in future their performance is rubbish. This doesn't seem like a particularly good incentive too me, what if there is a BOD change after they reach the 80p threshold for distributions, would new BOD members qualify for the incentive bonus going forward just for turning up to four board meetings a year and would they receive incentive payments for investment decisions made many years before they joined? if so, how can I apply!