Tekcapital – Update on Investee Company Progress
Shares continue to trade at a discount to NAV and the wider UK IP sector despite a string of positive updates
AIM listed Tekcapital is an international provider of technology and intellectual property investment services. The company’s objective is to create value from investing in new, university-developed intellectual properties and to produce returns through capital appreciation.
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Belluscura further funds product development
On 17th May, 33% owned medical device business Belluscura raised an additional c.$603,000 via a private placement of new shares and converted c.$78,000 of loans to equity. The funds will be used for further product development, specifically the innovative CURV™ portable oxygen concentrator (POC) and Snap III™ level of consciousness monitor. Belluscura has also hired an experienced VP of Operations to work on the FDA clearance process and launch of new products.
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Salarius strengthens management team and looks to the snack market
Low sodium salt products business Salarius has appointed experienced executives Eduardo Souchon and Steve McCready to its board of directors. In addition, former Fortune 500 executive Victor H. Manzanilla has been appointed as CEO. Salarius has confirmed it is looking at the possible development & launch of low-sodium salt and healthy choice snacks.
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Lucyd adds to management, opens e-shop & files new patent application
Next gen eyeglasses developer Lucyd has hired Gina Avila as Global Marketing Manager and Dr. Ira A. Clement as a science advisor. Lucyd’s eyewear e-shop was recently opened and provides cutting-edge spectacles, with a new patent application also filed to improve the utility of Augmented Reality glasses.
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Shares trade at a discount to NAV and the UK IP sector average
Tekcapital shares currently trade at a 35.6% discount to NAV as at 30th Nov 2017 and at a 44% discount to the wider UK IP sector average price-to-book value ratio. This, combined with additional value creation opportunities, leads us to retain our stance of Conviction Buy.
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RISK WARNING & DISCLAIMER
Tekcapital is a research client of Align Research. For full disclaimer information please refer to the last page of the full document. This investment may not be suitable for your personal circumstances. If you are in any doubt as to its suitability you should seek professional advice. This note does not constitute advice and your capital is at risk. This is a marketing communication and cannot be considered independent research.
| Year to Nov | 2014A | 2015A | 2016A | 2017A |
|---|---|---|---|---|
| Revenues ($m) | 0.21 | 0.41 | 0.76 | 7.26 |
| Pre-tax ($m) | (0.99) | (1.46) | (2.56) | 4.15 |
| EPS (c) | (5.0) | (4.9) | (6.3) | 10.8 |