IN BRIEF: Augmentum net asset value up; backs investing policy change

Augmentum Fintech PLC - investment company focussing on the fintech sector - Net asset value per ...

Alliance News 15 June, 2021 | 6:53AM
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Augmentum Fintech PLC - investment company focussing on the fintech sector - Net asset value per share rises 12% annually to 130.4 pence at March 31 year end, from 116.1p. "In what has been a challenging year for many businesses, the company's diverse portfolio of investments have performed well," Chair Neil England says. "Our share price has continued its strong recovery and appetite for the company has been high, as demonstrated by our consistently high premium to NAV since late 2020." Decides against dividend, unchanged year-on-year. Since year end, company has invested GBP15.5 million worth in two new companies and four existing investees.

Also proposes fundraise, targeting securing at least GBP40 million at 135.5p per share. Augmentum adds: "The company is considering the issue of new ordinary shares to fund additional investments with the aim of delivering further value for the company's shareholders." In addition, Augmentum proposes investing policy change. It eyes removing restrictions on company investing in seed stage businesses. Augmentum adds: "The aggregate value of seed stage investments will represent no more than 1% of net asset value at cost and it is the portfolio manager's current intention that initial investments into seed stage businesses will be relatively small in size, typically less than GBP100,000."

General meeting to take place on July 8 for shareholders to vote on investing policy change, as well as authority of board to issue 150 million new shares, more than 100% of current share capital, and to disapply pre-emption rights in respect to the new shares.

Current stock price: 136.50 pence, down 5.4% on Monday

Year-to-date change: up 1.3%

By Eric Cunha;

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Augmentum Fintech Ord 162.00 GBX 1.25

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