REG - Chrysalis Investment - Disposal and Liquidity Update

Chrysalis InvestmentsAnnouncement

03/04/2025 14:45

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RNS Number : 5777D  Chrysalis Investments Limited  03 April 2025

The information contained in this announcement is restricted and is not for
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The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 which forms part of domestic law in the United Kingdom
pursuant to The European Union Withdrawal Act 2018, as amended by The Market
Abuse (Amendment) (EU Exit) Regulations 2019.

 

 

3 April 2025

 

 

Chrysalis Investments Limited ("Chrysalis" or the "Company")

 

Disposal and Liquidity Update

 

Cognitive Logic, Inc.

 

The Company is pleased to confirm that it has agreed the sale of its entire
holding in Cognitive Logic, Inc. ("InfoSum") to WPP plc. Chrysalis will
shortly receive cash proceeds from the sale of approximately $63 million (£48
million). The proceeds will be received by Chrysalis in one instalment, with
no amounts deferred or held in escrow. Chrysalis first invested in InfoSum in
August 2021.

 

Details of the transaction remain confidential, including the total
consideration paid. However, the distribution to Chrysalis represents a 16.4%
uplift to the Company's carrying value of the asset as at 31 December 2024,
which equates to a NAV uplift of approximately 1.23 pence per share.

 

InfoSum will join GroupM, WPP's media investment group, to help power the
creation of new generation AI-enhanced marketing solutions for its clients,
delivered through InfoSum's leading secure data infrastructure.

 

Liquidity

 

As of 31 March 2025, the Company had gross liquidity of approximately £116
million (equating to £46 million of net liquidity after deduction of loan
balances), which comprises a position in Wise plc of approximately £2.8
million, with cash and equivalents making up the balance. Receipt of proceeds
from the sale of InfoSum would see this rise to approximately £164 million
(£94 million, net).

 

Richard Watts and Nick Williamson (Managing Partners of the Investment
Adviser) comment:

 

"The sale of InfoSum to WPP plc represents the Company's third disposal within
the last nine months, raising total gross proceeds of approximately £184
million. These three transactions generated an average money multiple of 1.33x
and were completed at an average premium to the prevailing carrying value of
21.0%. This is strong evidence of the strategic value of the Company's
portfolio assets and the robustness of the valuation process. We extend our
congratulations to the entire InfoSum team for successfully navigating this
exit and wish them all the best for the future."

 

 

-ENDS-

 

 For further information, please contact

 Media                                     +44 (0) 7826547304

 Montfort Communications:                  chrysalis@montfort.london

 Charlotte McMullen / Imogen Saunders

 Investment Adviser

 Chrysalis Investment Partners LLP:        +44 (0) 20 7871 5343

 James Simpson

 G10 Capital Limited (AIFM):               +44 (0) 20 7397 5450
 Maria Baldwin

 Panmure Liberum:                          +44 (0) 20 3100 2222

 Chris Clarke / Darren Vickers

 Deutsche Numis:                           +44 (0) 20 7260 1000

 Nathan Brown / Matt Goss

 IQEQ Fund Services (Guernsey) Limited:    +44 (0) 1481 231852

 Aimee Gontier / Elaine Smeja

 

LEI: 213800F9SQ753JQHSW24

A copy of this announcement will be available on the Company's website at
https://www.chrysalisinvestments.co.uk
(https://www.chrysalisinvestments.co.uk)

The information contained in this announcement regarding the Company's
investments has been provided by the relevant underlying portfolio company and
has not been independently verified by the Company. The information contained
herein is unaudited.

This announcement is for information purposes only and is not an offer to
invest. All investments are subject to risk. Past performance is no guarantee
of future returns. Prospective investors are advised to seek expert legal,
financial, tax and other professional advice before making any investment
decision. The value of investments may fluctuate. Results achieved in the past
are no guarantee of future results. Neither the content of the Company's
website, nor the content on any website accessible from hyperlinks on its
website for any other website, is incorporated into, or forms part of, this
announcement nor, unless previously published by means of a recognised
information service, should any such content be relied upon in reaching a
decision as to whether or not to acquire, continue to hold, or dispose of,
securities in the Company.

The Company is an alternative investment fund ("AIF") for the purposes of the
AIFM Directive and as such is required to have an investment manager who is
duly authorised to undertake the role of an alternative investment fund
manager ("AIFM"). The AIFM appointed is G10 Capital Limited (part of the IQEQ
Group).

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