REG - Mindflair PLC - Additional Investment in Sure Ventures plc

MindflairAnnouncement

05/08/2024 07:00

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RNS Number : 1022Z  Mindflair PLC  05 August 2024

5 August 2024

Mindflair plc

("Mindflair" or the "Company")

Additional Investment in Sure Ventures plc

Mindflair plc, the company that invests in next-generation technology focused
on AI, announces that it has agreed to subscribe £300,000 for 315,790 new
shares (the "Subscription") in Sure Ventures plc ("SV plc") at a price of 95
pence per share.

Prior to the Subscription, Mindflair held 1,501,000 ordinary shares in SV plc,
representing a 20.5% shareholding  which it acquired in February 2021 through
the issue of its own equity at a price of 13.6 pence per share.

SV plc's principal asset is a 25.9 % shareholding in Sure Valley Ventures Fund
("SVV1").  Mindflair already has a 13% direct interest in SVV1 and a 5.3%
indirect interest in SVV1 via its current holding in Sure Ventures plc.  SVV1
is both closed to new investment and has entered its realisation phase.  In
addition, the Subscription has also increased the Company's indirect interest
in the Sure Valley Ventures UK Software Technology Fund ("SVV2").

The recent announcement of the sale of one of SVV1's portfolio companies,
Landvault, in which SVV1 has a 7% interest, to Infinite Reality for US$450
million, could potentially generate a very significant uplift in the carrying
value of this investment with a realisation expected to follow thereafter if
this company implements its IPO on Nasdaq.  Based on the figures set out
above, this disposal generated a circa 470% uplift on SVV1's carrying value of
Landvault as at 31 December 2023 and an increase in the net asset value of
SVV1 compared to the value at 31 December 2023.  Infinite Reality is now also
on the Crunchbase Unicorn Board list of the most valuable private companies in
the world. In addition, SVV1 has a number of other exciting portfolio
companies which have the potential to generate significant returns.

As at 2 August 2024, SV plc traded at a slight premium of circa 13% to its
last reported NAV of 82.5 pence per share as at 31 March 2024, however, this
NAV excludes the very significant uplift to NAV expected as a result of the
sale of Landvault.  A recent RNS issued by SV plc on 11 July 2024 estimates
that its NAV could increase by 60% to 70% as a result of this disposal.
Furthermore, due to SV plc being an investment trust, it is required to
distribute a significant proportion of investment funds realised to its
investors thereby potentially resulting in a substantial cash inflow to
Mindflair from SV plc. For the year ended 31 March 2024 SV plc made a loss of
approximately £2.5 million.

The Subscription will increase the Company's shareholding to 23.8% in SV plc
and could increase both book profits and cash returns that may be realised by
Mindflair both in the short and medium term from its increased exposure to
SVV1.

SVV1 is a venture capital fund, investing in a range of software companies
with a focus on companies in AI and ML, Immersive Tech, Metaverse and
Cybersecurity sectors. The fund is run by the SVV team which has been highly
successful in achieving a number of cash realisations from, and upward
revaluations of, companies in the SVV portfolio.  SVV1, which includes a
cornerstone €10 million investment from Enterprise Ireland, was launched in
March 2017.  SVV1 is currently in its investment realisation phase.

Nicholas Lee, Director of Mindflair, commented:

"Given the potential returns that may be generated from SVV1, both from the
disposal of Landvault and various of its other investments, it makes sense, at
this time, for Mindflair to increase its exposure to this fund by increasing
its shareholding in SV plc."

This announcement contains inside information for the purposes of the UK
Market Abuse Regulation and the Directors of the Company are responsible for
the release of this announcement. The person who arranged for the release of
this information is Nicholas Lee, a director of the Company.

 

Enquiries:

 

 Mindflair plc                       Tel: +44 (0) 20 3368 8961

 Nicholas Lee, Director

 Nominated Adviser                   Tel: +44 (0) 20 7213 0880

 Cairn Financial Advisers LLP

 Liam Murray / Ludovico Lazzaretti
 Broker                              Tel: +44 (0) 20 7469 0935

 Peterhouse Capital Limited          Tel: +44 (0) 20 7469 0936

 Duncan Vasey/Lucy Williams

 

Notes to Editors

Mindflair plc (AIM: MFAI) is an investment company providing investors with
access to a portfolio of next generation technology businesses focused on AI
with significant growth potential. The Company is building an investment
portfolio of high-tech businesses focused on Artificial Intelligence, across
such areas as Internet of Things, Cyber Security, Machine Learning, Immersive
Technologies and Big Data, which the Board believes demonstrate evidence of
traction and the potential for exponential growth, due to increasing global
demand for development in these sectors. For further information, visit:
http://www.mindflair.tech/ (http://www.mindflair.tech/) .

Sure Valley Ventures (www.surevalleyventures.com
(http://www.surevalleyventures.com) ) ("SVV") is a venture capital firm that
invests in early-stage AI software companies in the UK and Ireland. Investing
in AI since the firm's inception in 2017, SVV has a strong track record of
accelerating the growth of private AI companies through to Series A and
beyond.

 

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