Mindflair shares soar as investee Infinite Reality boosts valuation to $12bn
() , an AI-focused tech investment company, noted an announcement by its indirect investee Infinity Reality that the latter has raised additional equity of US$3 billion, increasing its valuation to US$12.25 billion.
Additionally, Infinite Reality announced a new 5-year deal with Google Cloud and the launch of FIM SGP-Verse in collaboration with Warner Bros Discovery Sports.
Infinity Reality (IR) is a digital media and ecommerce company that acquired Landvault, an immersive technology company, in July 2024 in an all-share deal valued at US$450m. The SVV1 fund, through which Mindflair invests, holds equity in IR as a result of the transaction. At the time of the acquisition, SVV1 had a 7% shareholding in Landvault. IR's publicly declared valuation at that time, following a US$350m funding round, was US$5.1 billion.
Mindflair has a 13% direct interest in SVV1. Mindflair also has a 6.1% indirect interest in SVV1 via its 23.8% holding in Sure Ventures, which runs the SVV funds and has a 25.9% holding in SVV1. Consequently, Mindflair has a combined direct and indirect interest in SVV1 of c. 19.1%.
View from Vox
Mindflair's indirect investee Infinity Reality has announced a significant boost to its valuation, driven by a substantial cash investment. This is excellent news for as it will materially boost the value of the asset's future realisation. shares nearly doubled on the announcement in late trade on January 9, 2025.
In its most recent interim results for 1H24, Mindflair reported a 28% increase in NAV, bringing its NAV/share to 2.70p. At its current share price of 0.633p, Mindflair is trading at a significant discount to NAV, presenting an attractive opportunity for growth investors. In our estimation, is presently undervalued, given the scope for material valuation uplift of the companies within its portfolio, evidenced by today's announcement. Continued projected growth of the AI sector, and progress reported so far across the SVV1, SVV2 and SVV3 funds through which invests, have bolstered investor confidence in the company's portfolio.
Last year, Mindflair prudently increased its stake in Sure Ventures, and in turn the SVV1 fund, which was significantly bolstered by the sale of Landvault to IR and now the boost to the latter's valuation. Mindflair increased its shareholding in Sure Ventures from 18% to 23.8%, which should in turn increase book profits and cash returns realised by in the short-to-medium term from further expected realisations in SVV1 (now in realisation phase), as well as increased exposure to the AI-heavy SVV2.
Follow News & Updates from Mindflair:
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.