GCIRiverFort posts £4.7m NAV, advances wellness sector acquisition in H1 2024
() , an AIM-listed investment company, announced its interim results for the 6 months to June 30, 2024. During the period, the company successfully redeemed its outstanding debt and equity-linked portfolio for cash.
Total NAV was £4.7m on June 30, 2024. NAV per share was 0.6p, principally represented by cash, compared to a pre-suspension price of 0.22p/share. Trading in was suspended on AIM on March 22, 2024 pending the publication of an admission document related to its potential acquisition of S-Ventures (SVEN).
RiverFort also noted a profitable partial realisation of its investment in Smarttech247 during the half. Related to the acquisition of SVEN, announced a strategic shift toward becoming a listed operating company in the wellness sector to generate further value.
had a cash balance was c. £2.9m at period-end.
Philip Haydn-Slater, Non-Executive Chairman, commenting: "As explained in the company's full year results for the year to 31 December 2023, the Board has been conscious that small investment companies listed on AIM have become increasingly less attractive to investors and that the company's share price had continued to trade at a significant discount to its underlying net asset value.
In early 2024, it was decided to redeem part of its outstanding debt and equity linked portfolio in order to generate cash. An opportunity was then identified where, subject to shareholder approval, RGO would become a focused operating business by acquiring the trading assets of S-Ventures, a company listed on the AQSE Growth Market and active in the wellness sector, for circa £3.5 million in new shares in RGO."
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RiverFort has traditionally invested in junior listed companies by way of debt or equity-linked debt investments. Returns have principally come through a combination of fees, interest, and other equity-linked or performance-based instruments. It has also sought pre-IPO opportunities that are attractively valued, where there is a clear path to a liquidity event.
Since year-end FY23, 's debt and equity-linked portfolio has been redeemed for c. £2.2m in cash, and the company has focused on becoming an operator in the wellness sector through the abovementioned acquisition of S-Ventures (SVEN). now comprises cash plus a small number of investments, notably in listed companies Smarttech247 and Mindflair, and is therefore well-positioned to embark on the new strategy.
During the period, disposed of around half its stake in Smarttech247, boosting its cash balance to £2.9m, up from £1.1m at year-end FY23. This should provide it with sufficient working capital to advance its acquisition of S-Ventures and scale the combined business. Following the move, will become an operating company with good potential for growth and value generation. At the same time, SVEN's operations will benefit materially from the additional funding and access to AIM.
As Riverfort's £3.5m acquisition of SVEN constitutes a reverse takeover under AIM rules, shares have been suspended from trading since March 2024 pending due diligence. The process is advancing at pace and expected to complete in Q4 2024.
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