23 October 2018
TMT INVESTMENTS PLC
("TMT" or the "Company")
Portfolio update
TMT Investments PLC (AIM: TMT.L), the venture capital company investing in high-growth technology companies across a number of core specialist sectors, is pleased to announce the following portfolio update.
Following the publication of the Company's interim results in August 2018, TMT has continued its investment programme by employing the proceeds from the equity placement that took place in March 2018.
eAgronom
In August 2018, the Company invested US$234,158 in eAgronom (https://eagronom.com/en/), an Estonian SaaS ("software as a service") company, built by farmers for farmers, which helps farmers plan farm activities, manage their administration, be notified about potential regulatory violations, and manage personnel and related activities.
FriendlyData
In July 2018, the Company invested US$100,000 in FriendlyData (www.friendlydata.io), a natural language search interface for enterprise data. In October 2018, FriendlyData was acquired by NYSE-traded ServiceNow (NYSE:NOW), thus making TMT's investment in FriendlyData the quickest profitable exit for the Company to date. Given such a short investment period, TMT's return from this investment will be minimal, but the case serves as yet another testament to TMT's ability to identify highly promising start-ups, even at very early stages.
Taxify
Taxify, a leading international ride-hailing company (www.taxify.eu), continues to grow rapidly. In TMT's interim report published in August 2018, we referred to Taxify's operating in 47 cities internationally. Taxify has now been launched in 57 cities worldwide and keeps growing its turnover and revenue at triple digits.
Token/pre-ICO trials
In order to keep abreast of the developments in the blockchain space, in addition to the previously announced US$300,000 participation in the pre-ICO of Telegram, TMT has recently invested $100,000 in two other pre-ICO transactions. Both pre-ICO investments were successful, and the Company has already generated a cash profit from those transactions, with some tokens still unrealised.
In addition, Mainframe, one of TMT's previous investees, which the Company in 2017 had previously written down the value of its investment to zero, has recently completed a successful ICO. Accordingly, TMT expects to recover some of its original investment in Mainframe by disposing of the tokens that the Company received from Mainframe, although it is too early to estimate the likely value of this investment.
Bonus Plan
As announced previously the Company's existing Bonus Plan has been extended for a further three years through to 30 June 2021 on the same terms, with slightly amended initial allocations of the bonus pool among the current participants. Under the Bonus Plan, subject to achieving minimum hurdle rate and high watermark conditions in respect of the Company's NAV, the beneficiaries of the Bonus Plan will receive an aggregate annual cash bonus equal to 7.5% of the net increases in the Company's NAV, adjusted for any changes in the Company's equity capital resulting from issuance of new shares, dividends, share buy-backs or similar corporate transactions in each relevant year.
The beneficiaries of the Bonus Plan include Alexander Selegenev and Yuri Mostovoy who are directors of the Company, and German Kaplun, a Substantial Shareholder. As Directors or a Substantial Shareholder, their participation in the Bonus Plan represents a Related Party Transaction under the AIM Rules for Companies. The Directors, excluding Alexander Selegenev and Yuri Mostovoy, consider, having consulted with the Company's Nominated Adviser Smith & Williamson Corporate Finance, that the terms of the extension to the Bonus Plan are fair and reasonable insorfar as the Company's shareholders are concerned.
Alexander Selegenev, Executive Director of TMT, commented:
"Following our successful capital raise in March 2018, we were able to intensify our investment programme and expect to complete a number of further investments in the coming weeks.
The Company's star portfolio companies continue to grow well, and we expect a number of positive revaluations across our portfolio in the coming months.
TMT shares trade at a significant discount to the Company's latest announced bonus-adjusted NAV of US$2.75 per share (as of 30 June 2018)."
For further information contact:
TMT Investments PLC Alexander Selegenev Executive Director www.tmtinvestments.com |
+44 1534 281 800 (Computershare - Company Secretary) [email protected] |
Smith & Williamson Corporate Finance Ltd Nominated Adviser Russell Cook David Jones Ben Jeynes |
+44 (0)20 7131 4000 |
Hybridan LLP Broker Claire Louise Noyce |
+44 20 3764 2341 |
Kinlan Communications David Hothersall |
+44 20 7638 3435 [email protected] |
About TMT Investments PLC
TMT Investments PLC invests in high-growth technology companies across a number of core specialist sectors and has a significant number of Silicon Valley investments in its portfolio. Founded in 2010, TMT has invested in over 40 companies to date and has latest announced net assets of US$82m. The Company's objective is to generate an attractive rate of return for shareholders, predominantly through capital appreciation. The company is traded on the AIM market of the London Stock Exchange. www.tmtinvestments.com
