Interim report

2 June 2021

Intuitive Investments Group plc

Interim report for the period from incorporation to 31 March 2021

Intuitive Investments Group plc (AIM: IIG) ("IIG" or the "Company"), a closed-end investment company focussed on the life sciences sector, announces its maiden interim results for the period from incorporation to 31 March 2021.

Financial highlights

·    Successful launch on AIM on 14 December 2020:

o  opening net assets at launch £7.58 million after the costs of admission to AIM;

o  net asset at period end of £7.93 million; and

o  net asset of £8.39 million as at 1 June 2021.

·    New investments valued at £3.93 million as at 31 March 2021 in a diversified portfolio of high growth life sciences companies.

·    Cash:

o  £3.90 million as at 31 March 2021

o  £2.50 million as at 1 June 2021

·    NAV per share price increase from flotation:

o  4.6 per cent. for the three and half months to 31 March 2021; and

o  10.7 per cent. for the five and half months to 1 June 2021 including the revaluation of the listed portfolio.

Operational highlights

·    Reviewed over 105 potential investee companies.

·    Investment in 10 companies of which; 5 publicly traded, 2 later stage/pre-IPO, and 3 private companies.

·    Post period investment in 4 companies of which; 2 publicly traded and 2 private companies.

David Evans, Chairman of Intuitive Investments Group plc commented:

"The Board, Investment Team and Advisory Panel have been extremely active for the period from flotation. Our rate of capital deployment has been ahead of our expectation at the time of flotation, and we expect to be fully deployed by the end of June. We are pleased with the companies we have been able to invest in and believe they are poised for high growth. Overall a lovely job."

For further information, please contact:

About Intuitive Investments Group plc

The Company is a newly established investing company, seeking to provide investors with exposure to a portfolio concentrating on fast growing and/or high potential Life Sciences businesses operating predominantly in the UK, continental Europe and the US, utilising the Board's experience and in particular that of the Chairman, David Evans, to seek to generate capital growth over the long term for shareholders.

Chairman's statement

I am pleased to present the inaugural interim report for Intuitive Investments Group plc. This report covers the period from incorporation on 11 June 2020 to 31 March 2021. The Company's shares were admitted to trading on AIM on 14 December 2020, which is when we commenced investing. I would particularly like to thank the investors who supported the flotation.

Investment activity

The period has been active with the Investment Team, which comprises Robert Naylor, Stewart White and myself, having made ten investments in life sciences companies with support from the Advisory Panel and with input and oversight from the Board.

These investments consist of:

·    five publicly traded companies at a cost of £1.17 million;

·    two private later stage / pre-IPO companies at a cost of £1.73 million; and 

·    three private companies which are in the main series A and B investments at a cost of £577,000.

After the end of the period a further three investments have been made, two in quoted companies at an aggregate cost of £500,000 and two private companies at an aggregate cost of £850,000.

In accordance the Company's valuation policy the unlisted companies are held at cost.  The publicly traded companies have been revalued to middle market price. As at market close on 31 March 2021 the publicly traded companies show an unrealised gain of £422,000 or 36.0 per cent. on capital invested and as at market close on 1 June 2021 show an unrealised gain of £931,000 or 55.6 per cent. on capital invested.

A summary of the Company's portfolio is contained below.

Financial performance

The Company raised £8.08 million at flotation with advisers' fees of £507,000, therefore there was £7.58 million for investment and the ongoing costs of the Company. From the proceeds of the flotation, we have invested a total of £3.48 million with cash and cash equivalents at the period end of £3.90 million. Post period end we have invested a total of £1.35 million and we anticipate being fully invested by the end of June 2021.

There is other income from the interest from the convertible loan notes in aggregate of £29,000. The running costs of the business were £127,000 for the period. These are mainly fixed and we anticipate these becoming a proportionally smaller as a percentage of the NAV as the assets under management grow.

The NAV per share increased from flotation by:

·    4.6 per cent. for the three and half months to 31 March 2021; and

·    10.7 per cent. to 1 June 2021 including the revaluation of the listed portfolio.

People

We have an excellent Board and Advisory Panel, which I believe have the necessary skills to substantially grow the Company. Robert Naylor, CEO, started working with us on 21 February 2021. I want to take this opportunity to thank the team for their commitment and hard work during this initial period.

Strategic focus

Sector

Our investment thesis remains unchanged as set out in our admission document. The Covid-19 pandemic has elevated the global status and awareness of life science companies in relation to viral testing and vaccine development and has meant that the wider life sciences subsectors of diagnostics, medical devices, pharmaceuticals and biotechnology are now centre stage. In particular:

·    diagnostic responsiveness will be critical in the detection and prevention of disease;

·    national manufacturing capabilities in vaccine and diagnostics are strategic assets;

·    low cost does not necessarily represent best value;

·    health authorities, such as the UK NHS, cannot address challenges alone; and

·    expatriation of the UK's IP assets is a strategic threat, particularly in life sciences.

Stage of investment

As we commence investing, the Investment Team perceive there is a lack of continuity of funding for life sciences companies. Early-stage companies (seed and series A) are able to attract investment which is due to tax driven schemes such as EIS and VCT, angel groups and the relatively small amounts of investment for growing life sciences companies to get started.

However, many life science companies find it harder to attract further substantial capital. This can be for a number of reasons, but include milestones have been missed, particularly those in relation to partnering with large life science companies, over ambitious valuations at a previous round, scarcity of providers of substantial tranches of investment, particularly series B and beyond. This is an area which the Investment Team perceives there is potential for the attractive risk adjusted returns by providing investee companies the capital to allow them to succeed.

The other stage of investment where the Investment Team perceive there are attractive risk adjusted returns is later stage and pre-IPO investment, where the wider team has proven track record of taking companies to public market. We have two pre-IPO investments which are optimistic of floating before the end of the calendar year.

As the assets under management grow it is likely direct investments into publicly traded investments will decline as a proportion of overall portfolio. These investments have offered excellent short-term returns and allowed IIG to gain sector exposure rather than investing wholly in private life sciences companies.

Pipeline opportunities

IIG has been inundated with enquiries for funding and corporate advice. The Investment Team have vetted over 105 companies. The current pipeline has opportunities for over £80 million of investments and this continues to grow. There are a number of near-term pipeline opportunities as well as the possibility for follow on investment of £5 million within the existing portfolio.

Outlook

We are continuing to execute our pipeline with a likelihood of two, possibly three, unlisted investments to be made in the second-half of the year. We recognise that our current capital base is small and we are exploring avenues to expand the funds available to us directly and indirectly with a greater emphasis on the latter.

We are on a journey, much of which is uncharted. The first stage has been successfully achieved. The next stages will present challenges, but I believe we have the team and advisers in place to meet these head on. I look forward to providing you with further updates as our journey progresses.

Portfolio Review

Listed investments as at 31 March 2021

Post period end two further listed investments were made in Polarean Imaging plc and in Trellus Health plc at both a cost of £250,000.

Listed investments as at 1 June 2021

Unlisted investments including investments made after the period end

Pre IPO and later stage investments

Light Science Technologies Holdings Limited ("LST")

Initial investment of £1 million by way of convertible loan note, valued at cost.

11.9% of NAV as at 1 June 2021

LSTis the holding company of a electronics manufacturing division ("CEM"), UK Circuits and Electronics Solutions Limited, and a controlled environment agriculture ("CEA") division, Light Science Technologies Limited, seeking admission to AIM in the coming months.

UK Circuits was founded in 1997 and is a contract electronics manufacturer strong revenue and cash generation. UK Circuits and Electronics Solutions Limited has manufacturing facilities in Manchester and designs, manufactures and tests high-quality CEM products used in a broad range of sectors.

Light Science Technologies Limited was founded in 2019 and facilitates the Company's highly prospective CEA operations. Light Science Technologies Limited has laboratory facilities in Derby, England, enabling the group to design, test and provide innovative CEA products, with a longer-term development application in non-invasive medical diagnostics. Further information on LST can be found at the company's website: https://lightsciencetech.com .

BioQ Pharma Incorporated ("BioQ")

Investment of US$1 million by way of unsecured convertible loan notes, valued at cost.

8.7% of NAV as at 1 June 2021

BioQ is a well-established, commercial-stage, medical device and pharmaceutical company, addressing the infusible drugs market. BioQ's proprietary Invenious^TM platform comprises a "connect-and-go" drug-device system combination, which can be utilised to improve the delivery of infusible medicines.  BioQ's platform includes a bespoke unit-dose delivery solution for infusible drugs, whereby a diluent delivery system and administration line are combined in one self-contained, ready-to-use presentation. The key benefits of the platform include reduced cost and complexity compared to current infusion techniques. Further information on BioQ can be found at the company's website: www.bioqpharma.com .

Series A and B

Micrima Limited ("Micrima")

Investment of £200,000 by way of convertible loan note valued at cost.

2.4% of NAV as at 1 June 2021

Micrima is a commercial stage company which has developed a new imaging method, the MARIA® system, based on radiofrequency technology to improve early diagnosis of breast cancer. Micrima has reached a significant development milestone with initial sales of its novel breast imaging technology. Micrima is now set to set to embark on a full commercial launch with distribution already established in Germany, Austria and Switzerland through an agreement with Hologic, Inc. More information on Micrima can be found at https://micrima.com/ .

CardiNor AS ("CardiNor")

Investment of £127,000 in ordinary shares, valued at cost.

1.5% of NAV as at 1 June 2021

CardiNor is a Norwegian biotech company established in June 2015 to commercialise the development of secretoneurin ("SN"), an importjant new biomarker for cardiovascular disease ("CVD"). SN is the only biomarker shown to be associated with biological processes linked to cardiomyocyte handling. This unique biological function explains why SN presents as an independent and strong predictor of mortality in all major patient cohorts, including ventricular arrhythmia, acute heart failure, acuterespiratory failure patients with CVD and severe sepsis. CardiNor has completed development of a research assay based on immunoassay technology to measure SN in blood and the assay is under further clinical development, including to obtain a CE mark. More information can be found at: https://cardinor.com/ .

Axol Bioscience Ltd ("Axol")

Investment of £250,000 to acquire A ordinary shares, valued at cost.

3.0% of NAV as at 1 June 2021

Axol produces high quality human cell products, particularly in relation to pluripotent stem cell (hiPSC) and critical reagents such as media and growth supplements, which are sold to medical research and drug discovery organisations. Axol also provides contract research for example customising cell lines for customers, such as reprogramming and differentiation. Censo is a specialist contract research organisation with products, complementary to those produced by Axol, in complex cell biology, specialising in human neurodegenerative, neuroinflammatory and inflammatory disease models. The Chairman of Axol is Jonathan Milner, who is the company's co-founder and was previously deputy chairman of Abcam plc.

Altair Medical Ltd ("Altair"), post period end investment

Investment of £350,000 in new ordinary shares, valued at cost.

4.2% of NAV as at 1 June 2021

Altair, which was incorporated in February 2018, is developing an innovative remote respiratory monitoring platform comprising a small, chest-worn biosensor and AI-driven data analysis/alerting software for the early detection, prediction and prevention of adverse events in respiratory patients, both in hospitals and at home. In 2020, Altair was awarded the Breakthrough Medical Device designation from the U.S. Food and Drug Administration for the development of the device, which is designed to monitor breathing in real-time to a clinical standard of care¹.  

The specially designed wireless biosensor is one of the smallest available, and transmits data to the cloud using a data hub or smartphone, alerting the patient, their household members, doctor, nurse or emergency services where life-threatening changes occur. Altair's technology will be able to accurately monitor large numbers of patients in any location at any time. Additional information relating to Altair can be found at: https://www.altairmedical.com/home.html.

1 - performance characteristics are yet to be clinically validated.

The Electrospinning Company Ltd ("TECL"), post period end investment

Investment of £500,000 to acquire ordinary shares, valued at cost.

6.0% of NAV as at 1 June 2021

TECL was established in 2010 as a spin-out by the UK Science and Technology Research Council (STFC). TECL has a technology platform built around the process of electrospinning, a technique for production of micro- and nano-fibre biomaterials from a variety of natural and synthetic polymers, and a suite of post-processing technologies to convert the biomaterials into medical device components. The core business is the sale of product development and manufacturing services to medical device companies. TECL is also using its know-how to develop proprietary materials for targeted out-licensing opportunities, aiming to capture more of the end-market value created by its innovations and expertise. Further information on TECL can be found on the company's website https://www.electrospinning.co.uk/ .

Intuitive Investments Group Plc

Statement of Comprehensive Income

For the period to 31 March 2021     

Intuitive Investments Group Plc

Statement of Financial Position

As at 31 March 2021