|
Crystal Amber Fund Ltd on Friday said it had begun consulting its largest shareholders on the firm’s future, after reporting a higher net asset value at its financial year-end. The London-based activist fund investing in small and mid-cap UK equities posted a 2.6% rise in NAV per share, which was 178.9 pence at June 30, compared to 173.90p a year prior. Crystal Amber attributed this largely to share buybacks. During the year that ended June 30, it repurchased 7.7 million shares, which is around 10.58% of its capital, at an average price per share of 117.34p, ‘which had the effect of increasing the year end NAV per share by 2.6%’ according to the firm. It declared no final dividend in financial 2025, unchanged on-year. The company’s shares were flat at 150.00 pence on Friday morning in London, having risen 33% in the past year. Crystal Amber noted it has completed a debt-to-equity conversion related to one of its investees, Morphic Medical Inc. Boston, Massachusetts-based MMI is the developer of EndoBarrier, now called Reset, a temporary implant which mimics the effects of gastric bypass surgery. It is marketed as an alternative to GLP-1 drugs for diabetes and weight control. The device’s CE mark certification, which permits sales in Europe, was withdrawn in 2017, but reawarded in July this year. The activist investor said it has been MMI’s sole funding provider since 2020, but that MMI has entered talks with other possible investors, ‘including some large multinational medical device companies.’ Crystal Amber is now consulting shareholders on the firm’s next steps. ‘Last year, I wrote that the board would consult its larger shareholders and/or make arrangements to seek shareholder approval on the future strategy of the company, including steps that might be necessary to maximise the opportunity to realise value from the remaining assets of the company,’ said Chair Christopher Waldron. ‘I added that as MMI was very likely to be the last investment held by the company, there would need to be a reassessment of the best structure and management through which to hold this investee company to maximise its potential in a cost-efficient manner. The board also needs to weigh carefully the essential funding needs of MMI against the desire to make further distributions to shareholders. This process of consultation has begun and will continue over the coming weeks.’ An independent valuation of MMI commissioned by Crystal Amber indicated that the fund held $107.2 million, or £78.1 million, equity interest in MMI, as at June 30. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
