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Crystal Amber Fund Ltd on Wednesday said it would hold off on its realisation of Morphic Medical Inc until the firm’s Reset device has received US approval. The activist fund investing in small and mid-cap UK equities said Reset is expected to receive US Food and Drug Administration approval in 2028 or 2029. Patient enrolment for its US Step-1 trial is ongoing and is expected to complete in 2027. The US approval drive follows CE approval for Reset and successful procedures performed in the UK and India. MMI has also signed distribution agreements in Spain, Belgium, Netherlands and Czech Republic. Also on Friday, Crystal Amber said that investment manager Crystal Amber Asset Management (Guernsey) Ltd will resign. Since its launch in 2008, the fund said its manager has achieved outperformance of the Morning Star UK Small Cap Index over one, three, five and ten years. A new manager, Fund said, ‘can assist with the investment requirements and commercialisation of MMI and adopt a new strategy utilising the Fund’s cash resources to make new investments.’ Crystal Amber said this represents ‘the best course to enhance long-term shareholder value and liquidity.’ Concurrently, Crystal Amber has received a strategic proposal from private investment firm Tarncourt Capital Ltd. The proposal relates to the investment management of the Fund and the implementation of a refreshed investment strategy focused on high-conviction, deep value opportunities across the UK and Europe with a route to exit via IPO or sale. It also pledges continued support for MMI. Saba Capital Management LP, which holds 26.4% of total voting rights and Merseyside Pension Fund, holding about 20.6%, have indicated their support of the proposal. An extraordinary general meeting on the matter will be convened in due course. Crystal Amber said the new strategy will reduce the concentration of its portfolio, allowing the Fund to increase diversification and retain its fund status, thus reducing risk to the Fund and its shareholders. ‘In addition, by securing the ongoing management of the Company’s investment in MMI and creating a more diversified portfolio until the Fund realises value from MMI, the Proposal should enable the Fund to attract new shareholders and improve the liquidity in its shares, whilst also achieving cost efficiencies versus remaining an investment company with predominantly one asset,’ it added. The Crystal Amber board believes that this new strategy will be in the best interests of the Fund and shareholders. Additionally, Tarncourt has agreed in principle to acquire about 2.82 million ordinary shares in the company from Saba. Following this transaction, Tarncourt would have an equity interest in the Fund of about 4.5% and Saba, 20.9%. Tarncourt’s proposal is conditional on the completion of due diligence by the Fund and Tarncourt as well as the agreement of final terms, and the approval of shareholders at the extraordinary general meeting. Amid these developments, MMI is in discussions with several potential investors, including some large, multinational medical device companies. Tarncourt also brings access to potential investors in MMI, Crystal Amber said. Crystal Amber Fund closed up 0.3% at 151.00 pence in London on Friday. Shares are up 31% over the past year. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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