Amoeba — Biocontrol plant paves path to commercialisation

Amoeba (PAR: ALMIB)

Last close As at 18/05/2024

EUR0.49

0.00 (−0.80%)

Market capitalisation

EUR25m

More on this equity

Research: Industrials

Amoeba — Biocontrol plant paves path to commercialisation

Thus far, FY23 has marked a year of successful advancement for Amoéba: (1) the development of its biocontrol plant is ongoing, poised to achieve production of 40 tonnes per annum of W. magna lysate; (2) a third scientific article has been published, which highlights the efficacy of its biocontrol product; and (3) the company has announced a potential further application for W. magna lysate in cosmetic skincare. The new application will not hinder advancement of the biological fungicide product. H123 saw the widening of EBIT losses by €1.0m y-o-y to €3.9m, primarily attributable to increased industrial deployment costs and financing fees; Amoéba plans to seek €45m financing to support its expansion and operations.

Natalya Davies

Written by

Natalya Davies

Analyst

Industrials

Amoéba

Biocontrol plant paves path to commercialisation

H123 results

Industrial engineering

16 November 2023

Price

€0.4

Market cap

€19m

Net cash (€m) at 30 June 2023 (including finance leases)

2.5

Shares in issue

46.3m

Free float

97.0%

Code

ALMIB

Primary exchange

Euronext Growth

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

(0.4)

(32.7)

(53.0)

Rel (local)

(3.2)

(31.9)

(56.2)

52-week high/low

€0.94

€0.39

Business description

Amoéba is developing biological fungicides for treating diseases such as mildews and rusts, which have a major economic impact on the production globally of a wide range of crops. These novel fungicides are based on the characteristics of the Willaertia magna C2c Maky amoeba.

Next events

FY23 results

April 2024

Analysts

Natalya Davies

+44 (0)20 3077 5700

Andrew Keen

+44 (0)20 3077 5700

Amoéba is a research client of Edison Investment Research Limited

Thus far, FY23 has marked a year of successful advancement for Amoéba: (1) the development of its biocontrol plant is ongoing, poised to achieve production of 40 tonnes per annum of W. magna lysate; (2) a third scientific article has been published, which highlights the efficacy of its biocontrol product; and (3) the company has announced a potential further application for W. magna lysate in cosmetic skincare. The new application will not hinder advancement of the biological fungicide product. H123 saw the widening of EBIT losses by €1.0m y-o-y to €3.9m, primarily attributable to increased industrial deployment costs and financing fees; Amoéba plans to seek €45m financing to support its expansion and operations.

Year end

Revenue
(€m)

EBITDA
(€m)

PBT*
(€m)

EPS*
(€)

DPS
(€)

P/E
(x)

12/20

0.0

(4.4)

(8.0)

(0.49)

0.00

N/A

12/21

0.0

(4.0)

(7.4)

(0.42)

0.00

N/A

12/22

0.0

(4.7)

(7.7)

(0.23)

0.00

N/A

12/23e

0.0

(7.7)

(9.1)

(0.18)

0.00

N/A

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Accelerated progress towards commercialisation

Amoéba is rapidly advancing its operations with the ongoing construction of its USIBIAM biocontrol plant, which when completed will have the capacity to treat 100,000 hectares annually of agricultural crops, with commercialisation expected in 2025. H123 saw the widening of EBIT losses by €1.0m y-o-y to €3.9m, primarily attributable to increased industrial deployment costs and financing fees. Net cash (including leases) decreased from €3.2m at end-FY22 to €2.5m in H123, largely due to a €1.3m cash outflow for the acquisition of tangible assets related to the biocontrol plant and increased opex, offsetting reductions in debt and financial interest costs. Our FY23 estimates remain unchanged.

Potential new application for W. magna lysate

In addition to W. magna lysate’s efficacy in crop protection (with the formulated product now branded AXPERA), Amoéba has presented a potential further application for the active substance in cosmetic skincare, validated by two studies, with next steps involving compatibility tests on human volunteers. This application will not hinder the advancement of AXPERA, as existing industrial facilities have ample capacity for the cosmetics application. A third scientific article has also been published, further highlighting AXPERA’s effectiveness as a biological fungicide, a clear endorsement of the industry.

Valuation: High-margin market potential

We are not attempting to calculate a valuation at present. As mentioned in our initiation note, the extended production plant could be capable of manufacturing sufficient volumes of AXPERA to treat 200,000 hectares of crops, which could represent annual revenues in the order of €26–35m and gross profit of c €20–25m at full utilisation. Further production facilities could follow to cater for what is expected to be a fast-growing industry.

H123 balance sheet and cash flow

The first half of the year was characterised primarily by the ongoing progression of the biocontrol application and the new financing obtained. Amoéba’s net cash decreased modestly to €2.5m from €3.2m at the end of FY22. The primary reason for this was substantial opex of €3.9m combined with a €1.4m outflow from the acquisition of tangible and intangible assets (H122: €0.04m) related to the biocontrol plant. This more than offset a substantial reduction in debt from €2.4m in FY22 to €0.7m in H123 and the resultant near elimination of gross financial interest compared to €1.5m in H122.

Exhibit 1: Comparison of H123 performance versus H122 and H222

€m

H122

H222

H123

Revenue

0.000

0.000

0.000

Grants

0.251

0.210

0.380

Industrial deployment costs

(0.516)

(0.594)

(0.958)

R&D costs

(1.306)

(1.219)

(1.224)

General and admin costs

(1.097)

(1.183)

(1.852)

Sales and marketing costs

(0.192)

(0.197)

(0.227)

Reported EBIT

(2.860)

(2.983)

(3.882)

Net finance costs

(1.531)

(0.314)

(0.008)

Change in fair value of derivatives and other exceptional items

(0.335)

0.000

(0.112)

Reported profit before tax

(4.726)

(3.297)

(4.002)

Reported tax

0.000

0.000

0.000

Reported profit after tax

(4.726)

(3.297)

(4.002)

Source: Amoéba data

Working capital increased marginally by €0.08m versus end-FY22, reflecting an increase in other receivables, which offset increased trade and tax payables. Inventory levels, which relate to the consumables required to make both the active substance used in the biocontrol product and the biocide, decreased modestly by €0.06m and there were minimal trade receivables because the company is not yet revenue generating. Because the R&D costs related to obtaining regulatory approvals rather than technology developments, they were expensed rather than capitalised. The company spent €1.4m on tangibles and intangibles (H122: €0.04m) of which €1.1m related to the new site in Cavaillon and €0.2m to laboratory equipment.

Net assets decreased from €8.2m in FY22 to €6.6m in H123. This was primarily attributable to a reduction in cash and cash equivalents from substantial opex and the acquisition of tangible assets, which more than offset the substantial reduction in debt that coincided with largely reduced finance costs. Amoéba’s financial debt totalled €667,307, comprising liabilities relating to lease obligations and repayable advances.

Actively seeking funding for expansion and operations

Amoéba had €3.1m cash (gross) on its balance sheet at end-June 2023 compared to €5.5m at the end of December. Excluding working capital movements, operating cash burn during H123 was €3.0m. Assuming cash burn continues at H123 levels, this gives a cash runway into H124. The company will need to secure additional funding to support its development until H125, when revenue generation is expected to begin.

Following the cancellation of the eighth optional tranche of 80 convertible bonds with Nice & Green, the company has signed a contract with independent advisory firm Redbridge Debt & Treasury Advisory to assist it in securing €45m financing to fund operations and site expansion over the next three years. Of this, €23m is allocated to capex and the remainder for funding field trials, supporting the regulatory approvals process, registering products, establishing sales channels and adding production staff. Management is considering constructing an extension to the Cavaillon facility, which would double output and cost another €10m. We note there is no certainty in the company’s ability to secure this funding.

Because it will take time for Redbridge to secure this funding, Amoéba has agreed a new bond financing agreement with Nice & Green that will generate up to €8.4m net cash through the issue of three equal tranches of bonds between 30 June 2023 and 1 March 2024. Interest will be payable at six-month EURIBOR plus 600bp at the date of each drawing. The bonds mature 30 months after the issue date and the earliest date at which Amoéba will start repaying the loan is 31 March 2024. The arrangement has enabled the company to start its manufacturing scale-up programme; the first tranche of 100 straight bonds has been drawn down for a net amount of €2.8m, paid in July/August 2023.

In addition, the French public investment bank, BPI France, will provide Amoéba with a €3.6m grant and a €2.4m recoverable advance to support the expansion programme. We understand that €1.5m has already been received (of which €0.9m related to the grant and €0.6m related to recoverable advances). The timing of remaining payments has not yet been announced.

Management has carried out a specific review of the company’s liquidity risk and states that Amoéba has sufficient net working capital to meet its obligations until end-July 2024.

FY23: A year of progress so far

To date, 2023 has been a dynamic year for the company, with construction of the new production plant, dedicated to its biocontrol product against pathogenic fungi, commencing. This facility is expected to be capable of manufacturing sufficient finished product to treat 100,000 hectares of crop annually (or 200,000 hectares when extended) and production is slated to start in early 2025. The plant is designed to operate a single eight-hour shift, seven days a week. Sustainability remains deeply embedded in Amoéba’s activities, with 65% of the biocontrol plant’s roofs set to feature photovoltaic panels, and energy-conserving systems such as geothermal regulation and organic sludge recovery (biomethane) to be included. As part of its pre-commercialisation strategy, Amoéba has introduced an international brand for its biocontrol solution, which will be known as AXPERA.

Exhibit 2: 3D representation of USIBIAM biocontrol plant, Cavaillon

Source: Amoéba

With construction well under way, we expect revenue generation to commence in 2025, subject to product approval. We note that the gross margins likely to be achievable for the company are relatively high, with management targeting at least 75%. The high level is attributable to a combination of the use of its proprietary production facility, with no outsourcing, and high sector-wide margins. In 2022, Eden Research generated a 45% gross margin and Plant Health Care 61%, both comparable peers at later stages (although both outsource production). As mentioned in our initiation note, we estimate that at full utilisation the extended USIBIAM production plant could produce enough biological fungicide to generate annual revenues in the order of €26–35m and gross profit of c €20–25m at full utilisation, with a gross margin target in the region of 75%.

Publication of third scientific research article

Since 2019, Amoéba has engaged in over 620 field trials, including 200 partner tests, evaluating the efficacy of lysate of the Willaertia magna C2c Maky amoeba as a biological fungicide over a range of different climates/conditions and on a variety of different targets. Results thus far have been highly encouraging, including the data demonstrated in a recently published scientific article.

This marks the third peer-reviewed scientific article on Amoéba’s biocontrol application in the special ‘Biological Control of Plant Diseases II’ issue of Plants. Specifically, this article presents the efficacy of the active substance and formulated product (AXPERA) on late blight and powdery mildew on tomato plants, demonstrating statistically significant protection of up to 97% and 100% on the leaves and fruit, respectively. This is attributable to the product’s ability to stimulate tomato genes involved in the plant defence pathways.

Exhibit 3: Trial in 2022 showing untreated powdery mildew on tomato plants

Exhibit 4: Trial in 2022 showing powdery mildew on tomato plants treated with AXPERA

Source: Amoéba

Source: Amoéba

Exhibit 3: Trial in 2022 showing untreated powdery mildew on tomato plants

Source: Amoéba

Exhibit 4: Trial in 2022 showing powdery mildew on tomato plants treated with AXPERA

Source: Amoéba

Publications, such as the one mentioned above, substantiate the effectiveness of Amoéba’s formulated product as a biological fungicide. If granted approval, it could offer a compelling substitute for widely employed chemical fungicides. Notably, certain countries are in the process of banning chemical fungicides due to their adverse impact on the environment, including risks to pollinators such as bees. This is exemplified in the case of Bordeaux mixture, an organic fungicide made from copper sulphate and calcium hydroxide, used to treat downy mildew and sulphur powdery mildew. Prolonged use of this mixture can lead to copper accumulation in the soil, harming organisms such as worms, and restricting cattle grazing. In response, the European Commission imposed a copper application limit of 4kg per hectare per year in 2018, with a review scheduled for 2026. Moreover, microorganisms are evolving to be resistant to commonly used conventional fungicides.

Using biological fungicides to replace or complement conventional ones gives growers an option of maintaining crop yield while reducing the use of substances that are harmful to human health and the environment.

Potential new application for W. magna lysate

The company, in its efforts to explore new applications of Willaertia magna C2c Maky lysate, made an unexpected discovery regarding its potential anti-ageing cosmetic properties. Two laboratory studies were conducted to validate this potential application. The first study demonstrated the lysate’s stimulation of various genes in lab-grown human skin cells. Notably, it moderately enhanced the expression of genes associated with wound healing, hyaluronic acid synthesis and anti-infectious immunity (FBL5, HAS and TLR2 genes) while displaying strong stimulation of genes involved in cell preservation, cell renewal and protection against UV radiation, oxidative stress and photoaging (BCL2, PIWIL1, FOXO1 and SGK1 genes).

The second study was carried out by a reputable biotech company, LabSkin Creations. The lysate was applied every two to three days for a month to a 3D reconstructed skin model and results showed increased epidermal thickness, improved cell differentiation and an enhanced extracellular matrix (which plays an essential role in skin cohesion), all associated with anti-ageing properties. The company has filed a patent and further tests on 30–50 volunteers are planned for early 2024.

This breakthrough opens a potentially lucrative avenue for Amoéba; according to Statista, the global anti-ageing market was estimated to be worth c $63bn in 2021 and is projected to grow at a CAGR of 7% from 2022 to 2027. Furthermore, facial anti-ageing products were the second most sought after skin care treatment in the US in 2022, with sales amounting to over $1bn (c 25% of aggregate skin care sales). The next phase, which involves conducting trials on volunteers and further development, holds significant potential for the company. However, it is important to note that entering the anti-ageing cream market presents challenges primarily due to its competitiveness and the need for differentiation. The importance of labels is vital in influencing purchasing decisions of consumers.

This application does not compromise advancement of AXPERA, as according to management estimates, very small amounts of active product could be sufficient to generate commercial volumes of anti-ageing cream. Thus the ingredient can be mass produced using the company’s existing industrial facilities.

FY23/24 outlook

Exhibit 5: Timetable for securing regulatory approval

Source: Amoéba

Amoéba remains on track for approval of its formulated product, AXPERA, in both the US and EU in 2024, bolstered by the continuing positive efficacy results from trials. Furthermore, in Brazil, following field trials on soybean carried out over winter 2022/23, Amoéba plans to submit an application for active substance approval and marketing authorisation for products containing this active substance this year, potentially leading to marketing authorisation in 2025.

Field tests continue to make progress, including those testing efficacy and selectivity on new targets (eg arboriculture, aromatic and ornamental plants, strawberry, garlic).

Exhibit 6: Financial summary

Year end 31 December

€m

FY20

FY21

FY22

FY23e

INCOME STATEMENT

Revenue

 

 

0.0

0.0

0.0

0.0

EBITDA

 

 

(4.4)

(4.0)

(4.7)

(7.7)

Operating profit (before amort. and excepts.)

 

 

(5.9)

(4.9)

(5.8)

(8.8)

Amortisation of acquired intangibles

0.0

0.0

0.0

0.0

Exceptionals

0.0

0.0

0.0

0.0

Share-based payments

(0.3)

(0.7)

(0.0)

(0.0)

Reported operating profit

(6.2)

(5.6)

(5.8)

(8.8)

Net Interest

(2.1)

(2.5)

(1.9)

(0.3)

Exceptionals

0.1

0.2

(0.3)

0.0

Profit Before Tax (norm)

 

 

(8.0)

(7.4)

(7.7)

(9.1)

Profit Before Tax (reported)

 

 

(8.2)

(7.8)

(8.0)

(9.1)

Reported tax

0.0

0.0

0.0

0.0

Profit After Tax (norm)

(8.0)

(7.4)

(7.7)

(9.1)

Profit After Tax (reported)

(8.2)

(7.8)

(8.0)

(9.1)

Discontinued operations

0.0

0.0

0.0

0.0

Net income (normalised)

(8.0)

(7.4)

(7.7)

(9.1)

Net income (reported)

(8.2)

(7.8)

(8.0)

(9.1)

Average Number of Shares Outstanding (m)

16.2

17.8

33.6

49.1

EPS - normalised (€)

 

 

(0.49)

(0.42)

(0.23)

(0.18)

EPS - normalised fully diluted (€)

 

 

(0.49)

(0.42)

(0.23)

(0.18)

EPS - basic reported (€)

 

 

(0.50)

(0.44)

(0.24)

(0.19)

Dividend (€)

0.00

0.00

0.00

0.00

Revenue growth (%)

N/A

N/A

N/A

N/A

EBITDA Margin (%)

N/A

N/A

N/A

N/A

Normalised Operating Margin

N/A

N/A

N/A

N/A

BALANCE SHEET

Fixed Assets

 

 

6.9

6.1

5.3

9.7

Intangible Assets

2.5

2.5

2.5

2.5

Tangible Assets

4.3

3.5

2.7

7.1

Investments & other

0.1

0.1

0.1

0.1

Current Assets

 

 

6.2

8.4

7.1

2.2

Stocks

0.1

0.3

0.3

0.3

Debtors

0.0

0.0

0.0

0.0

Cash & cash equivalents

5.0

7.3

5.5

1.1

Other

1.1

0.9

1.3

0.9

Current Liabilities

 

 

(2.1)

(13.8)

(4.2)

(13.2)

Creditors

(1.1)

(1.0)

(1.3)

(1.9)

Short term borrowings including lease liabilities

(0.4)

(12.2)

(2.3)

(10.7)

Other

(0.6)

(0.5)

(0.6)

(0.6)

Long Term Liabilities

 

 

(9.0)

(0.5)

(0.1)

(0.1)

Long term borrowings

(8.2)

(0.3)

(0.1)

(0.1)

Other long term liabilities

(0.7)

(0.3)

(0.0)

(0.0)

Net Assets

 

 

2.0

0.2

8.2

(1.3)

Minority interests

0.0

0.0

0.0

0.0

Shareholders' equity

 

 

2.0

0.2

8.2

(1.3)

CASH FLOW

EBITDA

(4.4)

(4.0)

(4.7)

(7.7)

Working capital

0.9

(0.4)

0.3

0.6

Exceptional & other

0.2

0.2

(0.0)

0.0

Tax

0.0

0.0

0.0

0.0

Operating Cash Flow

 

 

(3.3)

(4.3)

(4.4)

(7.1)

Capex (including capitalised R&D)

(0.1)

(0.1)

(0.2)

(5.5)

Acquisitions/disposals

0.0

0.0

0.0

0.0

Net interest

(0.2)

(1.6)

(1.0)

(0.3)

Equity financing

0.0

0.0

(0.2)

0.0

Dividends

0.0

0.0

0.0

0.0

Other

4.5

10.1

10.6

0.0

Net Cash Flow

1.0

4.1

4.8

(12.8)

Opening net debt/(cash)

 

 

2.7

3.6

5.2

(3.2)

FX

0.0

0.0

0.0

0.0

Other non-cash movements

(1.9)

(5.7)

3.6

0.0

Closing net debt/(cash)

 

 

3.6

5.2

(3.2)

9.7

Lease liabilities

0.7

0.5

0.3

0.3

Closing net debt/(cash) excluding property lease liabilities

 

 

2.9

4.7

(3.5)

9.4

Source: company accounts, Edison Investment Research


General disclaimer and copyright

This report has been commissioned by Amoéba and prepared and issued by Edison, in consideration of a fee payable by Amoéba. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2023 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

General disclaimer and copyright

This report has been commissioned by Amoéba and prepared and issued by Edison, in consideration of a fee payable by Amoéba. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2023 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

More on Amoeba

View All

Latest from the Industrials sector

View All Industrials content

Research: Financials

Triple Point Social Housing REIT — Q323 DPS was fully covered

With indexed rental growth continuing and rent collection recovering, Triple Point Social Housing REIT’s (SOHO’s) Q323 dividend was fully covered, and we expect this to continue. Meanwhile, while the board continues its focus on closing the share price discount to NAV, it has concluded that any further capital return is dependent on significant additional liquidity being generated through property sales.

Continue Reading
Triple Point Social Housing REIT_resized

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free