Last close As at 06/08/2026
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Research: TMT
The Federated Wireless funding round comes hot on the heels of the Hawkeye360 fund-raise in August 2019. We estimate that the Federated Wireless round provides a further NAV uplift of $22m, equating to 4p per share (net of the $10m cash invested). Allied Minds has now delivered additional validation for two of its three principal portfolio companies, with 2019 funding rounds closed with strategic investors (in line with its June AGM statement), each offering material NAV uplifts. We calculate the fully diluted NAV of these two portfolio companies alone comes to 53p. At today’s price, considering our estimate of adjusted net cash of approximately 10p, Spin Memory, BridgeSat and the remainder of the portfolio are in the price for free.
Written by
Allied Minds |
Federated Wireless $51m Series C financing |
Portfolio update |
Investment companies |
5 September 2019 |
Share price performance
Business description
Analysts
Allied Minds is a research client of Edison Investment Research Limited |
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The Federated Wireless funding round comes hot on the heels of the Hawkeye360 fund-raise in August 2019. We estimate that the Federated Wireless round provides a further NAV uplift of $22m, equating to 4p per share (net of the $10m cash invested). Allied Minds has now delivered additional validation for two of its three principal portfolio companies, with 2019 funding rounds closed with strategic investors (in line with its June AGM statement), each offering material NAV uplifts. We calculate the fully diluted NAV of these two portfolio companies alone comes to 53p. At today’s price, considering our estimate of adjusted net cash of approximately 10p, Spin Memory, BridgeSat and the remainder of the portfolio are in the price for free.
Period end |
Ownership adjusted value (OAV) (US$m) |
Parent-level net cash (US$m) |
NAV |
NAV/share |
P/NAV |
12/16 |
415.8 |
136.7 |
552.9 |
208.0 |
0.28 |
12/17 |
395.6 |
84.2 |
479.8 |
150.0 |
0.38 |
06/18 |
350.1 |
66.0 |
416.1 |
132.4 |
0.43 |
12/18* |
226.7 |
50.6 |
277.3 |
94.2 |
0.61 |
Note: NAV is calculated as fair value plus net cash at the parent level. *FY18 NAV is based on our estimate of FY18 fair value as this is no longer disclosed by the company.
Allied Minds has announced a $51m Series C financing for one of its principal portfolio companies, Federated Wireless, a pioneer in Citizen Band Radio Service (CBRS). The funds raised will enable Federated Wireless to accelerate the availability and adoption of shared spectrum CBRS services in the US. Participants in the round included new investors SBA Communications (NASDAQ: SBAC) and Pennant Investors, alongside existing investors GIC, Singapore's sovereign wealth fund, American Tower (NYSE: AMT) and Allied Minds.
The transaction was completed at a post-money valuation of $201m, a 65% increase on the $121.5m FY18 carrying value. Allied Minds invested $10m in the financing, with its stake in Federated Wireless valued between $72.0m (fully diluted) and $85.6m (undiluted) (24.5–29.1p per share).
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Research: Healthcare
Oxford BioMedica’s (OXB’s) interim results were broadly in line with our expectations for 2019. The decrease in H119 revenues to £32.1m (-9%) largely reflects the exceptional performance in the previous period, which was bolstered by strong licence income (H119: £13.3m vs H118: £19.9m) primarily from upfront payments with the Axovant and Bioverativ deals signed (£18.5m combined). Importantly, in H119 bioprocessing revenues grew 23% to £18.8m, which we expect was driven by the continued uptake of Novartis’s CAR-T Kymriah. Typically, bioprocessing revenues are back-end loaded so a stronger performance can be expected in the second half of the year. With OXB transitioning one of its GMP suites across to bioreactor processing in H119 and its new OxBox bioprocessing facility expected to be fully operational in Q220, we expect this growth to continue in the near term. We retain our valuation of £649m.