Seraphim Space Investment Trust — Weathering the storm

Seraphim Space Investment Trust (LSE: SSIT)

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Seraphim Space Investment Trust — Weathering the storm

Despite the equity market volatility seen in 2022, Seraphim Space Investment Trust (SSIT) has delivered modestly positive NAV growth since initial trading in July 2021 to the end of its financial year in June 2022. In aggregate, the portfolio’s unlisted holdings saw positive revaluations over the period, while the listed holdings fared poorly. The fund’s 80% exposure to non-sterling assets was a significant contributor to returns. Cash reserves equated to 24% of NAV at the year end and the company believes they are sufficient to support existing portfolio companies, which are all well capitalised through to at least June 2023 on average having collectively raised over $1bn in the last 12 months. In the near term, the primary focus is likely to be on ensuring suitable levels of finance within the portfolio with selective and relatively modest additions of new holdings. In our last update on SSIT, Derating offers an attractive entry point, we made the case for the company’s role in addressing formidable world challenges such as climate change and defence, which accounted for more than 90% of portfolio revenues at 30 June. If possible, the application of such technology has come into ever sharper focus in recent months, validating the relevance of and potential within SSIT’s portfolio.

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Seraphim Space Investment Trust

Weathering the storm

Investment trusts
Growth capital

27 October 2022

Price

51.3p

Market cap

£122.7m

Total assets

£239.3m

NAV*

99.97p

Discount to NAV

48.7%

*Including income. As at 26 October 2022.

Yield

0.0%

Ordinary shares in issue

239.4m

Code/ISIN

SSIT/GB00BKPG0138

Primary exchange

LSE

AIC sector

Capital Growth

SSIT’s Financial year-end

30 June

52-week high/low

130.8p

48.0p

NAV* high/low

104.7p

98.9p

*Including income.

Cash as a % of NAV

20.1

*As at 26 October 2022.

Fund objective

Seraphim Space Investment Trust’s objective is to generate capital growth over the long term through investment in a diversified, international portfolio of predominantly early- and growth-stage unquoted space tech businesses with the potential to dominate globally. Space tech businesses rely on space-based connectivity or precision, navigation and timing signals, addressing a broad range of key applications.

Bull points

SSIT and its portfolio companies are relatively well capitalised.

NAV performance has defied market volatility.

Seraphim Space’s investment team has been strengthened.

Bear points

Share price volatility reflects investor sentiment.

Liquidity constraints could hamper new investments over the longer term.

The current inflation and interest rate environment is likely to continue to provide headwinds for the sector.

Analysts

David Holder

+44 (0)77 962 68072

Andy Chambers

+44 (0)20 3077 5700

Seraphim Space Investment Trust is a research client of Edison Investment Research Limited

Despite the equity market volatility seen in 2022, Seraphim Space Investment Trust (SSIT) has delivered modestly positive NAV growth since initial trading in July 2021 to the end of its financial year in June 2022. In aggregate, the portfolio’s unlisted holdings saw positive revaluations over the period, while the listed holdings fared poorly. The fund’s 80% exposure to non-sterling assets was a significant contributor to returns. Cash reserves equated to 24% of NAV at the year end and the company believes they are sufficient to support existing portfolio companies, which are all well capitalised through to at least June 2023 on average having collectively raised over $1bn in the last 12 months. In the near term, the primary focus is likely to be on ensuring suitable levels of finance within the portfolio with selective and relatively modest additions of new holdings. In our last update on SSIT, Derating offers an attractive entry point, we made the case for the company’s role in addressing formidable world challenges such as climate change and defence, which accounted for more than 90% of portfolio revenues at 30 June. If possible, the application of such technology has come into ever sharper focus in recent months, validating the relevance of and potential within SSIT’s portfolio.

2022 has been a tough environment for growth assets

Source: Refinitiv, Edison Investment Research. Note: Total returns in sterling.

Why invest in SSIT?

For the contrarian investor, for those comfortable with risk, or for investors with a truly diversified portfolio and a suitably long-term investment horizon, SSIT continues to offer a unique opportunity to access tomorrow’s potential space tech winners in what will surely be a multi-generational secular growth theme. The fund manager, Seraphim Space, has a demonstrable track record of investing in early-stage companies and has added to its already deep strength and depth of investment capability over the year. The full year results provide a natural opportunity to review the company’s performance. Results have been mixed with share price weakness the overriding experience for investors. While this is disappointing, there are positives, which we feel should assuage long-term investor concerns. SSIT has demonstrated that its underlying operational performance is progressing, with material cash balances allowing the manager the luxury of patience with its holdings.

SSIT profile: Pure focus on space technology

SSIT is targeting capital growth of at least 20% pa over the long term via a diversified international portfolio of predominantly early and growth stage unquoted space technology businesses. It is the world’s only publicly listed investment fund focusing solely on this particular subset of investment opportunities. It was listed on the Main Market of the London Stock Exchange on 14 July 2021 after an initial public offering (IPO) raised £150m. Prior to becoming an investment trust, the manager ran the portfolio as the private Seraphim Space LP Fund. After the IPO SSIT acquired an initial portfolio of 15 companies (of the Seraphim Space LP fund’s then 19 holdings) from the fund for a consideration of £28.4m, paid for in SSIT shares.

In addition to acquiring the initial 15 investments, SSIT agreed to purchase the remaining four companies from the Seraphim Space LP fund (Arqit, ICEYE, D-Orbit and Spire) by 31 December 2021. Further share issuance of £34.7m was used to purchase the limited partnership (LP) fund’s holdings in Spire and Arqit in August and September, and in December SSIT announced the completion of the purchase of the remaining holdings from the LP fund in ICEYE and D-Orbit for a consideration of £28.1m, also paid for in SSIT shares. Subsequent to launch and the transactions listed above, there have been 10 new investments made with 13 follow-on investments in the portfolio equating to £96m in total.

‘New Space’ continues to develop rapidly in 2022

In our initiation note on SSIT in April 2021, Space tech – enabling a new industrial revolution, we highlighted the significant changes that have been occurring in the space technology sector, with the seismic catalyst being the huge reductions in the cost of launching ever smaller but highly capable devices in volume into space. The end users of such technology include a wide variety of industries such as defence, communications, transport, agriculture, insurance and environmental applications.

According to the Seraphim Space Index, there was a slight slowdown in the level of early-stage space infrastructure investment during H122, falling from $12.7bn (year to 31 December 2021) to $12.2bn (year to 30 June 2022). The financials for many of the space tech fund-raises are likely to take a couple of years to move towards self-sustainability, but the liquidity provided should enable progress towards that goal.

A record number of launches to orbit are expected in 2022, dominated by the SpaceX and China missions. In H122 there were 75 orbital launch missions deploying almost 1,200 spacecraft. The record for a single year of 135 launches, set in 2021 and deploying 1,713 satellites (also the most ever), seems certain to be broken once again. In Q322 there were a further 35 launches and the pace is expected to remain high in Q422.

The overall number of launcher options to deploy spacecraft has increased as have the locations available to launch them. The UK still expects its first seven satellite deployments from Spaceport Cornwall during Q422 using Virgin Orbit’s LauncherOne system. Most satellites are launched by commercial organisations although there has been a significant number of non-commercial deployments.

Transportation, non-satellite and beyond earth orbit missions are also gathering momentum, although these programmes mainly mature in coming years.

The war in Ukraine is having two effects on the space environment. The availability of commercial satellite communications and earth observation capabilities to supplement military intelligence and network capabilities is clearly indicative of the increasing utility of space-derived data. Conversely it is also highlighting the increasing risk to the space environment with the potential increased threat of anti-satellite operations, be they kinetic (eg missiles), non-kinetic (eg lasers), electronic (eg jamming) or cyber (eg hacking). Whether the rift can be smoothed over in the foreseeable future is unclear, but hopefully the expansion of low Earth orbit (LEO) networks and other capabilities for humanitarian and environmental betterment can proceed unencumbered.

Portfolio positioning at 30 June 2022

At 30 June SSIT’s portfolio consisted of 26 space tech companies with a combined value of £186.1m and cash reserves of £57.7m (24% of NAV). In Q4 of the financial year, five investments were made totalling £7.7m, three new investments in Tomorow.io and two new seed investments, together with follow-on funding for Xona Space Systems and a seed investment. Tomorrow.io provides data around weather forecasting with applications in aviation, ground transport, shipping, logistics and insurance. SSIT participated in the June internal financing round with a £4.2m investment with the aim of developing Tomorrow.io’s satellite constellation capability. Xona Space Systems is developing the world’s first small satellite constellation in low orbit, allowing enhanced levels of accuracy for GPS systems. The fund originally invested at the seed round in August 2021 with a £2.6m investment, which was followed in May 2022 with an additional £2.0m (alongside Lockheed Martin) to launch and test the company’s satellite constellation.

Exhibit 1: Top 10 investments at 30 June 2022

Status

Sub level category

Headquarters

Cost
(£m)

31 December fair value (£m)

30 June fair value (£m)

% of NAV

ICEYE

Unquoted

Earth observation

EU

39.6

38.9

43.3

18.1

All.SPACE (formally Isotropic)

Unquoted

Antennas

UK

19.5

22.4

24.9

10.4

HawkEye 360

Unquoted

Earth observation

US

18.7

18.5

20.6

8.6

Arqit

NASDAQ

Satcoms

UK

27.3

47.9

14.0

5.9

LeoLabs

Unquoted

Data platforms

US

11.7

12.3

13.7

5.7

D-Orbit

Unquoted

In orbit services

EU

7.3

7.2

12.7

5.3

Altitude Angel

Unquoted

Data platforms

UK

3.7

3.7

9.0

3.8

Planet Watchers

Unquoted

Data analytics

UK

3.0

3.2

8.1

3.4

Satellite Vu

Unquoted

Earth observation

UK

4.6

7.8

7.8

3.3

Astroscale

Unquoted

In orbit services

Asia

9.4

9.3

7.7

3.2

Source: Seraphim Space, Edison Investment Research. Note: The top 10 investments accounted for 93.6% of the invested portfolio at 30 June 2022 and 68.3% of NAV overall.

Post the period end, a further £8.9m has been invested via seven investments, three of which are new investments for the portfolio. The principal new holdings were in Voyager Space Holdings (£2.1m) and Taranis (£2.1m), with an additional new position initiated in an early-stage undisclosed company (£0.2m). Voyager aims to build the first commercial space station, while Taranis uses satellite-derived data to improve crop yields. There was an additional investment of £2.5m made in August 2022 into PlanetWatchers’ $11m series A fund-raising to support its commercial growth via investment in its sales capability.

The pace of investment has slowed in 2022. At launch in July 2021, SSIT guided to being fully committed within six to 12 months. However, macro events such as the war in Ukraine and associated market volatility have caused management to pause for breath in deploying the available cash. Instead, the near-term focus will be on supporting the current investments through this potentially challenging environment with relatively modest investment in selective new opportunities. Using conservative estimates, the existing portfolio is well capitalised to at least 30 June 2023 on average and the manager has sufficient cash resources to support the needs of the portfolio for 12 months thereafter.

Peer group comparison: A unique proposition

As we have discussed previously, there are no direct comparisons or peers of SSIT. There are private/early-stage venture funds, thematic strategies including exchange traded funds, which may include some of the SSIT opportunity set, but SSIT’s focus on early-stage, private new space tech companies is unique. However, the 2022 share price performance bears some similarity to other early-stage private equity funds (Exhibit 3).

Exhibit 3: AIC Growth Capital peer group comparison at 26 October 2022*

% unless stated

Market cap £m

NAV TR
1 year

Ongoing
charge

Perf.
fee

Discount
(cum-fair)

Net
gearing

Dividend
yield

Seraphim Space Investment Trust

122.7

(3.9)

1.72

Yes

48.7

71

N/A

Chrysalis Investments Limited

369.3

(35.1)

0.76

Yes

60.5

94

N/A

Petershill Partners

2,259.0

0.5

5.55

Yes

42.8

100

N/A

Schiehallion C

319.7

4.2

1.15

No

38.4

100

N/A

Schiehallion Fund

422.6

(18.0)

0.90

No

23.6

70

N/A

Schroder British Opportunities

51.0

(8.3)

1.08

Yes

29.8

96

N/A

Schroder UK Public Private Trust

144.0

(32.3)

1.05

Yes

49.0

99

N/A

Simple average

526.9

(13.3)

1.74

Yes

41.9

90

N/A

SSIT rank in peer group

6

3

6

N/A

5

6

N/A

Source: Morningstar, Edison Investment Research. Note: *Performance as at 26 October 2022 based on ex-par NAV. TR = total return. Net gearing is total assets less cash and equivalents as a percentage of net assets.

Discount reflects the perceived nature of the portfolio

The board has considered buying back shares to support the share price; however, the decision was taken to focus on preserving cash reserves to support the existing portfolio and deploy funds into selective new opportunities, which we believe is a sensible use of the cash reserves. SSIT’s share price has seen a significant de-rating versus its NAV. However, Exhibit 4 puts SSIT’s discount into perspective with other growth-orientated private asset listed strategies. Exhibit 5 compares the NAV and share price performance over 2022 to date.

Exhibit 4: Significant de-rating through 2022 to date for SSIT and its AIC peers

Exhibit 5: SSIT’s relative NAV performance

Source: Morningstar. Note: AIC peer group average is unweighted.

Source: Morningstar. Note: AIC peer group average is unweighted.

Exhibit 4: Significant de-rating through 2022 to date for SSIT and its AIC peers

Source: Morningstar. Note: AIC peer group average is unweighted.

Exhibit 5: SSIT’s relative NAV performance

Source: Morningstar. Note: AIC peer group average is unweighted.

The fund manager

The alternative investment fund manager for SSIT is Seraphim Space LLP, an established private equity operator specialising in space technology. Since its inception in 2015, it has supported around 70 (via investment or participation in affiliated accelerator programmes) early-stage space technology companies. Seraphim Space has co-invested and collaborated with over 20 high-profile upstream industry participants such as Airbus Defence & Space and successfully managed the private Seraphim Space LLP Fund since 2016, which returned an annualised internal rate of return of 49% from launch to end December 2021. It is also a prominent publisher of research and the quarterly Seraphim Space Index, which monitors in-depth trends in global private investment within the space domain.

Developments at Seraphim Space through FY21

Over the course of the year, Seraphim Space (the fund manager) added senior personnel designed to enhance the already significant experience and expertise within the team. These included:

Sarah Shackleton, who joined as COO in March 2022 and has extensive private equity board and operational experience.

Patrick McCall (previously of Virgin Group and chair of Virgin Orbit and Virgin Galactic), who joined as a venture partner to support investee companies.

Andre Ronsoehr, who joined as investment principal having previously worked for Sir Richard Branson’s family office and having co-led the investment into One Web and assisted on the investments into Virgin Galactic and Virgin Orbit.

Maureen Haverty, who joined as a vice president, with ‘new space’ experience as COO at Apollo Fusion and subsequently at Astra where she worked on acquisitions, strategic partnerships and venture capital investments.

Ann Winblad, who joined the Investment Advisory Committee. She is co-founder of the influential Hummer Winblad Venture Partners and has had a 30-year career in software and venture capital investment, including launching some 160 enterprise software companies.

Seraphim Space Accelerator programmes

The fund manager Seraphim Space derives deal flow from a diverse range of sources, but one of the most effective and unique is via its innovative accelerator programmes. The Seraphim Space Accelerator is an affiliated programme and plays a key role in sourcing deal flow for the trust, with around 75 companies having passed through the programme, some of which are now in the SSIT portfolio. These international accelerator programmes run several times per year for up to 10 space technology companies per cohort, for three months, which leads to them raising equity funding from other venture capitalists. Through the subsequent careful ongoing monitoring of technical and commercial progression post-graduation from these accelerators, the fund manager, Seraphim Space, is able to cherry-pick which graduate companies to back. The accelerator programmes also put Seraphim Space at the heart of the space technology ecosystem, building deepening relationships with the global investor community for co-investment and deal syndication. Seraphim Space has recently launched a US subsidiary (Generation Space LLC) to facilitate its US-based affiliated accelerator programme and to widen the net from which potential investment opportunities may arise.

Space is an impactful sector: The role of ESG within SSIT

Seraphim Space is a signatory of Principles of Responsible Investment, which is a UN supported group of investors focused on sustainable investment by incorporating ESG factors into their investment decisions. Seraphim Space regards ESG factors as an absolute bedrock of the development in space technology and believes that space has a ‘unique role’ to play in addressing the climate crisis and, more broadly, driving and meeting the UN Sustainable Development Goals (SDGs). Seraphim Space has engaged with external sustainability consultant Sancroft to develop a proprietary ESG tool and to ensure that ESG considerations are fully integrated throughout the investment process, from idea screening, initial due diligence, investment, hands-on management of companies and finally when exiting positions. Seraphim Space applies a list of hard exclusions to investing, including never knowingly investing in controversial weapons (ie nuclear, chemical etc) or autonomous weapons, where a company’s technology is a key element of weapons technology, in companies that sell their military technology to high-risk countries or where technology is used to identify individuals in countries with high human rights risks. In aggregate across the portfolio, all 17 SDGs are addressed, with many goals such as zero hunger, responsible consumption, climate action and peace, justice and strong institutions addressed by multiple portfolio companies.

Investment process recap: Seeking winners within vast addressable markets

Seraphim Space seeks high-growth, early-stage space technology businesses that are addressing very large market opportunities. These opportunities are likely to persist for many decades, providing a long runway of growth and powerful long-term secular tailwinds. Investee companies must embrace the vast potential of space, take long-term investment decisions, be leaders in their field and be willing to tilt towards the best multi-generational opportunities. These best-in-breed leaders with first-mover advantage are well placed to disrupt existing incumbents to address the wide opportunity set or to create entirely new markets via the application of evolving technology. First-mover advantage can be hugely beneficial and create barriers to entry. For example Spire (which is one of the relatively mature listed holdings) is currently on its seventh generation of technology. Technical innovation is key, and it would require extensive investment for a new entrant to catch up. IP is also an important competitive moat for the category leaders, with a number of SSIT portfolio companies that have patents ranging in number from 100s to over a 1,000 in total. As first mover, there is often a greenfield opportunity to patent cutting-edge technologies, which creates legal challenges for competitive followers.

SSIT will apply the same consistent process that Seraphim Space has used to good effect since the launch of the Seraphim Space LP fund in 2016. It invests throughout the life cycle at seed, Series A through D, pre-IPO and IPO stages and will take minority stakes, although it has identified the B to D series rounds as a sweet spot. At this stage companies have ironed out technical risks and demonstrated that the product has a place in the market. At series C and beyond, companies are establishing market leadership potential. At June 2022, 20% of SSIT was in Seed or Series A stage (December 2021: 9%), with only six of the 26 holdings pre revenue (albeit all except one are pre profitable at this stage). Seraphim Space typically utilises preference shares, convertible loan notes and ordinary shares to access holdings rather than debt instruments. It will make follow-on investments at subsequent funding rounds, subject to a disciplined review of the milestones achieved by the underlying business. As a minority investor, Seraphim Space will potentially accept some dilution of a holding if the subsequent valuation is too high or milestones are not reached. Syndication of investments and the financial capability of co-investors is of key consideration. Seraphim Space does not invest alone, preferring to invest alongside well capitalised investors. For example, it co-led alongside Insight Partners in the HawkEye 360 Series D raising in November 2021. Insight Partners (a US VC and PE growth investor) operates a mega-fund of nearly $20bn, which shares the same long-term investment philosophy.

The first element of the investment process is to evaluate as many opportunities as possible; this allows a wide appraisal of the available opportunity set and developments in technology and applications. The manager does not have a specific target for the number of investments but has guided for a portfolio over time of 20–50 holdings.

Seraphim Space has cultivated a very strong symbiotic network of expert contacts and co-investors. It has corporate partnerships with leading global multinational space companies, many of which are investors in its funds, including Airbus Defence & Space, SES, Telespazio and MDA. These corporate partners in turn provide Seraphim Space with access to their expertise to facilitate due diligence evaluation and portfolio company commercial collaboration.

NAV valuation methodology

An unaudited NAV is calculated quarterly in pounds sterling for end September, December, March and June. The June NAV is independently audited by BDO, which tested 99% of total investment valuation. Publicly listed securities are valued at their bid price or last traded price (these currently comprise Arqit (ARQQ), Spire (SPIR) and AST SpaceMobile (ASTS)). However, the majority of the portfolio is unquoted. These assets are valued using International Private Equity and Venture Capital Association methodology including earnings multiples, discounted cash flow analysis or use of the value at the most recent funding round. More recent purchases may be held at cost until such time that alternative measures become more appropriate. Assets yet to generate profit or revenue are typically valued at the most recent funding round cost. The above factors, and the nature of the portfolio, containing early stage and unquoted assets, mean that there is likely to be an inherent element of lag in the quarterly reported NAV.

The fair value of the investments at the end of June 2022 was £186.1m in aggregate. 9.9% of the portfolio is valued via the available market price, which are the listed holdings of Arqit, Spire and AST SpaceMobile, and 11.3% via milestone multiples, with the majority of the portfolio valued in relation to funding rounds between three and six months ago (30.1%) and those where funding rounds occurred over six months ago (35.1%).

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This report has been commissioned by Seraphim Space Investment Trust and prepared and issued by Edison, in consideration of a fee payable by Seraphim Space Investment Trust. 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.

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General disclaimer and copyright

This report has been commissioned by Seraphim Space Investment Trust and prepared and issued by Edison, in consideration of a fee payable by Seraphim Space Investment Trust. 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.

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Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

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Mendus — Funding to see through key inflection points

Mendus has drawn down its first loan of SEK10m as part of the company’s binding commitment with its largest shareholder group, Van Herk Investments. The raise will help capitalise the company past key inflection points which include trial readouts from its ADVANCE II study in acute myeloid leukaemia and ALISON study in ovarian cancer, expected in Q422 and October 2022, respectively. Both studies are investigating the use of Mendus’ lead cancer vaccine candidate, DCP-001. The SEK10m two-year loan comes with a 6% cumulative interest and is intended to be repaid in cash at the end of the loan period. Additionally, Mendus has finalised its financing agreement with Negma Group, which has committed to subscribe up to SEK200m in convertible bonds. With a H122 cash position of SEK84.9m and H122 burn rate of SEK70.7m, we estimate a cash runway into Q123; however, assuming Mendus fully exercises the committed financing, we believe this could extend our runway estimates to H224. We value Mendus at SEK1.87bn or SEK9.35 per share.

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