BIF - Valuation Increase

BIF – Valuation increase

21 June 2023

On 18 May 2023, Booster announced that it had reassessed the value of one of its businesses in the Booster Innovation Fund’s investment portfolio that was in advanced discussions with investors and major customers for the raising of additional capital for the business at a price substantially higher than its carrying value.

It was noted at that time that while there was uncertainty in whether the transaction would complete on materially the same terms anticipated, it was considered appropriate to increase the valuation at that time.

Importantly, it was indicated that there was the potential for a further material increase in the value and that Booster would continue to monitor the transaction and reassess its carrying value accordingly.

Based on information received by Booster, the transaction continues to progress as previously indicated, and while not yet complete, Booster has reassessed the probability of the transaction completing, and considers a further valuation increase is warranted.

Since the announcement made on 18 May 2023, Booster has increased its assessment of the net asset value of the Fund by $483,000 or 3.1% (net of an allowance for any performance fees and tax), of which $222,000 or 1.4% was recognised in an adjustment made on 13 June 2023. This means a further adjustment of $261,000 or 1.7% is to be reflected today, resulting in a net asset value per unit of approximately $1.482 (which compares with the latest net asset value per unit of $1.457).

There remains potential for a further increase in the value of the Fund (by an additional 1.7% of the Fund’s current value) if the transaction completes as anticipated. Booster will continue to monitor this transaction and will reassess its carrying value accordingly.

Investors can continue to purchase or sell units in BIF on the NZX but are cautioned to consider the impact of this announcement when assessing a fair price for the transaction. Any update to the business’s carrying value will be announced to the NZX where material or on completion of the transaction (which may include a reduction in the valuation assessment if the transaction fails to complete). Until a further announcement is made, there is no assurance that the signalled additional potential increase in the value of the Fund will occur.

For more information, please contact:
Gary Scott
Company Secretary
Booster Investment Management Limited
04 8944300



 
About Booster
Booster Investment Management Limited (Booster) is the manager and issuer of the Fund, and part of the Booster Group which has been helping New Zealanders save since 1998. The group currently administers superannuation and investment funds of over $5 billion on behalf of more than 190,000 New Zealanders.
BIF is a managed investment fund that invests in early-stage companies founded on intellectual property originated or developed in New Zealand.
For more information, including a copy of the Product Disclosure Statement, please visit www.booster.co.nz

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Announcement PDF