BIF - Valuation Update

Booster has been informed by one of the businesses in the Booster Innovation Fund’s investment portfolio, that it is currently in advanced discussions with existing and new investors for the raising of additional capital for the business at a price substantially higher than its current carrying value.

Due to confidentiality restrictions, Booster is not able to name the business concerned.

This transaction is relevant to Booster’s assessment of value given it represents a third-party pricing event. As a result, Booster has reviewed its carrying value of this investment and the impact on the net asset value of the Fund. While Booster recognises there is uncertainty in whether the capital raise will be completed on materially the same terms anticipated, Booster considers a valuation increase is warranted at this stage.

Following its assessment on the business valuation, Booster has increased the net asset value of the Fund by $715,000 or 3.9% (net of an allowance for any performance fees and tax), resulting in a net asset value per unit of approximately $1.5876 (which compares with the latest net asset value per unit of $1.5281). The effective date of that adjustment is 25 January 2024 which will be reflected in the unit price of the Fund published on Monday 29 January 2024.

In its assessment, Booster has applied its investment valuation approach to this new information which includes applying a probability weighting. Should the transaction complete at the value indicated, and is consistent with Booster’s own assessment of value, there is a potential for a further material increase in the value of the Fund (by an additional 2.1% of the Fund’s current value). Booster will continue to monitor the completion and circumstances of this transaction and will reassess its carrying value accordingly. In addition, Booster routinely reassesses the value of the portfolio prior to the issue or redemption of units in the Fund.

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 $6 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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