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Edison Investment Research is terminating coverage on Photon Control (PHO), Allied Minds (ALM) and Bioasis Technologies (BTI). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant.

Previously published reports can still be accessed via our website.

Edison Investment Research is terminating coverage on Photon Control (PHO), Allied Minds (ALM) and Bioasis Technologies (BTI). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant.

Previously published reports can still be accessed via our website.


Allied Minds’ interim results showed progress at four of its seven portfolio companies – BridgeComm, Orbital Sidekick, Federated Wireless and Spin Memory – together c 95% of portfolio fair value. Despite progress, there was no uplift in fair value as top-up funding was committed at valuations established in 2018/19 funding rounds. This leaves latent value as, in order for deeptech companies progressing to plan, we would expect a doubling in valuation between funding rounds 12 to 18 months apart. ALM reported H120 parent cash of $29.9m, with our estimated fully diluted portfolio fair value of $175.3m. Adjusting for $5.5m of investments post period end, and three months of central costs, we estimate a fully diluted NAV per share of 62.7p. The shares trade at a 40% discount to this estimate of NAV.

Allied Minds’ interim results showed progress at four of its seven portfolio companies – BridgeComm, Orbital Sidekick, Federated Wireless and Spin Memory – together c 95% of portfolio fair value. Despite progress, there was no uplift in fair value as top-up funding was committed at valuations established in 2018/19 funding rounds. This leaves latent value as, in order for deeptech companies progressing to plan, we would expect a doubling in valuation between funding rounds 12 to 18 months apart. ALM reported H120 parent cash of $29.9m, with our estimated fully diluted portfolio fair value of $175.3m. Adjusting for $5.5m of investments post period end, and three months of central costs, we estimate a fully diluted NAV per share of 62.7p. The shares trade at a 40% discount to this estimate of NAV.

Allied Minds - NAV lagging the tangible progress made

BridgeComm, Allied Minds’ third largest holding in which it holds a 63% fully diluted stake (81% pre-dilution), has announced a high-speed optical communications partnership with Nokia. The partnership will leverage BridgeComm's expertise in free-space optical technology and Nokia's portfolio of network equipment and services backed by Nokia Bell Labs, the industrial research arm of Nokia, to facilitate faster deployment of 5G networks. BridgeComm is held by Allied Minds at a fully diluted book value of 7.7p per share (10.0p undiluted), based on an enterprise value of US$38m from BridgeComm’s last funding round in September 2018. With portfolio company valuations based on significantly historic last funding rounds, Allied Minds’ shares trade at a c 60% discount to our unchanged estimated fully diluted NAV of 77.9p (90.3p undiluted; both updated for FX). Allied Minds’ interim results are due on 15 October 2020.

BridgeComm, Allied Minds’ third largest holding in which it holds a 63% fully diluted stake (81% pre-dilution), has announced a high-speed optical communications partnership with Nokia. The partnership will leverage BridgeComm's expertise in free-space optical technology and Nokia's portfolio of network equipment and services backed by Nokia Bell Labs, the industrial research arm of Nokia, to facilitate faster deployment of 5G networks. BridgeComm is held by Allied Minds at a fully diluted book value of 7.7p per share (10.0p undiluted), based on an enterprise value of US$38m from BridgeComm’s last funding round in September 2018. With portfolio company valuations based on significantly historic last funding rounds, Allied Minds’ shares trade at a c 60% discount to our unchanged estimated fully diluted NAV of 77.9p (90.3p undiluted; both updated for FX). Allied Minds’ interim results are due on 15 October 2020.

Allied Minds - BridgeComm’s 5G partnership with Nokia

Allied Minds made significant progress in FY19, focusing on its slimmed down portfolio of seven investee companies, with strategic funding rounds for Federated Wireless (FW) and HawkEye 360, before the sale of HawkEye 360. Recurring central costs have been cut to $6m in FY20, with a headcount of seven. Post the period-end, FW announced partnerships with AWS and Microsoft Azure with initial revenues expected in FY20. Parent cash at 31 December 2019 was $84.1m. The company no longer discloses NAV, but we estimate net cash at 4 June 2020 of $31.9m (adjusted for the 12.6p special dividend, investments and costs) and NAV of 90.9p/share (78.4p/share fully diluted). Based on seemingly conservative valuations, the shares trade at a 56–62% discount to our estimated NAV.

Allied Minds made significant progress in FY19, focusing on its slimmed down portfolio of seven investee companies, with strategic funding rounds for Federated Wireless (FW) and HawkEye 360, before the sale of HawkEye 360. Recurring central costs have been cut to $6m in FY20, with a headcount of seven. Post the period-end, FW announced partnerships with AWS and Microsoft Azure with initial revenues expected in FY20. Parent cash at 31 December 2019 was $84.1m. The company no longer discloses NAV, but we estimate net cash at 4 June 2020 of $31.9m (adjusted for the 12.6p special dividend, investments and costs) and NAV of 90.9p/share (78.4p/share fully diluted). Based on seemingly conservative valuations, the shares trade at a 56–62% discount to our estimated NAV.

Allied Minds - NAV upside with additional ‘option’ value

Federated Wireless has completed a $13.7m Series C extension round to accelerate expansion of its connectivity-as-a-service partnership with Microsoft Azure and Amazon Web Services, first announced in February 2020. Pennant Investors, an existing investor, and Allied Minds each invested $6.85m to accelerate the roll-out of the leading private 4G/5G wireless cloud solution as well as to enable expansion of the spectrum controller for private wireless networks into the 6GHz band for 5G services. This extends the total Series C raise to $65m. Following the investment, Allied Minds owns 36.6% of Federated Wireless on a fully diluted basis (43.1% undiluted). We calculate Allied Minds’ holding in Federated Wireless alone to be worth 26.3p (fully diluted) versus the closing share price on 21 April 2020 of 26.4p.

Federated Wireless has completed a $13.7m Series C extension round to accelerate expansion of its connectivity-as-a-service partnership with Microsoft Azure and Amazon Web Services, first announced in February 2020. Pennant Investors, an existing investor, and Allied Minds each invested $6.85m to accelerate the roll-out of the leading private 4G/5G wireless cloud solution as well as to enable expansion of the spectrum controller for private wireless networks into the 6GHz band for 5G services. This extends the total Series C raise to $65m. Following the investment, Allied Minds owns 36.6% of Federated Wireless on a fully diluted basis (43.1% undiluted). We calculate Allied Minds’ holding in Federated Wireless alone to be worth 26.3p (fully diluted) versus the closing share price on 21 April 2020 of 26.4p.

Allied Minds - FW accelerates Microsoft and AWS partnerships

United Kingdom

Allied Minds PLC is a company that forms, funds, manages and builds startups based on early-stage technology originating from U.S. universities and federally funded research institutions.  The Company provides capital resources for these companies from seed to self-sustainment.

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