Augmentum Fintech Plc - No Material Impact on Augmentum - Silicon Valley Bank
13 March 2023
Augmentum Fintech plc
Statement in respect of Silicon Valley Bank – No Material Impact on Augmentum
Augmentum Fintech plc (LSE: AUGM) (the “Company” or “Augmentum”), Europe’s leading publicly listed fintech fund notes the statement1 from the Bank of England that, absent any meaningful further information, it intends to apply to the Court to place Silicon Valley Bank UK Limited (“SVB UK”) into a Bank Insolvency Procedure.
The impact on the Company, directly and indirectly via the Company’s portfolio, is not material.
Augmentum itself has no direct exposure to SVB UK, nor to its parent company in the United States, nor to any Silicon Valley Bank affiliate entity. As at 12 March 2023, Augmentum had cash and cash equivalents of approximately £40million. This amount excludes the £22.8 million due from the proposed acquisition of portfolio company Cushon by the NatWest Group, which is expected to be received by the Company on completion of the transaction in Q2 2023 following, inter alia, receipt of the necessary regulatory approvals.
Of the 25 companies in Augmentum’s portfolio, only two have balances with SVB UK. These two companies also have sufficient funds at other UK Tier 1 banks to continue trading whilst a resolution is sought. Together the two companies represent 2.6% of the Company’s NAV of £292.1 million2 and neither are in the Company’s top ten portfolio holdings.
2. Unaudited NAV before performance fee as at 30 September 2022. Excludes the expected uplift from the proposed acquisition of portfolio company Cushon by the NatWest Group.
Peel Hunt LLP
Singer Capital Markets
Frostrow Capital LLP
About Augmentum Fintech
Augmentum invests in fast growing fintech businesses that are disrupting the financial services sector. Augmentum is the UK’s only publicly listed investment company focusing on the fintech sector in the UK and wider Europe, having launched on the main market of the London Stock Exchange in 2018, giving businesses access to patient capital and support, unrestricted by conventional fund timelines and giving public markets investors access to a largely privately held investment sector during its main period of growth.
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