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Amphion Innovations PLC: DEEP DIVE

Amphion Innovations provides “concentrated but well-managed portfolio” in high growth sectors

The company invests and helps build companies in the medical and technology sectors, with a target exit valuation of over US$100mln
MRI scanner
OVERVIEW: AMP The Big Picture
One of Amphion's portfolio companies, Polarean, develops products to assist with medical imaging such as MRI scans

• Investment firm focused on medical and technology sectors

• Concentrated portfolio of seven companies

• Aims for exit valuations of over US$100mln

What Amphion does

Amphion Innovations PLC (LON:AMP) is an investment company that focuses on helping build companies in the medical and technology sectors.

The firm currently has shareholdings in seven partner companies that are developing technologies targeting what it says are “substantial commercial marketplaces” worth in excess of US$1bn.

For each one of its partner companies, Amphion has targeted an exit valuation (i.e. the value the company needs to reach before it sells its stake) of over US$100mln.

What Amphion owns

The company has stakes in seven partner companies;

1. Axcess International – 15.07% stake – provides wireless systems that help monitor business activity in real-time in sectors such as transport and security

2. FireStar Software – 11.86% stake – develops software the helps companies to integrate and exchange data electronically in a private, secured structure

3. Polarean Imaging Plc (LON:POLX) – 18.2% stake – develops and sells hyperpolarised gas products that assist with medical imaging such as MRI scans

4. Motif Bio PLC (LON:MTFB) – 6.78% stake – an antibiotic developer focusing on diseases caused by drug-resistant bacteria

5.  PrivateMarkets – 25.33% stake – an online marketplace that links buyers and sellers of physical commodities such as gold and copper

6. WellGen – 24.34% stake – develops foods designed to help treat inflammation-based illnesses. The company also has a proprietary black tea extract that has been demonstrated to improve performance and recovery benefits such as a reduction in muscle soreness and reduced recovery time

7. DataTern – 100% stake – a company established for Amphion to commercialise intellectual properties that originate from its portfolio companies

Inflexion points

• In March, the company reduced its stake in Motif Bio twice, netting it a total of around US$384,656 that would be used to help pay off a loan facility

• In January, Amphion said WellGen had signed a licence agreement with Missouri-based drinks companies Sportables and One11 Innovation and would receive 11% of the profits derived from the commercial development and sale of Workout Tea, a beverage based on a patented and clinically proven anti-inflammatory ingredient derived from a black tea extract

• In December, Polarean raised US$4mln through a share placing, with Amphion subscribing for around 18.2% of the enlarged share capital and remaining the largest stakeholder

Blue Sky

Bob Bertoldi, president of Amphion, said in December that for investors Amphion provides “a very concentrated but well-managed portfolio in industries that are high growth”.

He adds that the company is “the anthesis of venture capital” with its goal to grow companies “brick by brick”.

“We’re company builders…our goal is to build good, solid companies” Bertoldi says, adding that even when a company goes public, like Polarean and Motif Bio, the company will stay as a guiding hand to help them grow.

“We don’t just sell out when a company becomes public, we maintain support for those companies when they’re young so later in the cycle we can exit…we’re hands-on investors”.
He also says that while the company’s portfolio is concentrated, it isn’t speculative.

“We believe that we de-risk our investments by the way that we grow our companies…they get intensive management in exciting growth fields”.

With shares currently trading at around 0.38p, Amphion has a market cap of £790,000.

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Amphion Innovations PLC Timeline

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