Bolt's EUR150m capital raise and portfolio update

RNS Number : 9292I

TMT Investments PLC

17 December 2020

 

17 December 2020

TMT INVESTMENTS Plc

("TMT" or the "Company")

Bolt's €150 million capital raise and portfolio update

TMT Investments Plc (AIM: TMT.L), the venture capital company investing in high-growth technology companies, is pleased to announce the following developments in the Company's portfolio since the publication of the Company's previous portfolio update on 12 November 2020.

Bolt

TMT's portfolio company Bolt, a leading international ride-hailing and food delivery company ( www.bolt.eu ), announced, on 16 December 2020, that it had successfully raised €150 million (US$182 million) in an equity finance round led by D1 Capital Partners.   The transaction represents a substantial valuation uplift of approximately US$14.1 million (or 64%) in the value of TMT's investment in Bolt, compared to the previous amount as of 30 June 2020.

Other positive revaluations

· In November 2020, MEL Science, an EdTech company focused on VR-assisted chemistry and physics experiment subscription kits for children ( www.melscience.com ), completed a new US$14 million equity funding round.  The transaction represented a revaluation uplift of US$0.66 million (or 33.2%) in the fair value of TMT's investment in MEL Science, compared to the previous amount as of 30 June 2020.

· In November 2020, Scalarr Inc. ("Scalarr"), a machine learning-based fraud detection solution focused on the advertising market ( www.scalarr.io ), completed a new equity funding round.  The transaction represented a revaluation uplift of US$0.76 million (or 50.4%) in the fair value of TMT's investment in Scalarr, compared to the previous amount as of 30 June 2020.

These revaluations, which are in addition to the approximate US$1.0 per share increase in the Company's net asset value ("NAV") as a result of the Pipedrive disposal announced on 12 November 2020, collectively will result in a further significant increase in the Company's NAV equivalent to approximately US$0.53 per share (before adjustments for the Company's ongoing operating expenses, accrued bonus, potential future revaluations/impairments, and similar items).  This represents a material uplift in the Company's NAV of approximately 15.3%, and when aggregated with the Pipedrive disposal an uplift of 44.1%, from the previously stated figure of US$3.46 per share as of 30 June 2020.

New investments

The Company has also made the following new investments since the publication of its portfolio update on 12 November 2020:

·US$750,000 in Virtual Mentor Inc., trading as All Right, an online school for children from 4 years old to learn English (www.allright.com/en/);

· US$500,000 in NovaKid Inc., an online school for children aged 4-12 to learn English (www.novakidschool.com);

·£1,000,000 in MTL Financial Ltd, trading as Outfund, a UK-based revenue-based financing provider (www.out.fund);

·Additional US$500,000 in Scalarr, a machine learning-based fraud detection solution focused on the advertising market (www.scalarr.io);

·€150,000 in Postoplan OÜ, a social network marketing platform, which helps create, schedule, and promote content (www.postoplan.app); and

·Additional £1,000,000 in Feel Holdings Limited, a subscription-based innovative multivitamin and supplement producer (www.wearefeel.com).

Alexander Selegenev, Executive Director of TMT, said:

"TMT was one of the earliest investors in Bolt, in September 2014, so we are delighted to see that Bolt's differentiated business model has again been recognised by major investors and has led to this successful €150 million equity funding round. Bolt has been quick to seize opportunities in its markets, whilst managing its cost base and is now well placed to pursue its 2021 expansion plans. Our focus as investors, is in identifying companies that will generate significant shareholder value. Our recent US$41 million cash exit from Pipedrive, announced in November 2020, generated a total cash return of over 51 times on our original investments and is another example of generating significant value for our shareholders."

Alexander Selegenev, Executive Director of TMT, added:

"In the 10 years since its admission to AIM in December 2010, TMT has made over 65 investments worldwide and realised 14 full and partial profitable exits, generating US$82 million in cash exits and other proceeds compared to US$20 million raised upon admission. Whilst some of our holdings, such as Bolt are now globally established companies in their expansion stage, many others are in their early or growth stages, as the recent investments announced today show. This combination provides investors in TMT with exposure to a portfolio of high growth technology companies diversified by sector, geography, growth stage and customer base. Today's announced investments include additional investments in some of our most promising companies and investments in EdTech companies, a sector in which we are seeing strong growth. We continue to seek to identify attractive investment opportunities and will keep the market updated of developments in this regard."

This announcement is inside information for the purposes of Article 7 of EU Regulation 596/2014.

TMT Investments Plc Alexander Selegenev Executive Director www.tmtinvestments.com	[phone] (Computershare - Company Secretary) [e-mail]
Strand Hanson Limited (Nominated Adviser) Richard Tulloch / James Bellman	[phone]
Hybridan LLP (Broker) Claire Louise Noyce	[phone]
Kinlan Communications David Hothersall	[phone] [e-mail]

About TMT Investments Plc

TMT Investments Plc invests in high-growth technology companies across a number of core specialist sectors and has a significant number of Silicon Valley investments in its portfolio. Founded in 2010, TMT has invested in over 65 companies to date and has net assets of US$101 million as of 30 June 2020.  The Company's objective is to generate an attractive rate of return for shareholders, predominantly through capital appreciation.  The Company is traded on the AIM market of the London Stock Exchange. www.tmtinvestments.com .

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