RiverFort Global Opportunities (RGO) , an AIM-listed investment company, issued a trading update for the year ended December 31, 2023 (FY23).
RiverFort noted the successful redemption of its debt and equity-linked portfolio for cash. RGO's cash balance was £1.1m at year-end, rising to a current £2.6m through the partial redemption of its portfolio for £2.2m.
The company ended the period with a NAV of 0.68p/share, compared to a pre-suspension price of 0.22p/share. Trading in RGO was suspended on AIM on March 22, 2024 pending the publication of an admission document related to its potential acquisition of S-Ventures (SVEN) .
RiverFort also noted a profitable partial realisation of its investment in Smarttech247 post-period. Related to the acquisition of SVEN, RGO announced a strategic shift toward becoming a listed operating company in the wellness sector to generate further value.
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RiverFort has traditionally invested in junior listed companies by way of debt or equity-linked debt investments. Returns have principally come through a combination of fees, interest, and other equity-linked or performance-based instruments. It has also sought pre-IPO opportunities that are attractively valued, where there is a clear path to a liquidity event.
Since year-end of FY23, RGO's debt and equity-linked portfolio has been mostly redeemed for c. £2.2m in cash, and the company has focused on becoming an operator in the wellness sector through the abovementioned acquisition of S-Ventures (SVEN). RGO now comprises cash plus a small number of investments, notably in listed companies Smarttech247 and Mindflair, and is therefore well-positioned to embark on the new strategy.
Post year-end, RGO disposed of around half its stake in Smarttech247, boosting its cash balance to £2.6m currently. This should provide it with sufficient working capital to advance its acquisition of S-Ventures and grow the combined business. Following the move, RGO will become an operating company with good potential for growth and value creation. At the same time, SVEN's operations will benefit materially from the additional funding and access to AIM.
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