[UPDATES 6 and 7 AUGUST]....and the revelation of fraud and Market Abuse at the Albion VCTs just gets worse by the day
As I analyse the "investments" held by AAEV ahead of its AGM to be held on 10 September it is clear that there are some serious questions to be answered...
Just taking the aggregate of the 3 VCTs holdings of AAEV's audited "big 5" that account for nearly 50% of all its investments and - all amounts as at 31 March 2025 per Albion websites
1. Quantexa £ 126,343,000 AI Compliance (!) systems
2. Proveca £ 41,348,000 Neurology and Cardiology drugs for children
3. Oviva AG £ 23,504,000 Digital health platform for diabietes/weightloss drugs
4. Gravitee Topco £ 27,406,000 API for event management
5. ConvertR Media £ 15,979,000 Business leads management
A total of £234,580,000 or 43% of all the combined VCT investments.
Quantexa: see other posts - still an evolving story
Proveca: Register of Members awaited to expose true share allotment prices to Albion. to be continued
Oviva: Based in Switzerland - Last funding in 2021. No financials available.
Gravitee Topco: Claims to have raised US$60m in Series C but actually <US$50m per statutory filings. Just like Quantexa
ConvertR Media: now here it gets very complicated so please bear with me as I explain the scam perpetrated on shareholders who sold before the Mergers and on all other shareholders
On 24th September 2024 the now Chairman of AAEV announced a 20% WRITE-DOWN of value of the value of the AADV investment (including convertible Loanstock) in ConvertR.
This followed an emergency secured loan having to be taken out in May 2024.
Now it gets interesting, because the "restructuring" in November 2024 (BEFORE THE VCT MERGERS) required Albion to convert all the high yield loanstock and other loans into Ordinary shares before Clydesdale Bank would agree a new Debenture with ConvertR and every other lender had to be repaid in full from the new share issue or convert debt to equity.
So what did Albion do? Immediately Write-up the investment by 50% but not tell shareholders even though the VCTs were buying back shares on the written down value prior to the Merger NAV recalculation which included the miraculous gain! Which gain somehow increased by another 100% in the following 3 months.
ConvertR then immediately published accounts disclosing the requirement for repayment/conversion of all loans and at the end of April 2025 filed the Confirmation Statement showing the new detailed shareholder positions.
to be continued - including just howfast the loss-making ConvertR is burning through the new bail-out cash.
[AUGUST 7] Lowest ranked? https://crozdesk.com/software/convertr
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[UPDATE 6 AUGUST]
Proveca:
Auditors today confirmed to me their request to the company to file amended accounts for the years ended 31 July 2023 and 2024.
Valuation numbers looking "very very odd" - (remember it is Albion's 2nd largest investment)
Cost of Sales as a percentage of Turnover multiplying threefold in the last 3 years from 7.7% to 21.6%.
R&D expenditure halved
Directors salaries reduced.
Current lender (KREOS Capital) registered another charge only 5 months after the July 2024 share issue.
Seems that condition of new loans was conversion of the principal sum of all prior loans to shares at a "fixed value" to keep Albion below 50% control, and no repayment of accrued interest that totals more than all new loans.
Using a "multiple of turnover" is an inappropriate valuation method when the balance sheet is so week and no new shareholders could be persuaded to invest.
75% impairment write-down?
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OVIVA
Anyone know the result of the German Court case?
Looks like continuing "dodgy" marketing practices - see NHS instances as well (Mumsnet is a good starting point).
Financials anyone?
Perhaps Lord Bethell (paid adviser to OVIVA) can help.
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GRAVITEE
Could Albion be deliberately undervaluing this one that does look like a very good story?
Surely not trying to fix things to manipulate their outrageous fees by a 50% undervalue?
Stated to be worth >$300m but how does that tally with Albion Enterprise VCT's <$150m only 7 days later?
Does Patrick Reeve (Chair of Valuation committee) ever tell the truth?
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Do the Albion VCTs actually have any significant value if "willing buyer willing seller" basis used for 4 of the top 5 assets?
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