Tekcapital shares were higher on Monday as appreciation for their portfolio companies’ progress was starting to be reflected in shares.
Although Tekcapital remains heavily undervalued compared to the sum of the parts of their portfolio companies, Tekcapital shares have begun to tick higher as investors look forward to key events that could unlock further shareholder value.
In a recent update, Tekcapital said food technology company MicroSalt “has been making steady progress towards its planned IPO” and was in “advanced discussions with commercial partners including key players in the snack food industry”.
The potential IPO and traction with ‘key players’ in the food industry could lead to a step change in MicroSalt’s value and drive a substantial re-rate in Tekcapital shares. One may argue this isn’t adequately reflected in shares.
Belluscura has recently demonstrated Tekcapital’s ability to identify technologies with a broad addressable market after announcing two separate deals that represent significant revenues for Belluscura.
Having founded Belluscura, conducted early funding, and subsequently listing Belluscura on London’s AIM, Tekcapital retains an 11% stake in the medical device company, which recently announced a landmark $55m royalty agreement with a Chinese partner.
Tekcapital issued a separate update on Guident in August and alluded to the testing of their regenerative shock absorbers with a Teir-1 tire organisation and progress in developing their autonomous vehicle safety technology.
Both of Guident’s technologies target multibillion-dollar industries, and commercial traction could result in a valuation that dwarfs the current $20m recorded on Tekcapital’s balance sheet.
Finishing with Innovative Eyewear, we recently spoke with CEO Harrison Gross, who spoke of excitement around licensing deals with Reebok, Eddie Bauer and Nautica launching in the coming months. Innovative Eyewear has developed the world’s first ChatGPT-enabled smart eyewear and hopes to capitalise on its first-mover advantage through partnerships with leading fashion and lifestyle brands.