As part of the ShareBuyers’ going for growth series, we take a look into the growth prospects of Tekcapital shares (TEK) – a unique AIM-listed intellectual property investment company that Executive Chairman Dr. Clifford Gross foresees exceptional opportunity being created for its portfolio companies.
Find out why Dr. Clifford Gross is buoyant on prospects for TEK and also what he’d say to Warren Buffett if he unexpectedly bumped into him!
Firstly, can you tell us a bit about Tekcapital and its value proposition?
Tekcapital PLC (TEK) listed on the AIM Market is an intellectual property investment company providing technology and IP services headquartered in Oxford, England, and has offices in Miami, Florida,USA. The Company acquires and commercialises technologies developed by its global network of universities.
The current climate is presenting challenge and opportunity – how has this applied to your business?
All of our portfolio companies have benefited from the current climate.
Belluscura plc, is developing portable oxygen concentrators for individuals with COPD as well as those afflicted with COVID 19. These devices provide supplemental oxygen, are small, light weight and user changeable filters to adapt to disease progression.
Salarius ltd has developed and is marketing MicroSalt®, the worlds smallest edible salt crystals. MicroSalt enables snack food companies to offer full flavour whilst reducing the sodium consumption by approximately 50%. In the current climate individuals are more concerned about their health than ever before. MicroSalt can help reduce hypertension whilst allowing customers to enjoy tfull-flavour snacks.
Lucyd, ltd. has developed smart, prescription eyewear that allows users to stay connected to their digital lives. With Lucyd glasses you can listen to music, take calls, call an UBER, speak with Siri® all without having to look at your smartphone. Every seven minutes a pedestrian or cyclist is struck by a car in the U.S., this is primarily because both are distracted with their smartphones. With Lucyd glasses you can correct your vision with a stylish frame and maintain situational awareness when you’re out and about. Dual small microphones and speakers are built into the arms of the Bluetooth® 5.0 glasses.
Guident, ltd. commercializes new technology to enhance the utility and safety of autonomous vehicles and delivery drones using its proprietary IP & software apps for remote monitoring and control of these vehicles. COVID 19 has greatly accelerated the demand for contactless delivery of food and medicines. Guident is developing remote monitoring and control technology to address potential mishaps with these vehicles, call first responders and remotely move the vehicle out of harms way. The State of Florida has legalized autonomous vehicles but requires remote tele-operation when there is no driver present to address accidents.
Growth catalysts are crucial to business growth – what do you believe yours are?
Our growth catalysts are the milestones for our portfolio companies as follows:
Belluscura plc, is seeking US FDA 510K clearance for its new portable oxygen concentrator. Their new device is covered by 17 patents and has many compelling new features which should provide a competitive advantage. Once FDA clearance is received, Belluscura can move forward to manufacture and sell their much needed product.
Salarius ltd has launched a line of full-flavour, low sodium crisps in May 2020. They are already in 100 stores in North America. They rec kon the number of retail outs offering their product could more than double by year’s end. Additionally, Salarius is seeking have an agreement to supply MicroSalt® to one of the leading snack food companies by year’s end. This would provide a healthier snack option for consumers and would be transformative for the business.
Lucyd, ltd. is developing next gen smartglasses called Lucyd Lyte™. They anticipate launching these glasses in September 2020. What makes these glasses special is they look like designer frames, are packed with new technology, yet cost the same as regular prescription glasses. Additionally, Lucyd is launching a new app called Vyrb in December 2020. Vyrb will allow users to listen and post to their social media accounts with their voice, so no need to take your phone out of your pocket and start typing. Great for people on the go.
Guident, ltd. is seeking to develop partnerships with some of the leading autonomous vehicle companies, fleet operators and telecommunications companies before year’s end to enable the roll out of its remote monitoring and control service for autonomous vehicles.
What are the biggest headwinds you foresee to achieving growth in the coming months and years? How will you tackle them?
All of our portfolio companies are seeking to raise capital to accelerate the development of their businesses. This is a key challenge ,but we believe it is addressable with a combination of portfolio company private placements, coupled with further investment from Tekcapital into these companies.
Imagine you find yourself in a lift with Warren Buffett. What would be your ‘elevator pitch’ to summarise why he should invest in your business?
Tekcapital provide exposure to novel respiratory treatments, safe contactless delivery, food tech for improved cardiovascular health and glasses that enhance pedestrian safety. With each portfolio company addressing $b markets, with capable leadership and a compelling technology moat.
Please note: this discussion with Tekcapital forms part of the ShareBuyers’ going for growth series – helping companies on AIM to share their growth story. It is not a recommendation to buy or sell shares in Tekcapital.