Investing Policy

Investments will be made in sectors which have, or have the potential for, significant intellectual property, including in the robotics and artificial intelligence (AI) industries (hardware and software) and ancillary and support services (the “Robotics and AI Focus”).

The Board will also consider investment in established industries and sectors where the application and/or adoption of AI and/or robotics is expected to have a material impact on productivity (the “Target Industries”). The main target will be companies which are either public or private, but which are not available to the wider investing public.

Meantime, the Board will continue to manage its legacy portfolio of investments, principally in the wellness and life sciences sectors (including biotech, longevity of life and pharmaceuticals) with a view to realising the full value of these investments. There is no time horizon for the divestment of the existing portfolio of assets, but we expect it to happen within the medium term.

Where potential opportunities emerge that are not within the Robotics and AI Focus, or which are not obviously Target Industries, the Company may still invest where the Board considers the intellectual property of the target company to be sufficiently strong and it considers the target company has the potential to disrupt established markets following further development and future commercialisation (“Disruptive Technologies”). Such investment in Disruptive Technologies might be, for instance, in life sciences, bio-technology, fintech or other technology focused sectors.

The geographical focus will be North America, Europe, and Asia, but investments may also be considered in other regions to the extent that the Board considers that opportunities exist and exceptional positive returns can be achieved.

In selecting investment opportunities, the Board will generally focus on businesses and assets in SMEs with the potential for significant growth. Where appropriate, the Board may seek to invest in businesses where it may influence the business at a board level, add its expertise to the management of the business, and utilise its industry relationships and access to finance. The extent that the Company will be a passive or active shareholder will depend on the interest held and the maturity of the investee company.

The Company's interests in a proposed investment and/or acquisition will range from minority positions to full ownership and will comprise multiple investments. The proposed investments may be in either quoted or unquoted companies; are likely to be made by direct acquisitions or investments; and may be in companies, partnerships, earn-in joint ventures, debt or other loan structures, joint ventures or direct or indirect interests in assets or businesses.

There is no limit on the number of projects into which the Company may invest. The Directors intend to mitigate risk by appropriate due diligence and transaction analysis. The Board considers that as investments are made, and new promising investment opportunities arise, further funding of the Company may also be required.

Where the Company builds a portfolio of related assets it is possible that there may be cross holdings between such assets. The Company does not currently intend to fund any investments with debt or other borrowings but may do so if appropriate. Investments are expected to be mainly in the form of equity, with debt potentially being raised later to fund the development of such assets. Investments in later stage assets are more likely to include an element of debt to equity gearing. The Board may also offer new Ordinary Shares by way of consideration as well as or in lieu of cash, thereby helping to preserve the Company's cash for working capital and as a reserve against unforeseen contingencies.

 The Board will conduct initial due diligence appraisals of potential businesses or projects and, where it believes that further investigation is warranted, it intends to appoint appropriately qualified persons to assist. The Board believes it has a broad range of contacts through which it is likely to identify various opportunities which may prove suitable. The Board believes its expertise will enable it to determine quickly which opportunities could be viable and so progress quickly to formal due diligence. The Board proposes to conduct a comprehensive and thorough project review process in which all material aspects of a potential project or business will be subject to rigorous due diligence, as appropriate. Due to the nature of the sectors in which the Company is focused, it is unlikely that cash returns will be made in the short to medium term on the majority of its portfolio; rather the Company expects a focus on capital returns over the medium to long term.