Proactiveinvestors United Kingdom Adamas Finance Asia https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Adamas Finance Asia RSS feed en Wed, 26 Jun 2019 21:55:59 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Adamas Finance Asia eyes further repositioning of investment portfolio ]]> https://www.proactiveinvestors.co.uk/companies/news/222480/adamas-finance-asia-eyes-further-repositioning-of-investment-portfolio-222480.html Adamas Finance Asia Ltd’s (LON:ADAM) investment manager made significant progress restructuring the portfolio last year and invested in a number of SME businesses the board believes have "strong prospects".

Net asset value remained largely flat at US$93mln over the course of 2018, having started the year at US$93.6mln, while NAV per share fell to US$1.13 from US$1.22.

READ: Adamas Finance Asia says workers at HKMH are now active on-site, key management appointed

The dip in NAV resulted from the swing to a net loss of US$3.5mln from the US$11.7mln profit the prior year amid the portfolio restructuring, which principally included the completion of the disposal of China-based private equity assets, partly offset by an increase in the value of Adamas’ stake in Hong Kong Mining Holdings (HKMH) by US$3.1m from 79% to 85%.

Investment changes orchestrated by Hong Kong-based manager Harmony Capital saw the Chinese assets exchanged for a convertible bond in the Fook Lam Moon chain of restaurants in Hong Kong and another US$3mln was received from the disposal of Global Pharm.

New investments in the period were made in Singapore-headquartered DocDoc, which offers a “doctor discovery platform” across eight Asian countries and received a US$2mln cash injection from Adamas, and a US$4m loan paying 17.5% coupon made to support the development of a premium ski accommodation project in Niseko, Japan.

With Adamas counting year-end cash of US$8.8mln, Harmony was eyeing new investments including a US$5mln convertible bond for innovative needle-free injectors developer PharmaJet.

Chairman John Croft said the board was “extremely encouraged by the considerable progress” made by the Harmony in seeking out new income generating investment opportunities, while NAV should benefit from mining operations at HKMH restarting in the second half of 2019.

Croft said increasing the liquidity of Adamas stock was “a key priority, one we will continue to take further actions to improve during the coming year”.

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Thu, 20 Jun 2019 07:56:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/222480/adamas-finance-asia-eyes-further-repositioning-of-investment-portfolio-222480.html
<![CDATA[News - Adamas Finance Asia says workers at HKMH are now active on-site, key management appointed ]]> https://www.proactiveinvestors.co.uk/companies/news/215935/adamas-finance-asia-says-workers-at-hkmh-are-now-active-on-site-key-management-appointed-215935.html Adamas Finance Asia Limited (LON:ADAM) has revealed that workers at Hong Kong Mining Holdings Limited (HKMH) are now active on-site and that key management personal have been appointed to the business, in which the investment firm owns an 84.81% stake.

However, the London quoted pan-Asian diversified investment vehicle said, due to minor unanticipated regulatory delays, HKMH has advised that production is now expected to recommence in the second half of 2019.

READ: Adamas Finance Asia unveils up to US$500,000 share buy-back programme and plans for off-market share repurchases

In a brief statement, ADAM added: “We look forward to publishing a further update to shareholders in due course on this project.”

HKMH is a natural resources company whose primary asset is a large dolomite magnesium limestone mine in the province of Shanxi, China.

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Wed, 06 Mar 2019 15:33:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/215935/adamas-finance-asia-says-workers-at-hkmh-are-now-active-on-site-key-management-appointed-215935.html
<![CDATA[Media files - Adamas Finance Asia shares now available on multiple online trading platforms ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/12386/adamas-finance-asia-shares-now-available-on-multiple-online-trading-platforms-12386.html Thu, 28 Feb 2019 15:30:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/12386/adamas-finance-asia-shares-now-available-on-multiple-online-trading-platforms-12386.html <![CDATA[News - Adamas Finance Asia unveils up to US$500,000 share buy-back programme and plans for off-market share repurchases ]]> https://www.proactiveinvestors.co.uk/companies/news/215196/adamas-finance-asia-unveils-up-to-us500000-share-buy-back-programme-and-plans-for-off-market-share-repurchases-215196.html Adamas Finance Asia Limited (LON:ADAM) has unveiled plans to buy-back up to US$500,000 of its own shares and also announced it has reached an agreement for the off-market purchase of 730,529 of its ordinary shares for a price of US$0.10 each, an aggregate purchase price of US$73,053.

The London-quoted pan-Asian diversified investment vehicle said the share repurchase programme will commence on 25 February 2019 and is due to be completed by the end of 2019.

WATCH: Adamas Finance Asia shares now available on multiple online trading platforms

The company has appointed VSA Capital to manage the share buy-back programme on its behalf, subject to pre-agreed parameters including a maximum price of US$0.79 per ordinary share - being a 25% discount to the group’s proforma net asset value per share of US$1.06.

In a separate statement, ADAM said the additional off-market purchase of shares is being made from Deloitte Financial Advisory Pty Ltd - as liquidators of the Avestra Accelerator Fund and Avestra Maximiser Fund - and Oak Point Partners, an investment firm specialising in the acquisition of remnant assets.

The company said the trades have not yet completed, and a further announcement will be made when they occur.

Following the purchase, ADAM said it will hold the shares bought back and purchased off-market as treasury shares.

Commenting on the buyback, ADAM chairman John Croft, Chairman said: "This marks another positive development in addressing historic outstanding issues.”

And, separately, the investment group pointed out that its shares are currently tradeable on a range of the UK and international platforms, with the recent publication of the company's Key Information Document (KID) expected to enable Adamas shares to be added to the fund, or closed-end fund lists available for investors' online trading.

ADAM said the full KID is available to view and download on its website along with further information on the company's investment strategy and growth prospects at http://adamasfinance.com/investors.  

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Mon, 25 Feb 2019 09:15:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/215196/adamas-finance-asia-unveils-up-to-us500000-share-buy-back-programme-and-plans-for-off-market-share-repurchases-215196.html
<![CDATA[News - Adamas Finance Asia Ltd flies under the radar; but for how long? ]]> https://www.proactiveinvestors.co.uk/companies/news/214360/adamas-finance-asia-ltd-flies-under-the-radar-but-for-how-long-214360.html  

Contrary to popular belief, markets aren’t necessarily the most efficient arbiters of value. Even our blue-chips have the potential to surprise – usually on the downside.

Market efficiency requires two elements: perfect information and liquidity.

WATCH: Adamas Finance Asia to invest in developer of needle-free injection technology

On London’s alternative bourse, both are in short supply, which throws up anomalies.

A possible case in point is Adamas Finance Asia Ltd (LON:ADAM), or ADAM for short.

Transformation 

The investment company has undergone and is still undergoing something of a transformation – one designed to help unlock significant latent value.

Under Harmony Capital, which has been managing ADAM’s portfolio since May 2017, historic investments in China have been restructured and will hopefully be monetised in short order.

This will enable Suresh Withana, managing partner of Harmony Capital, and his team to focus on their real goal of unearthing investable gems from among Asia’s small- and medium-sized companies (SMEs).

ADAM under Harmony Capital’s management is probably the only listed investment company of its type in London focusing on Asia’s SME sector.

Withana and his team have considerable experience in this regard, having managed the successful US$270mln Harmony Investment Fund I which had a similar mandate to that of ADAM today.

You can see why Harmony has focused on the region. There are 270mln SMEs and an estimated US$2.7trn funding gap present in Asia.

So far, ADAM has invested in a virtual doctors’ network, a luxury ski resort in Japan and a high-end food and beverage business. There’s also a proposed investment in a maker of needle-free injections.

The deals have been financed via traditional debt and convertible loans. Its proposed PharmaJet investment allows it to convert debt into equity on favourable terms at a “liquidity event” such as an initial public offering.

The returns are high (coupons on the debt can be double-digit), but then ADAM is operating at the riskier end of the investment market. That being said, Harmony Capital ensures that transactions are structured with strong downside protection in place to protect ADAM’s interests.

It should also be stressed, these are not throw-of-the-dice opportunities. Harmony’s team can spend as long as six months on due diligence. “Independent valuations are carried out at arms’ length,” Withana adds.

Asian contacts

Harmony’s contacts around Asia mean there are plenty of deals to be done.

“We have a very significant pipeline of opportunities; a number at the term sheet stage,” Withana explains.

So with a unique approach – and the intention of paying a dividend along with capital growth – why is the company’s share price trading at a 47% discount to its last available net asset value (NAV)?

Well, ADAM has a number of Chinese legacy assets that are perhaps viewed (possibly wrongly) as a drag on performance.

Harmony Capital inherited these investments, which includes a majority-ownership and control of the largest magnesium dolomite mine in Shanxi Province, China. This is also ADAM’s largest single holding.

“We are looking to exit from them all,” says Withana. “What could I foresee in the next 12 months? That the majority are either monetised or close to being monetised.”

Exiting these positions would free up cash that could then be ploughed into pan-Asian (rather than solely Chinese) opportunities.

Adamas launches share buyback 

ADAM has launched a US$500,000 share buyback and has reached an agreement for the off-market purchase of 730,529 of its ordinary shares for a price of US$0.10 each, an aggregate purchase price of US$73,053.

The share repurchase programme started on 25 February 2019 and is due to be completed by the end of 2019.

The company has appointed VSA Capital to manage the share buy-back programme on its behalf, subject to pre-agreed parameters including a maximum price of US$0.79 per ordinary share - being a 25% discount to the group’s proforma net asset value per share of US$1.06.

"This marks another positive development in addressing historic outstanding issues," said chairman John Croft. 

ADAM said the additional off-market purchase of shares is being made from Deloitte Financial Advisory Pty Ltd - as liquidators of the Avestra Accelerator Fund and Avestra Maximiser Fund - and Oak Point Partners, an investment firm specialising in the acquisition of remnant assets.

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Mon, 11 Feb 2019 11:48:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/214360/adamas-finance-asia-ltd-flies-under-the-radar-but-for-how-long-214360.html
<![CDATA[Media files - Adamas Finance Asia to invest in developer of needle-free injection technology ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/11846/adamas-finance-asia-to-invest-in-developer-of-needle-free-injection-technology-11846.html Tue, 15 Jan 2019 09:06:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/11846/adamas-finance-asia-to-invest-in-developer-of-needle-free-injection-technology-11846.html <![CDATA[News - Adamas Finance Asia to invest up to US$5mln in a developer of needle-free injection technology ]]> https://www.proactiveinvestors.co.uk/companies/news/212466/adamas-finance-asia-to-invest-up-to-us5mln-in-a-developer-of-needle-free-injection-technology-212466.html Adamas Finance Asia Limited (LON:ADAM) said it plans to invest up to US$5mln into the developer of needle-free injection technology.

PharmaJet Inc’s innovative technology has received US Food & Drug Administration marketing clearance, is CE-Marked in Europe and is PQS certified by the World Health Organisation.

WATCH: Adamas Finance Asia to invest in developer of needle-free injection technology

PharmaJet, which has a distribution agreement with a company called Mundipharma, is hoping to raise between US$12-US$20mln to expand the business, particularly in Asia. 

The latest funding round could also pave the way to the stock market listing of PharmaJet on the Singapore exchange “and/or” NASDAQ in the US.

Asia-focused investment vehicle ADAM is ploughing its money into the business via a convertible bond structure. The convertible bond has a four-year maturity and an annual coupon of 10%.

READ: Adamas Finance Asia sees net asset value rise as investment opportunities beckon

The bond itself can be converted at ADAM’s discretion at a 40% discount to the pre-money valuation of the shares established by a liquidity event such as an IPO of PharmaJet.

“This investment represents another example of the attractive opportunities available to ADAM in capturing fundamental growth driven by Asia via a structured instrument which will provide income and potential capital gain," said chairman John Croft.

In the same announcement, ADAM said it still awaiting US$12.6mln of subscription funds from Fortune Insight following the sale Global Pharm Holdings Group.

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Mon, 14 Jan 2019 07:39:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/212466/adamas-finance-asia-to-invest-up-to-us5mln-in-a-developer-of-needle-free-injection-technology-212466.html
<![CDATA[Media files - Adamas Finance Asia invests in Japanese tourism-focused real estate development ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/11603/adamas-finance-asia-invests-in-japanese-tourism-focused-real-estate-development-11603.html Thu, 13 Dec 2018 15:27:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/11603/adamas-finance-asia-invests-in-japanese-tourism-focused-real-estate-development-11603.html <![CDATA[Media files - Adamas Finance Asia releases first key piece of research on execution of strategy ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/10990/adamas-finance-asia-releases-first-key-piece-of-research-on-execution-of-strategy-10990.html Fri, 26 Oct 2018 02:17:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/10990/adamas-finance-asia-releases-first-key-piece-of-research-on-execution-of-strategy-10990.html <![CDATA[Media files - Adamas Finance Asia seeing an increasing number of future investment opportunities ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/10474/adamas-finance-asia-seeing-an-increasing-number-of-future-investment-opportunities-10474.html Fri, 14 Sep 2018 11:22:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/10474/adamas-finance-asia-seeing-an-increasing-number-of-future-investment-opportunities-10474.html <![CDATA[News - Adamas Finance Asia sees increasing investment opportunities ]]> https://www.proactiveinvestors.co.uk/companies/news/204806/adamas-finance-asia-sees-increasing-investment-opportunities-204806.html Asia-focused investment vehicle Adamas Finance Asia Limited (LON:ADAM) lifted net asset value by 1.5% in its latest half year.

Consolidated NAV at 30 June was US$95mln,up from US$93.6mln.

WATCH: Adamas Finance Asia seeing an increasing number of future investment opportunities

The transition of the business through the diversification of legacy assets and investing in new opportunities in Asia is well underway, said chairman, John Croft.

“Early in the period, we announced our first new investment since Harmony Capital was appointed, in DocDoc, which we believe to be Asia's leading patient empowerment company.”

DocDoc uses proprietary data and clinical informatics across a network of physicians and hospitals to support patients to find high-quality medical care.

Net losses for the half-year were US$1.44mln (Half year 2017: US$1.03mln) with a consolidated loss per share of US$1.77.  

“There is an increasing number of future investment opportunities open to ADAM,” added Croft.

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Thu, 13 Sep 2018 08:13:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/204806/adamas-finance-asia-sees-increasing-investment-opportunities-204806.html
<![CDATA[Media files - Adamas Finance Asia says it had a ‘very good year in 2017’ ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/9692/adamas-finance-asia-says-it-had-a-very-good-year-in-2017-9692.html Mon, 25 Jun 2018 15:32:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/9692/adamas-finance-asia-says-it-had-a-very-good-year-in-2017-9692.html <![CDATA[News - Net asset value rises at Adamas Finance Asia ]]> https://www.proactiveinvestors.co.uk/companies/news/199295/net-asset-value-rises-at-adamas-finance-asia-199295.html Asia-focused investment company Adamas Finance Asia Limited (LON:ADAM) posted a strong increase in net asset value in 2017 after an overhaul of its portfolio.

NAV rose by US$15.8mln to US$93.6mln, which reflected a US$19.6mln net rise in the portfolio's value compared to the previous year.

READ: Adamas Finance Asia ready to expand again as portfolio restructuring draws to close

On a per share basis, NAV rose to US$1.22 from US$0.40 while there was a net profit of US$11.7mln (2016: US$37.2mln loss).

Cash at the year-end amounted to US$13.2mln.

John Croft, chairman, said significant progress had been made in reshaping the portfolio.

"Overall, I am confident that 2018 will be a year of further progress both with disposals and new investments as we move towards a predominantly income generating portfolio which will allow us to make regular dividend distributions to our shareholders."

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Thu, 21 Jun 2018 07:43:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/199295/net-asset-value-rises-at-adamas-finance-asia-199295.html
<![CDATA[News - Adamas Finance Asia sees net asset value rise as investment opportunities beckon ]]> https://www.proactiveinvestors.co.uk/companies/news/194974/adamas-finance-asia-sees-net-asset-value-rise-as-investment-opportunities-beckon-194974.html Asia-focused investment vehicle Adamas Finance Asia Limited (LON:ADAM) has lifted its net asset value by 1.5% in its latest half year.

Consolidated net asset value (NAV) at 30 June was US$95mln, up from US$93.6mln.

READ: Adamas Finance Asia sees increasing investment opportunities

The transition of the business through the diversification of legacy assets and investing in new opportunities in Asia is well underway, said chairman John Croft.

“Early in the period, we announced our first new investment since Harmony Capital was appointed, in DocDoc, which we believe to be Asia's leading patient empowerment company.”

DocDoc uses proprietary data and clinical informatics across a network of physicians and hospitals to support patients to find high-quality medical care.

Net losses for the half-year were US$1.44mln (Half year 2017: US$1.03mln) with a consolidated loss per share of US$1.77. 

“There is an increasing number of future investment opportunities open to ADAM,” added Croft.

Core investments

DocDoc is one of three core investments alongside dolomite mine Hong Kong Mining and a Hong Kong-based food and beverage business.

Adamas was issued with a US$26.5mln convertible bond in the business earlier this year in an asset swap transaction.

The consideration matched book value and Suresh Withana, Harmony Capital’s managing partner and Adamas’ investment manager, was delighted with the price.

Hong Kong Mining, meanwhile, is in the process of re-starting operations at its mine in Shanxi Province, China.

Withana, however, says he and his team are very busy looking for other opportunities.

Very few other companies are doing what it does, he says, with a dearth of capital for small Asia-based companies.

That may seem strange, but after the 2008 global credit crunch the emphasis switched to state-backed or blue-chip companies with some countries even banning banks lending money to companies below a certain size or certain sectors.

Capital-starved SMEs

“The private sector is starved of capital from markets and banks across the region even in places such as China, Hong Kong, Singapore and Australia.”

“There are lots of opportunities for income-producing assets, fundamentally small and medium-sized companies that cannot raise capital as they are not big enough.”

That has created a very nice space for ADAM, adds Withana and now that the major work on the legacy portfolio is complete, the emphasis again is on expansion.

“For a year we have been very focused on getting the house in order, now we are in a position to actively start to do that.

“It’s like starting again.”

At 0.6p, Adamas has a market cap of £37.5mln.

 

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Mon, 16 Apr 2018 06:01:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/194974/adamas-finance-asia-sees-net-asset-value-rise-as-investment-opportunities-beckon-194974.html
<![CDATA[News - Adamas Finance Asia to receive US$15.6mln for Global Pharma stake soon ]]> https://www.proactiveinvestors.co.uk/companies/news/194022/adamas-finance-asia-to-receive-us156mln-for-global-pharma-stake-soon-194022.html Adamas Finance Asia Limited (LON:ADAM) has been informed by the buyer of its interest in Global Pharma Holdings Group that funding to complete the deal has been secured.

The Asia-focused investment group was due US$15.6mln in cash by 31 March from Fortune Insight Limited (FIL), which is acquiring the stake.

WATCH: Adamas Finance Asia swaps chunk of legacy portfolio for new Hong Kong investment

FIL has now confirmed to Adamas that it is finalising the paperwork to complete the transaction and that the US$15.6mln would be paid in the near future.

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Thu, 29 Mar 2018 09:27:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/194022/adamas-finance-asia-to-receive-us156mln-for-global-pharma-stake-soon-194022.html
<![CDATA[Media files - Adamas Finance Asia 'incredibly busy' with opportunities after first two investments ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/8958/adamas-finance-asia-incredibly-busy-with-opportunities-after-first-two-investments-8958.html Tue, 27 Mar 2018 13:46:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/8958/adamas-finance-asia-incredibly-busy-with-opportunities-after-first-two-investments-8958.html <![CDATA[News - Adamas Finance Asia increases stake in dolomite mine ]]> https://www.proactiveinvestors.co.uk/companies/news/193866/adamas-finance-asia-increases-stake-in-dolomite-mine-193866.html Adamas Finance Asia Limited (LON:ADAM)  has increased its indirect shareholding in Hong Kong Mining Holdings Ltd (HKMH) to 84.81% from 79.26%.

The Asia-focused investment group issued around 4.28mln shares at US$1.20 each to buy out certain minority shareholders in HKMH.

WATCH: Adamas Finance Asia 'incredibly busy' with opportunities after first two investments

The vendors are also waiving repayment of loans to the miner to the value of US$5.36mln approximately.

HKMH is in the process of re-starting operations at its dolomite mine in Shanxi Province, China.

Adamas’ stake in HKMH is held through a wholly-owned subsidiary, Dynamite Win Limited.

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Tue, 27 Mar 2018 10:11:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/193866/adamas-finance-asia-increases-stake-in-dolomite-mine-193866.html
<![CDATA[News - Adamas Finance Asia taps into healthcare as new team makes first investment ]]> https://www.proactiveinvestors.co.uk/companies/news/193363/adamas-finance-asia-taps-into-healthcare-as-new-team-makes-first-investment-193363.html Asia-focused investment company Adamas Finance Asia Limited’s (LON:ADAM) new management team has made its maiden investment.

DocDoc fits the new investment remit of pan-Asian income producing assets with capital gain potential, said Harmony Capital, which took over in May 2017.

Up until now, it has been restructuring the portfolio, but this is the first addition.

READ: Adamas Finance Asia looks further afield for SME winners

Based in Singapore, DocDoc uses data and clinical information processing across a network of physicians and hospitals to help patients find high-quality medical care.  

DocDoc currently has a network of over 23,000 physicians, 700 clinics and 100 hospitals and the company believes there is a significant unmet need in the marketplace for patient empowerment in Asia.

This will give better-priced treatments, outcomes and patient experiences.

Agreements have already been tied up with leading insurers in the region such as Ping An and Prudential said John Croft, Adamas’ chairman,

DocDoc is an exciting next-generation digital health platform, adeptly fulfilling patient demand and supported by its partnerships with these leading players, he added.

Adamas was the lead investor in DocDoc's latest US$5.45M round of investment via a US$2mln subscription to a convertible bond offering. 

Cole Sirucek, DocDoc's co-founder and chief executive, added: “Their [Adamas] investment has come at a most opportune time as we scale our value-added doctor discovery service in conjunction with the region's largest insurance companies.“ 

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Mon, 19 Mar 2018 08:09:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/193363/adamas-finance-asia-taps-into-healthcare-as-new-team-makes-first-investment-193363.html
<![CDATA[News - Adamas Finance Asia looks further afield for SME winners ]]> https://www.proactiveinvestors.co.uk/companies/news/191446/adamas-finance-asia-looks-further-afield-for-sme-winners-191446.html AIM is littered with husks of companies that tried and failed to make it big in China.

Non-existent corporate governance, disappearing executives, blue sky and nothing else have been all too prevalent.

While it’s fair to say things have improved, the scars remain and so it’s perhaps understandable the new manager of AIM-listed investment company Adamas Finance Asia Limited (LON:ADAM) wants to broaden its reach.

The original remit was predominantly to offer private credit (loans in essence) to small and medium-sized companies in China not able to get funds from traditional sources such as the banks.

Harmony Capital, which took over management of the US$78mln portfolio in May last year says while the private credit market in China is still a massive sector, things have changed.

Pan-Asia the opportunity

The opportunity across the whole continent of Asia is now much larger and, so, Pan-Asia is the new focus.

Obviously, that includes China, says Suresh Withana, Harmony Capital’s managing partner, but now not exclusively so.

Australia, Hong Kong, Singapore, Indonesia - companies based in any of these places are fair game, he says.

To free up capital, Harmony Capital has started to work through its existing portfolio, raising liquidity where possible.

WATCH: Adamas Finance Asia on the front foot and delivering on new investment strategy

Withana can see 40-50% of the US$78mln worth of assets at the last half-year end being changed once the process is substantially complete.

Money is due from a number of redeemed investments or in the case of dolomite/magnesium miner Hong Kong Mining, Adamas has taken a 79.3% stake following the failure of the business to complete a listing.

Adamas will invest more broadly and Withana has an open mind as to the types of companies Adamas now targets.

“We are sector agnostic” he told Proactive, though being Asia-focused will naturally pull it towards consumption plays, healthcare, fintech and energy/resources.

Typically for every US$100mln it has to invest, Adamas will look for 5-10 opportunities, he adds, that way its stakes are not too small nor do they dominate the portfolio.

Harmony has a network of contacts across Asia from which to source investment ideas, but Withana says for the management of a particular target company to have a large stake in their own business is probably one of its only hard and fast rules.

Adamas and Harmony have some owners in common, so it is not completely independent. However, Harmony Capital is run as its own independent unit focussed entirely on managing the listed vehicle.

Track record

Withana, though, points to a track record at Harmony that includes a fund not dissimilar to Adamas Finance Asia which deployed US$275mln at its peak before its dissolution.

Adamas Finance Asia market capitalisation is currently about US$53mln, which is a hefty discount to its stated asset value.

Withana recognises the legacy issues of being an AIM-listed investor specialising in China may be a reason for this, but says the fact that Adamas Finance Asia is a permanent capital vehicle means it can take a pan-Asian long-term view when it comes to allocating its cash.

The hubris that came with an AIM listing also belongs to a different generation, he says.

“We need to put our money where our mouth is, demonstrate what we are doing works and people will start to take us seriously.”

The first test will be the upcoming asset value update, which will show how much capital Withana has to play with, but he is upbeat.

“The demographics and predominantly aspirational Asian population mean the fundamentals have a long way to go.

“I’m a big believer in Asia.”

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Fri, 09 Feb 2018 11:02:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/191446/adamas-finance-asia-looks-further-afield-for-sme-winners-191446.html
<![CDATA[Media files - Adamas Finance Asia on the front foot and delivering on new investment strategy ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/8716/adamas-finance-asia-on-the-front-foot-and-delivering-on-new-investment-strategy-8716.html Wed, 07 Feb 2018 11:50:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/8716/adamas-finance-asia-on-the-front-foot-and-delivering-on-new-investment-strategy-8716.html