Hygrovest Ltd (ASX:HGV, OTC:MMJJF) increased its pre-tax Net Tangible Asset Value during October by 2% to A$0.1075, up from A$0.1055 a month earlier, and this represented the best result for the past four quarters with A$0.1037 and A$0.1028 the two previous amounts.
This was primarily due to a 5% increase in the Enterprise Value to Net Revenue Multiple (EV/NRM) used by HGV when valuing its investment in unlisted Canadian company Weed Me Inc.
About Hygrovest
Hygrovest is an Australian-listed, specialist investment company that has traded on the ASX since 2015. Its investment manager is HD Capital Partners Pty Ltd, which was appointed to that role for five years commencing July 1, 2023.
In its monthly investment report, HD outlined that HGV’s Net Tangible Asset (NTA) per share post-tax was A$0.0960 at October 31, 2024, from A$0.0947 the previous month and overall Net Asset Value per share was A$0.0963, up from A$0.0951.
HGV’s share prices for the last four quarters were A$0.042, $0.046, $0.054 and most recently $0.054 with the company currently trading at $0.05.
Sale of DHB shares
An important development for Hygrovest during October was the sale of its shares in Delivra Health Brands Inc. (TSX-V:DHB) (DHB) for total consideration of approximately C$1.1 million with these funds now received.
The sale price reflected a materially higher consideration than the carrying value of the investment at the time HD became manager of HGV.
HD said that like its investment in Emerging Therapeutics Group, which HGV also recently sold, these shares were acquired under the company’s previous investment strategy.
The DHB sale “reflects an ongoing focus on divesting non-core assets in a rational and patient manner, and only when doing so is in the best interests of HGV shareholders,” the investment report said.
This leaves Weed Me as Hygrovest’s last remaining legacy investment of significance.
HD cautions that HGV’s reported month-end NTA is a point-in-time assessment only and that HGV’s NTA is constantly fluid. A 15% discount is applied to the derived valuation multiple applied to the Weed Me holding to account for the fact it is unlisted.