It's coming to a year since Trendlines Group announced, in Nov 2022, that it would prioritise the achievement of exits for its relatively mature portfolio companies.
Out of its current 54 portfolio companies, Trendlines has labelled 20 as being at an "advanced stage" -- ie, they have achieved significant developmental milestones and 17 are already producing revenues.
While Trendlines management works in the background on negotiations with potential acquirers, there are positive operating results in 1H2023:
|• Operating, general, and administrative expenses decreased by 11.75% in H1 2023, compared to H1 2022.
• Non-IFRS Portfolio Fair Value*: US$152.8 million, 51.3% greater than IFRS Portfolio Fair Value.
(*For explanation on Non-IFRS values, see announcement on 7 March 2023)
So what are the talks that Trendlines management has been having with potential acquirers of its portfolio companies? Will there be exits this year, or pretty soon?
Chairman Todd Dollinger said:
It's really valuable to understand that we are often in conversations about the sale of portfolio companies and we don't announce that in part because not all of these conversations go the way we might hope. There can be a whole host of reasons for that. These are long complex negotiations that include dealing with many parties -- with the shareholders in the company, with the executives of the company and, of course, one or more potential acquirers. I don't think there's a time when we aren't in conversations about potential exits.
There was an update during the earnings call regarding Trendlines Medical Singapore.
Established in 2017, it is supporting eight Singaporean startups developing advanced medical devices and technologies.
"We actively partner with institutions like the National Healthcare Group and other healthcare institutions to develop early stage medtech concepts with the involvement of physicians to align with clinical needs," said CEO Eric Loh (photo).
The portfolio companies enjoy strong support from government agencies, he said, citing Enterprise Singapore that provides developmental grants and facilitates strong connectivity to local and overseas medtech ecosystems.
He highlighted portfolio company NICE Surgical that is developing a surgical instrument that enables the resection (cutting out of tissue) of diseased colon without any incision.
The company received very positive feedback from industry leaders in the field of colorectal surgery during an International Conference in Canada in April this year. It has also been selected as a finalist from 400 companies internationally at a coveted medtech innovator award.
Trendlines' 1H2023 online presentation covered its financial performance, key portfolio companies' achievements, Q&A with investors, etc.
Catch all that in the video below: