New Venturetec annual press release 2016
New Venturetec: Results for the fiscal year 2015/16 per September 30, 2016
Steinhausen, November 7, 2016. New Venturetec closed the fiscal year 2015/16, ended September 30, 2016, with a loss of USD 60,649,374 or USD 12.09 per share, compared to a gain of USD 15,105,459 or USD 3.00 per share in the fiscal year 2014/15. The net asset value per share decreased from USD 12.94 to USD 0.94 which equals -92.7% during the reporting period; in CHF respectively from CHF 12.59 to CHF 0.91 or -92.8%.
The main reason for the loss was the decrease of the quoted share price of Osiris Therapeutics from USD 18.47 per share to USD 4.96 per share or-73.2% and the decrease of the traded share price of Myriad Genetics from USD 37.48 to USD 20.58 or -45.1%. Further, the New Venturetec had to write-off its investment in Prolexys of USD 500,000 book value in the reporting period. The details on the valuation of the portfolio companies are described in the annual report.
As of September 30, 2016, New Venturetec had two investments which are valued below investment costs. The total value of investments is USD 24,468,373. As of September 30 2016, the largest position is Osiris Therapeutics (NASDAQ:OSIR) with 83.2% of total investments. The net asset value per September 30, 2016 is USD 4,721,747.
Due to the loss of the fiscal year 2015/16 the assets of New Venturetec did not cover one-half of the share capital anymore in accordance with Art 725 para.1 CO. To address the capital loss, Peter Friedli and the Company signed a subordination agreement on a total claim of CHF 19,116,322.
The advisory fees for the fiscal year 2015/16 are USD 193,676. The board remuneration for each of the two outside board member, for the reporting period was CHF 25'000.
The annual report, including financial statements for the reporting period can be downloaded from www.newventuretec.com/investors/reports.aspx. The agenda of the annual shareholders meeting held at 11.45am on December 2, 2016 is available on www.newventuretec.com.
About New Venturetec
New Venturetec is a publicly traded Swiss investment company (SIX: NEV) which holds participations in venture companies in the areas of biotechnology and technology which are domiciled in the USA.
The investment horizon should be 10 years or more. A shareholder is recommended to follow the development with interest and base an investment or disinvestment decision on results of the development of the portfolio companies rather than on the general capital market and the investors’ sentiment. Any investor should only invest in New Venturetec if he can afford the complete loss of the investment without having to change his lifestyle. Significant risk is involved and the timelines may exceed the expectations. In addition, the market of New Venturetec shares is very illiquid. The risks of venture investments are 100%. The total loss of the investment has to be considered as a realistic possibility.
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