Numis reiterates 'buy' at Allied Minds

Shares in Allied Minds gained on Monday as Numis reiterated the stock at ‘buy’ after the company announced a successful $22m (£15.4m) fundraising for its subsidiary Federated Wireless.

The US-based FTSE 250 science and technology developer invested $5m in the fundraising and the rest came from Woodford Investment Management. Allied Minds has increased its stake in Federated Wireless to 73% from 91%, boosting net asset value by $51m.

The group said the proceeds of the funding would enable Federated Wireless to complete its Spectrum Access System (SAS) and Environmental Sensor Capability (ESC) certification, conclude the development and accelerate the commercialisation of its cloud-hosted CINQ platform, as well as conduct field trials in the second half of 2016 with its technology partners.

“Allied Minds last reported a portfolio asset valuation of $488m with its FY14 results and we would expect this to be updated with the FY15 results for developments such as the Precision Biopsy fund raise in October 2015 and today’s news relating, leading to an uplift of $97m, before any other adjustments,” said Numis analyst Sally Taylor. “On this basis the stock is trading at 1.3x net asset value.”

The broker gave the company a target price of 688p.

Shares rose 5.81% to 298.80p at 1251 GMT.