Adamas Finance Asia

http://adamasfinance.com/home TICKER: ADAM     EXCHANGE: AIM

Adamas Finance Asia aims to be the leading London-quoted pan-Asian focused diversified SME investment opportunity. It targets above average income and capital growth, with a stated objective to provide shareholders with unique access to a diversified portfolio with access to high-growth Asian economies.

LATEST REPORTS

 
Adamas Finance Asia at the Equity Development Investor Forum, January 2019
Published: Feb 01 2019

Suresh Withana, Managing Partner of Harmony Capital their investment manager, updated us on the unique offering that ADAM affords to AIM investors, progress of their investments and the ambitions of the company moving forward.
NB  for any investor who missed Suresh's presentation on ADAM's unique AIM proposition there is an invitation to cocktails with ADAM at the Sofitel SW1, next Thurs 7th of February at 18.45. 
Register here to gain admittance  : CLICK HERE
 
New investment in the medical device sector
Published: Jan 25 2019

Adamas Finance Asia aims to be the leading London-quoted pan-Asian focused diversified SME investment holding vehicle. It targets above average income and capital growth, with a stated objective to provide shareholders with unique access to a diversified portfolio with access to high-growth Asian economies.
It has announced a proposed new US$5m investment in a medical devices company called PharmaJet Inc (PharmaJet). This follows a US$4m investment in a residential project in a popular Japanese ski resort in December 2018, which provided it with initial exposure to Asia’s winter tourism industry. 
PharmaJet has developed innovative, needle-free injectors, which have US Food and Drug Administration marketing clearance, European Union CE Mark and World Health Organisation Personal Quality and Safety certification for the suitability of delivering medication and vaccines. ADAM was attracted by the underlying growth potential for the medical devices sector within Asia and the significant demand for needle-free injectors. 
PharmaJet is seeking to raise between US$12M and US$20M for business expansion, particularly within Asia, and to move it towards a potential IPO. As the lead investor, ADAM intends to subscribe up to US$5M in a convertible bond and has agreed to a non-binding term sheet, subject to final legal documentation. The convertible bond has a four-year maturity and a 10% pa coupon (6% cash, 4% Payment-in-Kind). It will be drawn in tranches, with the first subject to satisfaction of certain conditions (eg completion of legal due diligence and execution of legally binding documentation). 
This investment reflects the investment mandate of ADAM to seek an immediate, attractive income stream to underpin future distributions, and medium term capital growth. It is an example of ADAM’s ability to access niche investment opportunities not normally available to European investors. Detailed due diligence was carried out by Harmony Capital.
We are encouraged by two recent investments in rapid succession and expect the significant (93%) gap from the share price to reported NAV to shrink on further activity. 
NB Suresh Withana, Managing Partner of Harmony Capital Investors, is presenting to investors at the ED Investor Forum next Wed, 30th Jan at 17.30pm. Registration is free but required, by signing up here: 
 
announces two investment deals in quick succession
Published: Jan 14 2019

Suresh Withana explains why investment manager Harmony Capital has selected PharmaJet and Infinity Capital Group to enter the portfolio of Adamas (LON:ADAMA) in recent weeks. 

NBSuresh will also be presenting at our Private Investor Forum at Buchanan Communications on the evening of Wednesday the 30th of January 2019

Register for the Event here - CLICK HERE 

Venue: 107 Cheapside, London EC2V6DN 
Time: 5pm for a prompt 5:30 start
 
Initial investment in Asian winter tourism
Published: Dec 13 2018

Adamas Finance Asia (“ADAM”) aims to be the leading London-quoted pan-Asian focused diversified SME investment company. It targets above average income and capital growth, with a stated objective to provide shareholders with unique access to a diversified portfolio sourced from high-growth Asian economies.
Their latest investment fits its investment mandate by providing an immediate, attractive income stream, which reaffirms the potential for future dividends, and capital growth over the medium term. Furthermore, the attractive terms agreed confirm the management’s view regarding the acute shortage of traditional sources of finance to many borrowers in its target Asian markets. 
ADAM has agreed to finance the development of a premium residential project in Hirafu Village, located in the Niseko Ski Resort in Hokkaido, Japan, one of the world’s most popular winter travel destinations. It will provide the borrower, Infinity Capital Group Limited (ICG) with a US$4m senior secured loan note, fully secured by other ICG assets in Niseko. The coupon is 17.5% pa, payable in cash with the first tranche drawn imminently according to the Company, and ADAM receives warrants. 
This transaction is a timely reminder of the Investment Manager’s ability to source and execute attractive deals, and its plans to build cash flows to support future dividend payments. 

ADAM shares are currently 48% below end September 2018 (unaudited) NAV/share. We believe that gap discounts any perceived risks and offers attractive potential upside as Harmony Capital further builds ADAM’s portfolio with Asian SMEs.
 
Interview with Investment Manager on unique Asian SME offering
Published: Oct 25 2018

Founder of Investment Manager Harmony capital, Suresh Withana, explains the attractions of the Adamas Finance Asia mandate to gain exposure to Asian SME growth.

A full research note about ADAM has just been published by Equity Development here ... https://www.equitydevelopment.co.uk/edreader/?d=%3D%3DQN5QjM 
 
Unique access to Asian SME growth
Published: Oct 24 2018

Adamas Finance Asia (ADAM) aims to be the leading London-quoted pan-Asian focused diversified SME investment holding vehicle. It targets above average income and capital growth, with a stated objective to provide shareholders with unique access to a diversified portfolio with access to high-growth Asian economies.
Over the last 16 months, its new Investment Manager, Harmony Capital Investors Limited (“Harmony Capital”), has begun to reposition ADAM to address its past underperformance. It has restructured and stabilised its legacy portfolio and built a pipeline of new potential investments which fit with ADAM’s revised investment policy. 
We set out the investment case in this note and how ADAM plans to leverage its competitive positioning to build a portfolio that supports progressive income distributions and capital gains. It has sourced predominantly private opportunities and, subject to securing access to the necessary capital, has a pipeline of income generating assets which fit its new investment strategy. 
Although ADAM is sector agnostic, that pipeline includes potential investments in Internet & Technology, Healthcare & Life Sciences, Property, Industrials, Energy and Resources and Education across Asia. A common theme is likely to be a focus on SME ‘special situations’ which seek growth capital but are unsuitable or too complex for most traditional financing methods available in their local markets.
The recent interims reflected the ongoing transition, disposals of non-core, legacy assets and reinvestment in new income generating assets. ADAM reported a 1.5% increase in consolidated NAV to US$95m (FY17: US$93.6m) and concluded its first new investment since Harmony Capital’s appointment, a US$2m stake in DocDoc Pte. via a convertible bond. 
ADAM’s legacy portfolio has been stabilised and is held at fair value. The shares are currently c.50% below 116c NAV/share at end Sept (unaudited). We believe that discounts any perceived risks and offers attractive potential upside as the investment manager builds growth momentum and credibility over the next 12-18 months.

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