TIDMALM
RNS Number : 9157P
Allied Minds PLC
23 November 2016
23 NOVEMBER 2016
Allied Minds plc
Allied Minds' Subsidiary HawkEye 360 Raises $11 Million in
Series A Financing
Financing round led by Razor's Edge Ventures and includes
investment from Allied Minds and a defence market leader; John
Serafini appointed as full-time Chief Executive Officer
Boston, MA (23 November 2016) - Allied Minds (LSE: ALM), a
diversified holding company focused on venture creation within the
life science and technology sectors, today announces that its
subsidiary, HawkEye 360, Inc. (HawkEye 360 or the company), a
developer of a space-based radio frequency (RF) mapping and
analytics system, has raised $11.0 million in new equity
investments in a Series A preferred financing led by Razor's Edge
Ventures, with additional participation by Allied Minds and a
defence market leader. HawkEye 360 also intends to issue up to an
additional $2.75 million in Series A preferred shares to new and
existing shareholders within 60 days, resulting in a total expected
financing of up to $13.75 million.
The funds will be used to complete the development and
manufacturing of the HawkEye 360 Pathfinder Cluster of three small
satellites, which is scheduled for launch and testing in late 2017,
as well as grow the company's engineering and business development
teams.
Once the company's Pathfinder Cluster is launched, the
management team of the company believe that the envisioned
commercial constellation will be positioned to be the world's first
privately-funded constellation of small satellites flown in
formation that will be capable of collecting data and generating
reports on geolocated wireless signals. By taking RF data and
turning it into actionable information, HawkEye 360 will be able to
offer commercial enterprises and governmental entities, data
analytics products that can help them make critical decisions, save
lives, and better track assets.
HawkEye 360's constellation of small satellites, which will be
flown autonomously in formation 600 kilometers from the Earth's
surface, aims to enable commercial applications such as allowing
governmental entities and corporate customers to closely monitor
transportation networks across air, land and sea to ensure normal
and safe activity. For government regulators, telecommunications
companies and satellite broadcasters, HawkEye 360's system is being
designed with the ability to monitor RF spectrum usage to help
identify areas of interference, better understand spectrum
deployment, and avoid negative impact to operations. The system
could also help to detect and locate activated emergency beacons to
improve response times in life-threatening situations.
"Since HawkEye 360 was formed in September 2015, the company has
been making strides towards bringing its capabilities to market,"
said Chris Silva, CEO of Allied Minds. "We are confident that the
ability to visualise information in RF signals and provide it
globally will drive the next wave of growth in the commercial Earth
observation market. This successful financing validates HawkEye
360's business model and will enable it to accelerate its path to
commercialisation. It is also a strong example of how the Allied
Minds model is evolving, as we begin to increase the proportion of
funding in our subsidiaries from syndicates of sophisticated
third-party investors."
In conjunction with the Series A financing, HawkEye 360 also
announces the appointment of John Serafini as full-time Chief
Executive Officer. Serafini previously served as a Senior Vice
President at Allied Minds where he led the formation of and
investment into HawkEye 360, as well as other Allied Minds
companies such as BridgeSat, Federated Wireless, Optio Labs,
Whitewood Encryption and Percipient Networks. Serafini is joining
HawkEye 360 to enable him to work more closely with the HawkEye 360
team and its strategic partners to further accelerate its
commercialisation and launch.
"The successful completion of this financing round is a
testament to HawkEye 360's innovative and forward-looking team and
syndicate of investors, who recognise the opportunities in the
fast-growing LEO satellite and related big data markets," said
Serafini. "I am excited to join this visionary group full time, and
be part of what I believe will be a new era in space-based
technologies and capabilities."
- Ends-
For more information, please contact:
Allied Minds plc +1 617 419 1800
------------------------------ -----------------------------
Chris Silva, Chief Executive www.alliedminds.com
Officer
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PR - Citigate Dewe Rogerson +44 20 7638 9571
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Rob Newman/ Shabnam Bashir alliedminds@citigatedr.co.uk
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Media - fama PR +1 617 986 5009
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Ted Weismann alliedminds@famapr.com
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Notes to Editors
Further information on fundraising
Prior to this fundraising, Allied Minds' last reported ownership
adjusted value(1) in HawkEye 360 was $3.3 million. As a result of
this transaction, pursuant to which Allied Minds contributed
approximately $4.0 million to HawkEye 360, the total valuation of
HawkEye 360 increased from $15.0 million to $26.0 million
(including new invested capital), and the ownership adjusted value
of Allied Minds' holding in HawkEye 360 increased by $11.3 million
to $14.6 million for 56.2% of the subsidiary. Assuming the
completion of the total expected financing of up to $13.75 million,
the total valuation of HawkEye 360 shall increase from $15.0
million to $28.75 million (including total new invested capital),
and the ownership adjusted value of Allied Minds' holding in
HawkEye 360 shall increase by $11.1 million to $14.4 million for
50.1% of the subsidiary.
___
(1) Ownership adjusted value represents Allied Minds' interest
in the equity value of HawkEye 360 = (Business Enterprise Value -
Long Term Debt + Cash) x Allied Minds percentage ownership.
About HawkEye 360
HawkEye 360 is developing a constellation of small satellites in
low Earth orbit (LEO) to generate reports on wireless signals that
can be used to track and monitor global transportation networks,
assist with emergencies, as well as other data analytics services.
The company seeks to provide highly accurate maritime situational
awareness, collecting information about vessels to create a wealth
of current and historical data useful for commercial planning and
monitoring, as well as emergency response. Similar data will be
available for airborne and land-based transportation and logistics
industries. More information about the company can be found at
www.he360.com.
About Allied Minds
Allied Minds is a diversified holding company focused on venture
creation within the life science and technology sectors. With
extensive access to hundreds of university and federal labs across
the U.S., Allied Minds forms, funds, and operates a portfolio of
companies to generate long-term value for its investors and
stakeholders. Based in Boston, with nationwide presence in Los
Angeles and New York, Allied Minds supports its businesses with
capital, central management, and shared services. For more
information, please visit www.alliedminds.com.
Allied Minds Forward-Looking Statement
This press release contains statements that are or may be
forward-looking statements, including statements that relate to
Allied Minds' future prospects, developments and strategies. The
forward-looking statements are based on current expectations and
are subject to known and unknown risks and uncertainties that could
cause actual results, performance and achievements to differ
materially from current expectations, including, but not limited
to, those risks and uncertainties described in the risk factors
included in Allied Minds' regulatory filings. These forward-looking
statements are based on assumptions regarding the present and
future business strategies of Allied Minds and the environment in
which it will operate in the future. Each forward-looking statement
speaks only as at the date of this press release. Except as
required by law, regulatory requirement, the Listing Rules and the
Disclosure Guidance and Transparency Rules, neither Allied Minds
nor any other party intends to update or revise these
forward-looking statements, whether as a result of new information,
future events or otherwise.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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