TOUCH VENTURES LIMITED — Net Asset Value 2024

Jul 11, 2024

12 July 2024

Touch Ventures Limited (ASX: TVL)

Net Tangible Asset Backing Position: 30 June 2024

	Current Month	Prior Month
Net Tangible Asset Backing	A$84.4m	A$109.7m
Net Tangible Asset Backing per share1	$0.118	$0.153

Management Commentary

Net Tangible Asset Breakdown

At 30 June 2024, Touch Ventures Limited ( Touch Ventures or the Company ) had $57.6m[2] of cash available (8.2c per share), making up ~68% of the net asset value of $84.4m (11.8c per share).[34]

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1. NTA figures are unaudited and no adjustments have been made for future exercises of options or performance rights, future tax liabilities/benefits or end of period accounting adjustments.

2. Cash available includes $50.2 million of Term Deposits with maturity dates no longer than 12 months.

3. Closing ASX share price as at 30 June 2024.

4. Cash and other includes cash, term deposits and other working capital items.

Sendle

In early July 2024, Sendle raised further capital in its equity financing round and expects to complete a final closing soon. The raise is intended to support Sendle’s balance sheet, topline growth in the US market and its plan for achieving cash flow break-even. However, Touch Ventures believes that the cash runway, unit economics and execution risks remain a key focus and concern for the company, and currently do not intend to participate in this financing round.

Sendle is raising up to US$15m in total, at a pre-money equity valuation of approximately US$60m. The financing round is in the form of preferred equity, which ranks ahead of existing shares including Touch Ventures’ shareholding (which converted to common equity as part of this round).

Given the terms and size of this financing round (incorporating the impact of liquidity preference rights on the common equity in a liquidity event), and Touch Ventures’ current outlook for Sendle, Touch Ventures has written down its investment in Sendle to US$1.2m / A$1.8m as reflected in the June 2024 NTA position. The write down reflects Touch Ventures’ view on its common equity position (which ranks behind the preferred equity).

Postpay

Since the start of 2024 Postpay has been actively looking to diversify its offering through developing a new bank-partnered BNPL product in the UAE. Whilst significant progress has been made in its product development, the bank partnership launch has been delayed and is yet to go-live.

Concurrently Postpay has been actively looking to raise capital to extend its cash runway and explore other strategic partnership / M&A opportunities. Postpay has faced very difficult capital market conditions in the UAE and there is no certainty that Postpay can raise further capital in the near term. Postpay has significantly scaled back its team and business to help extend its runway, whilst the capital raising efforts are ongoing with potential investors.

Having carefully considered Postpay’s progress and the potential for generating returns, Touch Ventures has decided that it will not provide additional investment to Postpay at this stage.

Given the delayed new product launch, difficult market conditions, and Touch Ventures’ current outlook for Postpay, Touch Ventures has written down its investment in Postpay to nil, as reflected in the June 2024 NTA position.

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Movement in June Net Tangible Asset Backing (NTA)

Other movements in the NTA per share predominately relates to operating expenses and unrealised foreign currency adjustments of investments denominated in foreign currencies.

The NTA and portfolio valuations remain subject to the FY24 half-year review.

Cash Position

Given the Company’s strong cash position, the Board and management are continuing to actively assess potential investment opportunities and will keep shareholders informed of any developments.

Authorised for release by the Touch Ventures Board

About Touch Ventures

Touch Ventures Limited ( Touch Ventures ) is an ASX-listed investment holding company. We provide growth capital to high growth, scalable businesses.

Touch Ventures is an internally managed vehicle and has broad flexibility as to how it deploys capital. Touch Ventures' investment strategy is to deploy capital towards high growth, scalable investment opportunities in post revenue and late stage companies. We invest across a diverse range of sectors and industries including retail innovation, e-commerce enablement, finance/fintech, consumer, B2B software and data.

Touch Ventures listed on the ASX on 29 September 2021.

Contact details

For further information, please visit our investor website https://investors.touchventures.com or contact Investor Relations at investors@touchventures.com

Important Notice

Touch Ventures Limited ACN 612 559 958 (ASX: TVL) has prepared the information in this announcement. This announcement has been prepared for the purposes of providing general information only. It does not constitute an offer, invitation, solicitation or recommendation regarding the purchase or sale of any securities in TVL, nor does it constitute a financial product or investment advice, nor take into account your investment, objectives, taxation situation, or financial situation or needs. Any investor must not act based on any matter contained in this announcement in making an investment decision but must make its own assessment of TVL and conduct its own investigations and analysis. Past performance is not a reliable indicator of future performance.

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Portfolio Summary

Company	Overview	Carrying Value5	NTA per share($)	% of NAV
	Sendle is an Australian & U.S.-based virtual parcel courier platform targeting SMB eCommerce merchants.	US$1.2m / A$1.8m	0.003	2.1%
	Postpay is a UAE based BNPL business offering 'Pay in 3' instalment plans to online shoppers with no upfront interest or fees.	Nil	Nil	Nil
	Refundid is an instant returns platform for shoppers providing refunds to consumers before their items are returned to the merchants.	A$5.9m	0.008	7.0%
	Preezie is an Australian eCommerce technology company that provides an online guided selling customer engagement platform.	A$4.5m	0.006	5.3%
	Ordermentum is a digital ordering and payments platform for the wholesale food and beverage industry.	A$3.0m	0.004	3.6%
Early Stage Portfolio	Early-stage investments limited to 5% of the Touch Ventures portfolio.	A$4.5m	0.006	5.4%
Strategic Investments	Investments that strengthens Touch Ventures local and global network.	A$5.1m	0.007	6.0%
Total Portfolio Value		A$24.8m	0.034	29.4%
Cash and other6		A$59.5m	0.084	70.6%
Total Net Asset Value / NTA per share7		A$84.4m	0.118	100.0%

1. Current valuation has been translated using the prevailing foreign exchange rates at month end.

2. Cash and other includes cash, term deposits and other working capital items.

3. Totals may not reconcile due to rounding.

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