The points made above are validated by Lanstead’s track-record. Since the fund was established in Australia, the last nine investments across its global operations have a volume weighted average gain of 362% to 31 July.
Six of the seven ASXlisted investments are above Lanstead’s entry price. Four of the seven investments are in the money which, if maintained during the investment term, will receive additional money than initially committed with no additional shares issued. And so far, two of the seven companies have received follow on investments.
To us, this highlights that an investment through the Lanstead model can, one, create a more certain environment for management to grow value, two, prove beneficial for companies poised to grow as the upside is shared through additional funding and, three, Lanstead regularly provides ongoing capital to companies that have delivered on their objectives.
AFC Energy Ltd (AIM: AFC) is an AIM-listed company that develops alkaline fuel cells systems using hydrogen to produce clean electricity. The company’s objective is to provide clean electricity to meet increasing global demand. AFC Energy is based in the UK but operates globally.
Lanstead invested GBP2.2M into AFC Energy in October 2014 and has remained a significant investor ever since. AFC Energy’s share price appreciation far surpassed the set benchmark price, which has given the company access to significant additional funding from Lanstead.
Importantly, Lanstead did not receive any additional shares for the extra funding. This emphasises how Lanstead’s investment model is designed to align the interests of both parties and ensure that companies are rewarded for delivering on business objectives and for creating value.
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