Partial exit for Deepbridge Technology Growth EIS
Archived article: please remember tax and investment rules and circumstances can change over time. This article reflects our views at the time of publication.
Deepbridge, the tax-efficient investment manager, has announced a partial exit in one of its investee companies, Sky Medical Technology Limited.
Those who invested in the Deepbridge Technology Growth EIS three+ years ago were offered the opportunity to sell their shares in Sky Medical at a value of £1.85 per share. This equates to a return of between 2.05 times and 4.86 times their initial investment, excluding tax reliefs and fees, depending on when they invested.
Ian Warwick, Managing Partner at Deepbridge, commented: “The offer and the valuation validate our belief in Sky Medical Technology. The fact that a majority of our investors opted to remain invested shows they too believe in this investee company and the continuing potential it offers.”
What does Sky Medical Technology do?
Sky Medical Technology is a highly innovative UK-based medical devices company. It has developed a ground-breaking neuromuscular electrostimulation technology platform, On-Pulse®, which has been proven to dramatically improve blood flow (both volume and velocity) and elevate oxygen levels in the blood. The technology was proven through clinical studies and received regulatory approval for sales in the EU, United States, Canada and Australia.
Sky Medical Technology has developed two devices, geko™ and firefly™, that use the trademarked technology.
geko™ is used to prevent and treat deep vein thrombosis (DVT) – the consequences of which kill more people than AIDS, breast cancer and road accidents combined – and for patients recovering from surgery. Small electrical impulses gently stimulate the common peroneal nerve behind the knee, which in turn activates the calf and foot muscle pumps of the lower leg that return blood towards the heart. In this way, neuromuscular stimulation in the lower limb emulates the process normally achieved by walking (up to 60%) but without the patient having to move or exert energy and without discomfort. A simple, self-adhesive device that is applied to the back of each knee, the disposable, one-size-fits-all geko™ device is designed to avoid the need for more complex procedures.firefly™ applies the same technology to an entirely different purpose: to help athletes recover. It’s currently used by the likes of Team GB, British Cycling, AC Milan, Chelsea and the USA Olympic team.
Which company could be the next Sky Medical Technology?
Sky Medical Technology epitomises the type of company Deepbridge looks to invest in:
- businesses that are already in the process of commercialising their product or service
- businesses that have identified their market and established revenue streams, thereby showing market demand
- businesses that own either intellectual property or a patented product, providing some downside protection
Please note: EIS investments are higher risk and not suitable for everyone. Past performance is not a guide to the future.
The Deepbridge Technology Growth EIS is evergreen, so is continually seeking investors’ funds.
Unlike many growth portfolios, if you invest today, you typically know in which companies your money will be invested.
The ability to make profitable realisation is the acid test for growth EIS. This partial exit could offer investors some reassurance about Deepbridge's ability to select companies with potential, although the success of Sky Medical may not necessarily replicate across the portfolio.
Wealth Club aims to make it easier for experienced investors to find information on – and apply for – tax-efficient investments. You should base your investment decision on the provider's documents and ensure you have read and fully understand them before investing. This review is a marketing communication. It is not advice or a personal or research recommendation to buy the investment mentioned. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination.
Deepbridge Technology Growth EIS
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