VANCOUVER, Sept. 24, 2018 /CNW/ - Rockshield Capital Corp. (CSE:RKS), (US:RKSCF), (FSE:6BC) ("Rockshield" or the "Company") is pleased to provide an update on the Company's investment portfolio.
Over the past several months our core holdings have steadily progressed achieving key developments and milestones resulting in considerable share price appreciation. Our four largest holdings, The Green Organic Dutchman (TGOD), Helius Medical Technologies (HSM), Plus Products (PLUS) and Cognetivity (CGN) along with our $2.1MM cash position account for 87% of our total $14.5M net asset value (as at Sept 21, 2018). The current share price of Rockshield Capital (RKS) represents as 46% discount to our net asset value, representing a misalignment with the underlying value of the holdings.
Our diversified approach to investing across several high growth sectors and backing proven and successful management teams continues to yield positive results. While we make a number of early investments to gain exposure to high growth sectors our measured and disciplined approach enables us to mitigate risk and manage our portfolio during turbulent times. While we were early backers of the nascent and rapidly evolving blockchain industry through a number of small investments, we limited our collective exposure to only ~$500K of capital and were able to successfully exit our positions and limit our losses. We maintain Hyperblock and Neptune Dashnodes as our only holdings in the space for the time being. We continue to believe in the long-term potential of the sector and will monitor our current holdings and future investment opportunities as the industry continues to develop.
Our focus at Rockshield Capital is to provide our shareholders an opportunity to participate in early stage venture investing through a diversified approach, allowing them to get generate superior investment returns while diversifying their risk. Beyond generating investment returns within our portfolio we will continue to look for ways to generate maximum returns for our shareholders, such as considering the Company buying back its stock through a normal course issuer bid (NCIB), as well a looking for attractive investment opportunities for our newly created spincos which we expect to update investors on shortly following several existing due diligence discussions.
Below is an update on some of the key milestones and achievements of our largest holdings.
The Green Organic Dutchman (TGOD)
The Green Organic Dutchman Holdings Ltd. has been extremely active over the past few months and has announced a number of strategic developments both domestically and internationally.
Most recently TGOD has launched its premium, certified organic cannabis brand.
It has also signed a definitive agreement to acquire 100 per cent of the issued and outstanding shares of privately held HemPoland a leading European manufacturer and marketer of premium organic CBD oils. The deal provides TGOD access to a premium Cannabigold brand, state-of-the-art hemp oil extraction technologies, and provides a strategic pathway into the European market for The Green Organic Dutchman's medical and recreational products and licensing deals.
Corporately the company has announced and approved a spinoff transaction by way of plan of arrangement, pursuant to which the company will distribute a dividend consisting of a warrant in a new corporation (TGOD Acquisitions) to shareholders. TGOD Acquisitions will be engaged in the acquisition and development of worldwide opportunities.
Rockshield was an early backer of TGOD and currently owns 500,000 shares and 50,000 warrants representing our largest holding of over $4.39MM
Plus Products (PLUS)
On September 19th Plus Products went live on their highly anticipated US$15,000,000 initial public offering (IPO) priced @ C$3.25. This is an incredible milestone for any company and we are very pleased with the progress the team at Plus has made both operationally and in the capital markets. The company has successfully completed multiple rounds of financing that has attracted retail and large institutional buyers, including most recently a US$10MM placement that resulted in a strategic investor, SH9 Holding LLC Inc, acquiring a 17.79% of the company.
Operationally the company has steadily increased revenues and gained market share, with currently the number 1 and number 5 selling gummies in California and the leading CBD only gummies. Plus continues to expand its production capacity and is building one of the largest cannabis edibles manufacturing facilities in the US. Plus' disciplined and focused approached on branded edibles in the largest US market appears to be a successful formula and we look forward to a successful IPO.
Rockshield was an early private investor leading the Series A financing US$0.90 financing and currently maintains a 600,000 share position worth $1.95MM at IPO pricing.
Helius Medical Technologies (HMS)
Helius announced the submission of their request for de novo classification and 501(k) clearance of the portable neuromodulation stimulator (PoNS) device for the treatment of chronic balance deficit due to mild to moderate traumatic brain injury, bringing Helius one step closer to making their novel PoNS treatment available for U.S. patients who suffer from the potentially disabling effects of traumatic brain injury (TBI) related chronic balance disorder.
The company's request for de novo classification and 510(k) clearance is supported by clinical data from two double-blind, randomized, controlled trials demonstrating the PoNS device's safety and efficacy, with combined enrolment of 163 patients. It is also informed by feedback provided by FDA during presubmission meetings that focused on the company's trial designs, clinical data and design verification testing.
This is a big achievement for the company and lays the groundwork for the commercial launch of our PoNS treatment following FDA clearance and pursuing regulatory clearances in Canada, Australia, Europe.
Rockshield has been a long term support of Helius Medical Technologies and currently holds over a $3.4 million dollar position.
Cognetivity Neurosciences Ltd (CGN)
Cognetivity Neurosciences Ltd recently announced two major milestones towards the company's commercialization of its proprietary technology.
Firstly, the company announced that it has started its key clinical validation trial in relation to the detection of cognitive performance in Alzheimer's and pre-Alzheimer's patients and will take place in London, England.
This trial is part of the established process toward gaining clinical regulatory approval for the company's proprietary integrated cognitive assessment (ICA) platform, which will allow the ICA to be used in clinical environments. The trial is being conducted at the South London and Maudsley (SLaM) NHS Foundation Trust, which has the largest mental health research and development portfolio in the United Kingdom, and in conjunction with the Institute of Psychiatry, Psychology & Neuroscience at King's College London.
Most recently the company announced that it has secured two key patents to service their two largest future markets of the United States and Europe. Both the patents have been granted towards Cognetivity's proprietary integrated cognitive assessment (ICA), an artificial intelligence (AI) system to assess mental health disorders in humans. The system's initial focus is on early diagnosis of dementia, in particular Alzheimer's disease, by detection of the early stages of loss of cognitive performance associated with the disease.
Rockshield was a seed investor in Cognetivity and maintains a 2,000,000 share position at $0.25 worth $820K today.
ROCKSHIELD CAPITAL CORP.
Rockshield is an actively managed venture capital fund and merchant bank, focused on small cap high growth companies. Rockshield's management team has been seed financing and investing in early stage venture companies for over the past 20 years and performs extensive due diligence as it looks to build a portfolio of opportunistic investments with the aim of generating superior long-term returns while managing risks. Leveraging the vast professional network and experience of the management team, Rockshield has early access to private and public deals and reviews hundreds of deals a year selecting only those with the best potential returns.
For further information regarding Rockshield, see Rockshield's disclosure documents on SEDAR at www.sedar.com.
The Canadian Securities Exchange has neither approved nor disapproved the information contained herein and does not accept responsibility for the adequacy or accuracy of this news release.
SOURCE Rockshield Capital Corp.
For further information: Contact Information: Rockshield Capital Corp., Dan Sorger, Director, [email protected]