Allied Minds Announces Half-Yearly Results

Allied Minds (LSE: ALM), an innovative U.S. science and technology development and commercialization company, today announced its half-yearly results for the six months ended 30 June 2015.

"Since becoming a public company one year ago, Allied Minds has made solid strategic progress and has delivered on multiple commitments to shareholders. We have created six new subsidiaries, formed a historic joint venture with Bristol-Myers Squibb, attracted $75.2m in third party investment for subsidiary acceleration, and made significant advancements in a number of our key subsidiaries through strategic collaborations, licenses and co-developments. We have had a strong first half of 2015 and have delivered on the most important elements of our plan for the first year post-IPO. Most importantly, Allied Minds is well positioned for the remainder of this year and beyond.”

– Chris Silva, Chief Executive Officer

Overview

• Named Peter Dolan, the former Chairman and CEO of Bristol-Myers Squibb, as Chairman of the Board of Directors and welcomed Kevin Sharer, the former Chairman and CEO of Amgen, to the Board; Messrs. Dolan and Sharer bring a wealth of experience and expertise to help oversee and guide our growing portfolio of life-science and high-technology companies. In addition, we appointed Richard Davis, an Allied Minds’ Director since 2011, and a Partner and Chief Operating Officer at Pegasus Capital Advisors, to serve as our Senior Independent Director.
• Launched two new projects: (i) entered into a license agreement with Harvard University through Allied-Bristol Life Sciences, to develop novel therapies for fibrotic and autoimmune diseases, and (ii) created the new subsidiary company BridgeSat, to develop an optical connectivity system for Low Earth Orbit satellites.
• Continued strong commercial progress across the subsidiary portfolio, led by:
  • Spin Transfer Technologies entering into a co-development contract with a major semiconductor original equipment manufacturer (OEM);
  • Federated Wireless receiving the necessary regulatory authority to go to market with its proprietary Spectrum Access System, by virtue of the Federal Communications Commission’s (FCC) unanimous decision to approve the formal Rule & Order governing the dynamic sharing of federal spectrum in the 3.5 GHz band; and
  • SciFluor Life Sciences successfully completing a $30.0 million equity financing, and adding Dr. William Koster, the former President and CEO of Neurogen Corp. and 30-year veteran of Bristol-Myers Squibb, as its Chairman of the Board.
• Launched the Allied Minds Fellows Program, an initiative that will enable an elite group of graduate students and post-doctoral researchers from top-tier U.S. research institutions to assist the Company with technology scouting, diligence, market discovery and investment analysis in support of the Company’s corporate and subsidiary company activities.

Period Highlights

• Spin Transfer Technologies executed the first phase of a new, unique partnership with a major electronics company. This joint development agreement, the first phase of an anticipated two phase structure, establishes early stage development cooperation, and anticipates expanded, longer term co-development, manufacturing support, and supply chain commitments. Technology development also remains on track for producing demonstrator chips (DM1) in Q4 2015 that will generate commercially relevant data for evaluation by potential partners and customers.
• SciFluor successfully raised $30.0 million in a Series A preferred stock financing. Further, Dr. William Koster joined as the Chairman of the Board. Dr. Koster previously served as President and Chief Executive Officer of Neurogen Corp., a NASDAQ-listed biotechnology company engaged in neuroscience R&D. He also spent 30 years with Bristol-Myers Squibb Co. in various roles that included Senior Vice President overseeing worldwide drug discovery research and early clinical development.
• Allied-Bristol Life Sciences entered into a license agreement with Harvard University with respect to research and intellectual property developed by Professor Malcolm Whitman, and commenced a project to create novel therapeutics for the treatment of fibrotic and autoimmune diseases.
• Federated Wireless announced its support of the Federal Communications Commission’s (FCC) unanimous decision to approve the formal Rule & Order governing the dynamic sharing of federal spectrum in the 3.5 GHz band, thereby ensuring the necessary regulatory authority for Federated Wireless to go to market with its proprietary Spectrum Access System.
• Allied Minds established BridgeSat, in collaboration with The Aerospace Corporation, Draper Laboratory, Massachusetts Institute of Technology Assistant Professor Dr. Kerri L. Cahoy and the graduate student team in the Space, Telecommunications, Astronomy, and Radiation (STAR) Laboratory, to develop an optical connectivity system that aims to increase the speed, security and efficiency of data transmissions from Low Earth Orbit satellites compared to traditional radio frequency solutions.
• SiEnergy Systems was awarded a grant for $300,000 through the Massachusetts Clean Energy Center’s AmplifyMass Program. The grant is designed to supplement funding provided to recipients of the Advanced Research Projects Agency-Energy (ARPA-E) program, which SiEnergy won last year. The company is being recognised for its efforts to develop a hybrid electrochemical system that performs as both a fuel cell and battery.
• Optio Labs purchased the assets of Maryland-based security company Oculis Labs, and its CEO, Dr. Bill Anderson, joined Optio Labs as Chief Product Officer. Oculis Labs develops products that protect data displayed on a computer and mobile device screens from visual eavesdroppers.
• Biotectix announced that its Amplicoat^TM electro-conductive polymer coating had been licensed by Acutus Medical for use on the their real-time 3D Cardiac Chamber Imaging and Dipole Density Mapping system.
• Recorded Group revenue during the first half 2015 of $1.5 million, down from $2.9 million during the same period last year; the decrease primarily reflects slower than expected sales progress at RF Biocidics.
• Maintained strong balance sheet, with net cash and investments at 30 June 2015 of $237 million (FY14: $262m), enabling Allied Minds to further invest in forming, developing and commercialising potentially disruptive technologies.

Post-period-end Highlights

• Allied-Bristol Life Sciences entered into a license agreement with Yale University with respect to research and intellectual property developed in the laboratory of Dr. David Spiegel. The proprietary platform, and associated lead molecules known as Antibody-Recruiting Molecules (ARMs), provide a novel approach for the treatment of cancer.
• Tinnitus Treatment Solutions (TTS), executed a new, unique partnership with Your Hearing Network. This partnership will dramatically expand the reach of TTS by roughly 1,000 hearing healthcare sites.
• Percipient’s STRONGARM product was selected by R&D Magazine as a finalist for a 2015 R&D 100 Award in the Software/Services category. An R&D 100 Award recognises the 100 most technologically significant products introduced in the past year.
• Optio Labs announced the release of PrivateEye Enterprise 5.0, a major upgrade to its data security and compliance software product that protects computer screens against data leakage and insider threats.
• Whitewood Encryption Systems introduced the Entropy Engine^TM, a cost-effective, quantum-powered random number generator, which is designed for any application that incorporates cryptography or relies on high-quality random data.

HY15 Financial Highlights

• Net cash and investments* at 30 June 2015: $237 million (FY14: $262m).
• Revenue: $1.5 million (HY14: $2.9m).
• Net loss: $39.1 million (HY14: $27.2m), of which $30.4 million attributable to Allied Minds (HY14: $21.9m).

^*includes excess cash in the form of fixed income securities.

A full copy of the Half-Yearly Report is available on our website (www.alliedminds.com) under Investors/Reports and Presentations.

About Allied Minds

Allied Minds is an innovative U.S. science and technology development and commercialization company. Operating since 2006, Allied Minds forms, funds, manages and builds products and businesses based on innovative technologies developed at leading U.S. universities and federal research institutions. Allied Minds serves as a diversified holding company that supports its businesses and product development with capital, central management and shared services. More information about the Boston-based company can be found at www.alliedminds.com.

Allied Minds Forward-Looking Statement

This press release and the Half-Yearly Report contain statements that are or may be forward-looking statements, including statements that relate to the company’s 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 the company’s regulatory filings. These forward-looking statements are based on assumptions regarding the present and future business strategies of the company 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 and Transparency Rules, neither the company nor any other party intends to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

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