When you say "Through" I believe you are referring to TEK making follow on investments into its portfolio companies (such as LUCY). There is absolutely no precedent for TEK to make investments into its **listed** holdings. It has consistently made investments into its **pre-IPO holdings** and the reason that its holdings get listed is that they then self fund from then on.
As BELL has had to do. As LUCY has had to do (LUCY has had two offerings on 22/06/23 and 29/04/24 neither of which involved TEK)
The focus of TEK and its funding has consistently been on ReVive, Guident and, until its listing earlier this year SALT. Soon it will be focused on growing its new AI holding. That is TEK's strategy which we will clearly see, I believe, in the 2023 Annual Report which is due in the next week or so.
So, no, I don't agree with your concern. It would involve a significant change in strategy and there is no sign of that.
Thanks for your reply. While i agree that TEK has previously not financed businesses which have already gone public, allowing them to do share placements themselves, i think it is also true that we haven't been in a position where one of the start up businesses have faced collapse. TEK have never articulated how they would handle this type of situation and Cliff has gone AWOL. Cliff putt his son in charge of LUCY (which i find unethical) and i am concerned that he will take money from TEKs successful businesses to keep it going. The whole Gross family have used TEK as their own personal cash cow imo.
I do hope you are right and they won't bail out LUCY. I think this is a significant reason for the misalignment with the NAV. I see this as a major test for TEK. If they do bail out LUCY the market won't like it. Everyone would be much happier if we could stop worrying on LUCY...
But the concern is that it will be a liability for TEK if they throw more money at it.
Hello Chris
When you say "Through" I believe you are referring to TEK making follow on investments into its portfolio companies (such as LUCY). There is absolutely no precedent for TEK to make investments into its **listed** holdings. It has consistently made investments into its **pre-IPO holdings** and the reason that its holdings get listed is that they then self fund from then on.
As BELL has had to do. As LUCY has had to do (LUCY has had two offerings on 22/06/23 and 29/04/24 neither of which involved TEK)
The focus of TEK and its funding has consistently been on ReVive, Guident and, until its listing earlier this year SALT. Soon it will be focused on growing its new AI holding. That is TEK's strategy which we will clearly see, I believe, in the 2023 Annual Report which is due in the next week or so.
So, no, I don't agree with your concern. It would involve a significant change in strategy and there is no sign of that.
Thanks for your reply. While i agree that TEK has previously not financed businesses which have already gone public, allowing them to do share placements themselves, i think it is also true that we haven't been in a position where one of the start up businesses have faced collapse. TEK have never articulated how they would handle this type of situation and Cliff has gone AWOL. Cliff putt his son in charge of LUCY (which i find unethical) and i am concerned that he will take money from TEKs successful businesses to keep it going. The whole Gross family have used TEK as their own personal cash cow imo.
I do hope you are right and they won't bail out LUCY. I think this is a significant reason for the misalignment with the NAV. I see this as a major test for TEK. If they do bail out LUCY the market won't like it. Everyone would be much happier if we could stop worrying on LUCY...