One Futher Reason to add Yolo Leisure & Technology #YOLO to your Watchlist - Vox Markets
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One Futher Reason to add Yolo Leisure & Technology #YOLO to your Watchlist

The content of this blog (or content associated with it) is not intended as investment advice. I own shares in the company featured. Please do your own research.

Yolo Leisure & Technology (YOLO)
Share Price: 0.727p
Market Capitalisation: £3.2m

What Do They Do?
Yolo is an investment company who focus on opportunities in the travel, technology and leisure sectors.

I’ve written about YOLO before, you can read that blog by clicking here.

One Futher Reason to add Yolo Leisure & Technology #YOLO to your Watchlist

Yolo are invested in 5 companies, you can see a summary of them below but I want to focus on Magic Media Works.

On the 5th June Magic has successfully completed a pre-IPO round of funding. Magic has also recently appointed FinnCap to advise company on corporate and funding strategy.

In total Yolo has invested £1,415,000 in Magic bringing its holding in Magic to 41.43%. This values the Magic at £3.415m.

It’s been rumoured, in The Mail’s This Is Money section, that Magic Media will float on the stock market for an estimated valuation of £100m.

I think this is overly optimistic.

I’m going to use £25m as conservative but hopefully more accurate estimate of valuation of Magic Media on listing. If YOLO does not follow its money and allows full dilution its stake goes down to 34%.

This gives YOLO a valuation of £8.5m = 1.92p and this is not including their other investments.

On 26th June 2017 YOLO had an independent valuation of conducted of their investment portfolio. The Company’s Net Asset Value per share equated to at least 1.5p.

Their current share price is 0.725p.

Simon Robinson, Chief Executive Officer of Yolo, commenting on the Magic Media Works IP said, “The closing of this pre-IPO funding round by Magic represents a significant milestone for the company. Our decision to subscribe in this funding round and to convert Yolo’s existing Convertible Loan Notes in the company into a major equity holding, clearly demonstrates the Board’s growing belief that our investment into Magic is now poised to deliver material and measurable near-term returns for Yolo shareholders. I am also pleased to report that YOLO’s other investee companies are also performing well, and shareholders can expect news in this respect shortly.”

I personally know the fundamentals of audioBoom and Gfinity, two of their investments, are improving and if Magic Media Works’ new product, ROXI, does well then we could expect their net asset value to be comfortably above 3p, which is nearly 4 times their current share price.

It’s not unusual for an investment company’s share price be below their net asset value but nowhere near this much and so one would assume, after the Magic Media Work’s IPO, a rerate in YOLO’s share price could, reasonably, be expected.

To add Yolo Leisure & Technology #YOLO to your watchlist click here.

YOLO’s Investments

audioBoom (BOOM)


“Audioboom is a leading global podcasting platform that consolidates the business of on-demand audio, making content accessible, wide-reaching and profitable for podcasters, advertisers and brands.

Yolo originally invested on 24 February 2015 and as at the balance sheet date held 3,500,000 shares at a cost of £275,654. This was increased on 4 April 2017 to 5,340,000 shares of the company’s issued share capital taking the total cost of the investment in Audioboom to £321,914.”

Yolo hold 5,340,000 audioBoom shares at 2.1p = £112,140

Gfinity (GFIN)


“Gfinity is one of the world’s leading eSports companies and a premium eSports operator in the UK, offering a uniquely integrated suite of branded assets that give clients supreme opportunities to reach and engage with eSports fans through both viewing and participation.

Yolo invested into Gfinity at the time of its listing on 23 December 2014. Yolo has acquired 2,143,023 shares in the company at cost of £364,650.”

Yolo hold 2,143,023 Gfinity shares at 21p = £450,034

Magic Media Works


“Magic is a home entertainment technology company, with a mission to connect people together through music and bring joy to the home by building remarkably simple products that anyone, and everyone can use.

On 5 November 2016 the Company completed its investment in Magic Media Works limited by investing £1.4m through convertible loan notes in Magic.”

TVPlayer


“TVPlayer is a licensed TV aggregating broadcast platform that is focussed directly on the customer. Yolo invested on the 4 February 2015 and has a 4.57% shareholding in the company with 11,067 shares at a cost of £372,964.

TVPlayer was founded in 2014 and is the UK’s de facto online TV aggregator. The company demerged from Simplestream Ltd in September 2016 to assist its growth. The company is well positioned with new and large strategic content partners taking an active interest to assist the business in its expansion.

The company has already attracted 3m downloads with 1m monthly active users and is the UK’s only fully licensed online channel aggregator, having signed contracts with all of the commercial PSBs in September 2016. TVPlayer offers 75+ free live channels and the TVPlayer Plus offering a further 29 premium live and on demand channels for a monthly £5.99 (€7).

A+E (a joint venture between Disney and Hearst Media) is an award-winning, global media content company and a minority shareholder of TVPlayer following a £5m cash investment in August 2016. A+E are actively assisting management to accelerate growth in the UK and internationally. Opportunities exist for further strategic partnerships and the company is well positioned to capitalise on these opportunities.

YOLO initially invested into Simplestream in February 2015 and the TVPlayer subsequently demerged in September 2016. Both are private businesses that have not disclosed their valuations to the market, although their combined value had quadrupled by year end 2016 since Yolo’s investment. Both the TVPlayer and Simplestream businesses are well positioned to capitalise on the growth and user opportunities within the UK and International markets.”

Simplestream


“Simplestream is a live & video on demand (VOD) streaming solution broadcast company. Yolo invested on the 4 of February 2015 and has a 6.71% shareholding in the company with 9,943 shares. The total cost of our investment is £539,134.

Simplestream Limited completes a profitable financial year to 31 May 2017 and is forecast to achieve £5m revenues for year ending 31 May 2018.

Simplestream Limited completes a profitable financial year to 31 May 2017 and is forecast to achieve £5m revenues for year ending 31 May 2018.

Simplestream Limited (“Simplestream”) investor summary: Simplestream is a live & video on demand (VOD) streaming solution broadcast company. Yolo invested on the 4 of February 2015 and has a 6.71% shareholding in the company with 9,943 shares. The total cost of our investment is £539,134.”

 

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The content of this blog (or content associated with it) is not intended as investment advice. I own shares in the company featured. Please do your own research.