Seraphim Space Investment Trust plc (LSE:SSIT) has confirmed the completion of the sale of portfolio company ALL.SPACE after York Space Systems finalised its acquisition of the business. As part of the transaction, Seraphim received a combination of cash and York shares with an initial value of approximately $46.3 million. Subject to the release of escrow funds, the total consideration could increase to as much as $54.4 million. The trust had invested a total of £31.3 million in ALL.SPACE.
The overall value of the transaction is currently below the previously reported fair value of Seraphim’s £57.4 million holding because York’s share price has traded below the agreed issue price used in the deal. However, the trust noted that there remains meaningful upside potential should York’s share price recover before the lock-up restrictions on the newly issued shares expire. Management also highlighted the strategic rationale behind combining York’s satellite capabilities with ALL.SPACE’s communications technology, positioning the enlarged business to benefit from growing demand for resilient defence and secure communications solutions.
Despite the successful exit, Seraphim Space’s outlook continues to be affected by persistently negative operating cash flow and earnings that are heavily influenced by changes in portfolio valuations. These challenges are balanced by the company’s debt-free balance sheet, which provides financial flexibility. Technical indicators remain relatively weak, with the shares trading below key short-term moving averages, while a low price-to-earnings ratio offers only limited valuation support.
More about Seraphim Space Investment Trust
Seraphim Space Investment Trust plc is a London-listed investment company specialising in SpaceTech businesses. The trust invests in companies developing satellite technologies, communications systems and other space-related infrastructure, with a focus on high-growth opportunities across defence, communications and global connectivity markets. Its portfolio is designed to provide investors with exposure to emerging technologies that support the expanding commercial space economy.
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