Flerie’s share redemption scheme represents a distinctive opportunity and its rationale and detailed conditions are described below and in the Articles of Association.
In a nutshell:
- Max 5% of the total number of shares may be redeemed in any year
- Shareholders have the right to once a year redeem shares at NAV/share if desired, and some shareholders have agreed not to utilise this right.
Underpinning the rationale for the redemption scheme is the fact that Flerie is an evergreen life science investor with a long-term, active value creation philosophy, and a conviction that employing a realistic and prudent philosophy in all our affairs will lead to a healthy, long-term return for our shareholders.
The two main reasons for the redemption scheme are to provide a liquidity option and to support the market in their valuation of Flerie’s shares:
- Liquidity option: Some investors may need to realise medium-term liquidity at times, even if they have bought into Flerie’s long-term and active company building strategy. A redemption scheme enshrined in the Articles of Association, as is the case for Flerie, is preferable over a buy-back scheme determined entirely by the board of directors, because it provides a guaranteed, recurring liquidity option for shareholders.
- Valuation alignment: Flerie is an active investor helping to build portfolio companies using our specialist experience and network. To support the market in understanding the added value that Flerie provides beyond the money invested, the redemption scheme should have the effect to align the share price and the reported NAV/share.
Flerie’s mission is to actively build pioneering life science companies which can have a significant impact on health and well-being in society. Whilst doing this the team will always act responsibly and this includes prudently valuing scientific innovations with the aim that Flerie’s share price as closely as possible reflects the underlying assets in the portfolio.
The detailed conditions of Flerie’s share redemption scheme are stated in the document below.