Quarterly Activities & Appendix 4C
Chapmans is an ASX-listed diversified investment company engaged in special situation investments across a diverse range of industry sectors. It seeks to be an active strategic investor in high growth areas of the market. The Company's investment philosophy is based on a unique mix of high conviction and special situation features, characterised by advisory and equity investments structured around specific events and assets for both public and large private corporates.
- Highly active quarter for core investments: strong progress achieved by breakthrough cleantech business Syn Dynamics Australia and digital media business 20FOUR
- New strategic investment in emerging medicinal cannabis sector: Chapmans invested A$631,313 for a 50% equity holding in Australian medicinal cannabis holding and investment company, MJ Life Sciences Pty Ltd
- Investment portfolio rationalised: Divestment of interests in Digital4ge Pty Ltd and Visual Amplifiers Ltd
- Capital raise to support further investments: $2 million Placement completed and Non-Renounceable Rights Issue to raise up to $2.037 million undertaken
- Board strengthened: Asia-Pacific industrialist and investor, Dato' Muhamad Adlan bin Berhan, appointed an Executive Director
SEPTEMBER QUARTER COMMENTARY
Chapmans enjoyed a highly active September quarter, highlighted by the strong progress made by core businesses in its investment portfolio, including the breakthrough cleantech waste treatment business Syn Dynamics Australia Pty Ltd (SDA) and sports-focused digital media business 20FOUR Media Holdings Pty Ltd (20FOUR). During the quarter Chapmans also made a strategic entry into the rapidly growing global medicinal cannabis sector via a direct equity investment in MJ Life Sciences Pty Ltd (MJLS), an Australian special-purpose company with the aim of becoming a leading global medicinal cannabis holding and investment company.
The Company also completed a Placement which raised $2 million and announced a Non-renounceable Rights Issue to raise up to $2,037,500 to fund its ongoing investment activities and to provide working capital. It is noted that the Company's financial performance in the quarter was impacted substantially by one-off legal costs associated with its investment in Digital4ge. These costs totalled $339,855 and accounted for the large majority of the $469,000 in administration and corporate costs reported in the Company's Appendix 4C for the September quarter. The Company also continued to provide capital to its core underlying investments in the quarter, pursuant to its investment strategy - Chapmans invested a total of $1.148 million in its investment portfolio in the quarter, and this also impacted on the quarter's financial result.
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About Chapmans Limited
Chapmans Limited (ASX:CHP) is an ASX-listed diversified investment company engaged in special situation investments across a diverse range of industries, with a focus and expertise in the mobile and advanced industrial technology sectors. The Company seeks to be an active strategic investor in high growth areas of the market and to identify and work with emerging high growth companies. Chapmans' investment philosophy and approach are based on a unique mix of high conviction and special situation features, characterised by advisory and equity investments structured around specific events and assets for both public and large private corporates.
The Company made its first strategic investment into blockchain in 2017 and established the Blockchain Industry Advisory Board to identify and assess compelling blockchain investment opportunities. Chapmans' investment in blockchain technology aligns with its growth plans and commitment to investing in early stage technologies with reach into key international markets.
To learn more please visit: http://www.chapmansltd.com