AUCTUS INVESTMENT GROUP LIMITED 29 April 2022
ASX Announcement
March 22 Quarter in Review - Appendix 4C
Key Points
• Strong cash receipts for the March quarter of $2.06M
• Positive Cash from Operations for the quarter of $0.35M
• Cash balance at the end of December was $6.4M
• Listing of US Student Housing REIT (ASX:USQ) in March
• Binding PSA entered into to sell 100% of portfolio Company esVolta, LP
Auctus Investment Group Limited ('AVC', 'Auctus' or 'the Company') is pleased to provide the following update in relation to activities for the March 2022 quarter.
Auctus Asset Management Pty Ltd (Auctus AM)
Auctus Asset Management ('Auctus AM') increased AUM from A$466M at the end of December 2021 to A$479M at the end of March 2022. The key driver behind this growth was the listing of the US Student Housing REIT on the 8 March 2022. Importantly, post this listing, all Assets Under Management (AUM) are now fee earning*. This should lead to a continual improvement in recurring revenue in Auctus AM over coming quarters.
*As all AUM is fee earning, Auctus AM will not report this figure from June 2022.
Cash Flow from Operations and Cash Position
Auctus generated $2.06M in cash receipts from customers for the March 2022 Quarter. While product manufacturing costs we higher, the on-going costs (staff and corporate) were consistent with the last two quarters. Overall, Auctus generated a positive cash from operations of $0.35M for the quarter.
Revenue for the quarter predominantly came from the US Student Housing REIT, the Pet Fund and the Luxury Escapes Fund.
Total cash receipts for the 9 months to March were $6.7M and positive cash from operations $2.4M.
After investing approximately $7.3M as outlined below, the Company ended March 2022 with just over $6.4M in cash.
All payments noted in Section 6 of the accompanying Appendix 4C for related party payments during the quarter relate to settlement of directors' fees and salaries, including payment of invoices and amounts due from prior periods.
Updates
esVolta, LP esVolta is a leading developer, owner and operator of U.S. utility-scale energy storage projects.
As previously advised, Citigroup was engaged to run a sale process for the esVolta business in September 2021. Auctus is pleased to announce that esVolta, LP has signed a binding Purchase & Sale Agreement for 100% of the equity in the business.
The transaction is subject to regulatory approval. We look forward to sharing more details of the transaction upon closing.
During previous quarters, the Company provided a short-term working capital loan to esVolta. As updated to the market on 7 December 2021, this loan for US$2.5M was expected to be repaid towards the end of Q1 2022. As part of this sale process, the Company has agreed to extend the repayment date of this short-term loan to no later than 30 June 2022. Additional interest charges have been agreed on the outstanding amount.
US Student Housing REIT (ASX: USQ)
During the quarter, US Student Housing REIT (ASX: USQ) listed on ASX forming the base of what we intend to be a growing percentage of 'perpetual' AUM. The Company is the appointed investment manager of this trust and generates investment fee revenue based on the gross asset value of the trust.
The Company also made a direct investment in USQ during the period totalling $5.8M, representing a unit holding of 7.62%.
Luxury Escapes
During the quarter, the Company also made an equity investment into the Luxury Escapes Fund totalling $1.5M.
The travel sector is currently experiencing a faster rebound than many expected, with most countries winding back Covid restrictions. Luxury Escapes (Lux) has benefited from this 're-opening' in particular with Fiji, Bali and the Maldives attracting significant tourist numbers.
In addition to the sector rebound, Lux has continued to build out its marketplace division enabling it to attract new customers to the brand.
-EndsThis announcement has been authorised for release by the Board of AVC.
For all shareholder enquiries please contact:
Campbell McComb
Managing Directorenquiries@auctusinvest.com
Rule 4.7B
AUCTUS INVESTMENT GROUP LIMITED (ASX: AVC)
Appendix 4C
Quarterly cash flow report for entities subject to Listing Rule 4.7B
Name of entityAUCTUS INVESTMENT GROUP LIMITED (ASX: AVC)ABN
76 149 278 759
Quarter ended ("current quarter")
31 March 2022
Consolidated statement of cash flows | Current quarter $A'000 | Year to date (9 months) $A'000 |
| 2,055 - (428) - - (693) (577) - - - - - - | 6,731 - (627) - - (2,016) (1,660) - - - - - - |
357 | 2,428 |
2. | Cash flows from investing activities | |
2.1 | Payments to acquire or for: | |
(a) entities | - | - |
(b) businesses | - | - |
(c) property, plant and equipment | - | - |
(d) investments | (7,304) | (11,812) |
(e) intellectual property | - | - |
Page 1 |
Appendix 4C
Quarterly cash flow report for entities subject to Listing Rule 4.7B
Consolidated statement of cash flows | Current quarter $A'000 | Year to date (9 months) $A'000 |
(f) other non-current assets
| - - - - - - - - - - | - - - - - - - (2,970) - - |
(7,304) | (15,532) |
| - - - (2) - - - - - | - - 5,008 (33) - - - - - |
(2) | 4,975 |
4.
Net increase / (decrease) in cash and cash equivalents for the period
4.1
Cash and cash equivalents at beginning of period
4.2
Net cash from / (used in) operating activities (item 1.9 above)
13,477 357
14,536 2,428
4.3
Net cash from / (used in) investing activities (item 2.6 above)
(7,304)
(15,532)
Page 2
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Auctus Investment Group Limited published this content on 28 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2022 01:31:10 UTC.
