By Jeff Kimber NanoUniverse, the Aim-listed incubator, is to change business strategy to be...
By Jeff Kimber
NanoUniverse, the Aim-listed incubator, is to change business strategy to become a producer and distributor of films and other entertainment to a variety of platforms.
In the next two weeks the company hopes to be able to fully reveal its new strategy, which will entail it working in conjunction with strategic partners. There will also be a "significant" return of capital to investors.
The company still has about £25m of the £25.7m raised through its flotation last March, having found a dearth of appetising investment opportunities.
Its stated strategy was to invest in, develop and operate companies positioned to take advantage of the internet's transition to broadband. The board now believes that strategy is too risky.
Just two initial investments were made, in student website botBeat.com and comedy content aggregator NextEnt.com, but the company noted the volatility and unreliability of online advertising as the environment for dot.coms deteriorated, and ceased further investment, writing off about £187,000.
NanoUniverse stresses it is not becoming a cash shell and will not be changing its name. Instead, it hopes to take advantage of the entertainment background of its management. Chairman Alan Buggy is a former managing director and chief corporate finance and business strategist at Price Waterhouse US Entertainment, Media and Communications.
Investors in Nano-Universe have been deafened by the silence coming from its in terms of investing in companies looking to take advantage of broadband opportunities. They could be forgiven for asking why their money is better off with NanoUniverse than in their own bank accounts. But the market has treated the company harshly, and its market value has fallen below £16m despite having £25m in the bank. Investors should be able to look forward to a healthy payout.
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