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Oxford Technology 3 AGM 2021

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DFox
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Oxford Technology 3 AGM 2021

#426534

Postby DFox » July 10th, 2021, 8:04 pm

The forthcoming AGM could well prove to be investors best opportunity to see a meaningful return of their capital. The VCT has been running for 19 years with a negative return over the period.

What is significant now is that 87 percent of the assets are in cash and two aim stocks; Scancell and Arecor (subject to a lock in). With the shares being totally illiquid it strikes me that we could have a fairly straightforward liquidation of the fund and finally have the chance to get out. Voting against continuation as a VCT could well be the best catalyst for improvement.

scotia
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Re: Oxford Technology 3 AGM 2021

#426676

Postby scotia » July 11th, 2021, 1:07 pm

DFox wrote:The forthcoming AGM could well prove to be investors best opportunity to see a meaningful return of their capital. The VCT has been running for 19 years with a negative return over the period.

What is significant now is that 87 percent of the assets are in cash and two aim stocks; Scancell and Arecor (subject to a lock in). With the shares being totally illiquid it strikes me that we could have a fairly straightforward liquidation of the fund and finally have the chance to get out. Voting against continuation as a VCT could well be the best catalyst for improvement.


AGM report for Oxford 3 - year ending 28th February 2021. Includes Chairman's statement to 30th June 2021, and the Resolutions for the AGM on 25th August 2021. Can be down loaded from https://www.oxfordtechnologyvct.com

Yes - a bid offer spread of 20p to 50p on an estimated NAV of 42p, and no change in this position for a substantial time, surely requires some action.
For the forthcoming AGM, I note that Resolution 10 seeks the continuation of a policy which allows the company to buy back shares - yet it doesn't seem to use this facility, hence leaving the illiquidity in the shares.
And I'm puzzled by the Resolution 13 to subdivide and reclassify the shares. It appears that it is a device to increase the distributable reserves - but it is not clear if this is intended to improve liquidity.
I have considerable sympathy with a vote against continuation as a VCT. The Director's report indicates that this may crystallise substantial deferred CGT liabilities for a few individuals who invested pre 2004. But surely such considerations cannot overrule the need of the majority of investors to see a return close to NAV - rather than the 50% of NAV currently available. Currently I see no detailed path to achieve this improvement in a continuing VCT.

UncleEbenezer
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Re: Oxford Technology 3 AGM 2021

#426711

Postby UncleEbenezer » July 11th, 2021, 3:16 pm

scotia wrote: Currently I see no detailed path to achieve this improvement in a continuing VCT.

I have no skin in this game, but I wonder if both sets of requirements could be met by a takeover? Get yourselves merged into a mainstream VCT - e.g. one of the Foresights or Albions - with tighter discount and better liquidity?

scotia
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Re: Oxford Technology 3 AGM 2021

#426778

Postby scotia » July 11th, 2021, 6:35 pm

UncleEbenezer wrote:
scotia wrote: Currently I see no detailed path to achieve this improvement in a continuing VCT.

I have no skin in this game, but I wonder if both sets of requirements could be met by a takeover? Get yourselves merged into a mainstream VCT - e.g. one of the Foresights or Albions - with tighter discount and better liquidity?

I only have a small investment - so it would would not be a significant hit if I were to lose the lot.
The Directors have been trying (without success) to find a partner which would allow the asset base to expand. They have also considered merging with one or more of the other Oxford Technology VCTs, but have concluded that the expenses would result in too long a payback period to make this in OT3's best interests.
So I do think that if the Directors can find no way of substantially improving the share price liquidity of the current VCT, it does feel that the VCT is no longer viable. I would be happy to hear that this is not the case.

timbo003
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Re: Oxford Technology 3 AGM 2021

#426926

Postby timbo003 » July 12th, 2021, 9:45 am

I believe the Annual Report and proxy forms are due to go out to shareholders later this week, but I note that there will be two separate opportunities to quiz the directors on possible future directions of the company at meetings to be held before the AGM which is due to be held on 25 August 2021. The first meeting (to be held on 28 July 2021) will be an actual physical meeting which shareholders can attend in person (does anyone remember them from pre-pandemic days?) and the second meeting (to be held on 12 August 2021) will be an on line meeting. Details are given in the annual report (see link below)
https://www.oxfordtechnologyvct.com/adm ... _20-21.pdf

Regarding voting, I intend to keep my powder dry on the proxy voting until I hear what they have to say at the pre AMG investor meetings (I intend to attend both)

• Wednesday 28 July 2021 at 2pm: An informal shareholder meeting held in person in Oxford,
providing an opportunity for a face-to-face meeting with shareholders. The agenda will include a
presentation from OTM followed by a shareholder Q&A to include future strategy. There will
hopefully be some investee presentations, though these may be pre-recorded. If you intend to attend
this session, please notify us in advance by email to vcts@oxfordtechnology.com in case there
are changes to arrangements that need to be communicated at short notice.

• Thursday 12 August 2021 at 10.30am: webinar – a repeat of the above shareholder event, but held
online, and using chat/email facility for shareholder Q&A. Details for how to register for this event
are on http://www.oxfordtechnologyvct.com.

• Wednesday 25 August 2021 at 10.30am: Virtual AGM. This will be a meeting to consider the
formal business of the AGM. All voting will be by poll (i.e. not using a show of hands), so please
ensure that you return your proxy forms as soon as possible (and in any event by 10.30am on 23
August 2021) and / or register your votes with your broker if your shares are held with nominees. It
is strongly encouraged that you appoint the Chairman of the AGM as your proxy to enable the orderly
conduct of voting at the AGM. Please refer to the Notice of AGM for further details regarding
lodging a proxy form and for how to register to attend the event. Please send in any questions you
have, and we will seek to answer them at the meeting and also put up a Q&A section on the website

scotia
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Re: Oxford Technology 3 AGM 2021

#427086

Postby scotia » July 12th, 2021, 4:36 pm

timbo003 wrote:• Thursday 12 August 2021 at 10.30am: webinar – a repeat of the above shareholder event, but held
online, and using chat/email facility for shareholder Q&A. Details for how to register for this event
are on http://www.oxfordtechnologyvct.com.

I haven't been able to find the login details (of the Zoom meeting) on the above site - have you?

DFox
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Re: Oxford Technology 3 AGM 2021

#427139

Postby DFox » July 12th, 2021, 6:16 pm

I cannot see the details of the zoom meeting either.

I will be voting against continuation as I agree with Scotia that the VCT is not viable and cannot see how that can change. My concern is that there will be a token return from the sale of Ixaris and the remaining cash will be burning a hole in Oxford Technology Management’s pocket. As things stand I could almost totally replicate OT3 simply by buying Arecor and Scancell, without having to pay management charges, listing fees e.t.c. I really hope that with the forthcoming vote it won’t be shareholder apathy that determines the outcome.

scotia
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Re: Oxford Technology 3 AGM 2021

#428707

Postby scotia » July 19th, 2021, 10:02 am

Here are the details and links to the three Oxford Technology meetings - the in-person informal shareholder meeting on 28th July, the online version on 12th August, and the online AGM on 25th August.

https://docs.google.com/forms/d/e/1FAIpQLSfQKixrRub92tqdKlqeo8bX5JXw0iPTEL7JfAAMxjhBS__f7Q/viewform

I haven't yet signed up to any - but it looks like each of these meetings will cover all four VCTS.

skininthegame
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Re: Oxford Technology 3 AGM 2021

#429659

Postby skininthegame » July 22nd, 2021, 2:45 pm

Big share buy- backs should narrow the discount and improve NAV for continuing shareholders.

127tolmers
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Re: Oxford Technology 3 AGM 2021

#429823

Postby 127tolmers » July 23rd, 2021, 7:24 am

https://www.investegate.co.uk/oxford-te ... 1439H7725/

Notice of AGM and Shareholder Presentations

Copies have been posted to shareholders of the Annual Report and Accounts of the Company in respect of the financial period ended 28 February 2021 and the Notice of Annual General Meeting to be held on 25 August 2021 and the Shareholder presentation meetings to be held on 28 July and 12 August. Please sign up for the meetings at https://forms.gle/oTHUsj7dquSwpCug7

Copies of the Annual Report and Proxy Forms are available on the http://www.oxfordtechnologyvcts.com website and the text of the accompanying shareholders letter sent out is repeated below.

Dear Shareholder,

I am pleased to announce that the Annual Accounts for the year ended 28 February 2021 are now available for download from http://www.oxfordtechnologyvct.com/vct3.html.

The Net Asset Value (NAV) per share has decreased by 27.4p from 69.6p at 29 February 2020 to 42.2p at 28 February 2021. This is a disappointing result. The portfolio value of Ixaris Group Holdings declined by £2.3m with the collapse of its market and the loss was only partially offset by a gain of £0.7m in Scancell. However, Ixaris has now been sold. On 14 May 2021 a sale and purchase agreement was signed allowing OT3 to exit at a profit for cash close to the value we were carrying at year end. Completion of the sale is expected to be 31 July 2021.

The unaudited NAV per share rose to 44.4p as at 31 May 2021. This incorporates the IPO share price of Arecor which floated on AIM on 3 June partially offset by a fall in the Scancell share price. The Directors have also reviewed the carrying costs of the unquoted investments and these remain largely unchanged from their values at 28 February 2021.

Shareholders should note that as a result of the sale of Ixaris and the flotation of Arecor that your Company has become transformed into a very concentrated life sciences AIM VCT with substantial cash resources.

This opens up new possibilities for a return of profits and a reduction in the discount at which OT3 shares trade to NAV. Clearly it is expected that substantial Ixaris proceeds will be returned to shareholders as dividends, but the Board is conscious of its additional responsibilities. There has previously been little liquidity for trading OT3 shares, the spread too high and the discount too large. The Board has a governance requirement to deliver on this, where practicable.

In previous years, it has proved impossible to follow the practices of larger VCTs to provide share buyback facilities due to the lack of cash resources. As mentioned in the Annual Report, the buyback strategy is now under review. A presentation will be made during the upcoming meetings detailed below and placed on the website. We will welcome shareholder views and input as we finalise our review.


After hosting last year’s AGM via electronic means, we had hoped to return to full normality for this year’s event, while also recognising the convenience of enabling virtual participation.Having not had the chance to meet shareholders for over two years, we are therefore planning the following shareholder interactions to maximise the opportunity for shareholder involvement during the holiday period:

Wednesday 28 July 2021 at 2pm: An informal shareholder meeting held in person in Oxford, providing an opportunity for a face-to-face meeting with shareholders.

The agenda will include a presentation from OTM followed by a shareholder Q&A to include future strategy. There will be investee video presentations by Arecor, Scancell and Select Technology. If you intend to attend this session, please notify us in advance by email to vcts@oxfordtechnology.com in case there are changes to arrangements that need to be communicated at short notice.

Thursday 12 August 2021 at 10.30am: webinar – a repeat of the above shareholder event, but held online, and using chat/email facility for shareholder Q&A. Details for how to register for this event will be on the website: http://www.oxfordtechnologyvct.com. We will also put any of the investee company video presentations on the website.

Wednesday 25 August 2021 at 10.30am: Virtual AGM. This will be a meeting to consider the formal business of the AGM. All voting will be by poll (i.e. not using a show of hands), so please ensure that you return your proxy forms as soon as possible (and in any event by 10.30am on 23 August 2021) and / or register your votes with your broker if your shares are held with nominees. It is strongly encouraged that you appoint the Chairman of the AGM as your proxy to enable the orderly conduct of voting at the AGM. Please refer to the Notice of AGM for further details regarding lodging a proxy form. Please send in any questions you have, and we will seek to answer them at the meeting and also put up a Q&A section on the website.

We hope shareholders will appreciate the flexibility being offered.

scotia
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Re: Oxford Technology 3 AGM 2021

#429974

Postby scotia » July 23rd, 2021, 5:56 pm


thanks for the link to the update. On the subject of share liquidity they have added a slightly increased promise to the AGM text

AGM Text - the buyback strategy is under review. we will welcome shareholder input during our upcoming meetings.

Is now the buyback strategy is under review. A presentation will be made during the upcoming meetings detailed below and placed on the website. We will welcome shareholder views and input as we finalise our review.

Its a pity they don't simply publish their review now, and let the shareholders provide feedback before the meetings. For any sensible response from shareholders, details are required, which they can mull over. E.G. - does the Board know how many investors may be seeking a way out? Can they afford to fund a substantial withdrawal at a reasonable discount to NAV? What do they think a reasonable discount will be? These are all obvious questions - answers would be appreciated.

scotia
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Re: Oxford Technology 3 AGM 2021

#431073

Postby scotia » July 28th, 2021, 11:35 pm

New update from Oxford Technology 3 - published ahead of the meeting in Oxford at 2pm today.

https://www.investegate.co.uk/oxford-tech-3-vct/gnw/strategy-company-operations-update/20210728120000H8573/

scotia
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Re: Oxford Technology 3 AGM 2021

#431189

Postby scotia » July 29th, 2021, 11:55 am

scotia wrote:New update from Oxford Technology 3 - published ahead of the meeting in Oxford at 2pm today.

https://www.investegate.co.uk/oxford-tech-3-vct/gnw/strategy-company-operations-update/20210728120000H8573/


From the above report

The Board can now report that we are in active discussions with a party who could provide the opportunity we have been seeking. This party, whose identity is currently confidential, would be a good partner to work with and would look to raise funds in a new share class. This is consistent with the Board’s stated aim to seek to increase the Company’s net assets, to enable the running costs to be shared more widely and to create fund longevity for those shareholders with deferred capital gains.


What bothers me is that there is no mention of improving the share price liquidity for existing shareholders - it all seems to centre on providing longevity for shareholders with capital gains to shelter. The tail wagging the dog?

There was also another RNS issued yesterday

https://www.lse.co.uk/rns/OTT/portfolio-update-4xs9fs59xxw0mr2.html

It appears that there will be administrative delays in completing the sale of IXARIS - although there are assurances that it will still proceed.

DFox
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Re: Oxford Technology 3 AGM 2021

#431284

Postby DFox » July 29th, 2021, 5:49 pm

I may have missed the point, but one month ago the board stated;

The Directors of OT3 concluded that there were very significant upfront costs to effect such a merger which made the payback period too long, thus the Directors of OT3 concluded that a merger at this time was not in OT3’s best interests. (Page 7, Annual Report).

The latest RNS states they are investigating a merger with OT2. That seems quite a change in view.

I would also agree there seems only to be a focus on longevity. In my opinion it suggests a lack of alignment between shareholder interests and those of the board / Oxford Technology Management. I can see why they would want to continue as is, I am not so sure that shareholders will necessarily see it the same way.

scotia
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Re: Oxford Technology 3 AGM 2021

#431508

Postby scotia » July 30th, 2021, 3:38 pm

DFox wrote:I may have missed the point, but one month ago the board stated;

The Directors of OT3 concluded that there were very significant upfront costs to effect such a merger which made the payback period too long, thus the Directors of OT3 concluded that a merger at this time was not in OT3’s best interests. (Page 7, Annual Report).

The latest RNS states they are investigating a merger with OT2. That seems quite a change in view.

I would also agree there seems only to be a focus on longevity. In my opinion it suggests a lack of alignment between shareholder interests and those of the board / Oxford Technology Management. I can see why they would want to continue as is, I am not so sure that shareholders will necessarily see it the same way.

I dismissed the "possible merger" pronouncement from Oxford Technology 2 since it specifically stated that any merged funds would be into separate share classes. So I can't see how this changes the lack of share price liquidity in Oxford Technology 3 shares.

scotia
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Re: Oxford Technology 3 AGM 2021

#432491

Postby scotia » August 4th, 2021, 2:14 pm

I'm a bit disappointed by the apparent lack of any communications from Oxford as a follow up of the shareholder meeting on 28th July. OK - I know that there will be an online repeat on 12th August - presumably of the formal presentations. But what happened at the shareholder Q&A, which was to include future strategy? It would be useful to know what happened - so that some relevant, non duplicating, questions could be prepared for 12th August.

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Re: Oxford Technology 3 AGM 2021

#432509

Postby Kidman » August 4th, 2021, 3:57 pm

I am not and never have been a shareholder in any of the OT VCTs although I nearly subscribed at launch of one of the later ones.

Having read the posts over the years it seems that there could be a case for as many of the OT VCTs as shareholders wish going into synchronous liquidations using the same liquidator to reduce costs.
Of course, as with other VCTs taking the liquidation route this does crystallise sheltered capital gains and it does stop income for the managers which I suspect in this case is why it won't happen.


scotia
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Re: Oxford Technology 3 AGM 2021

#432784

Postby scotia » August 5th, 2021, 9:29 pm


Many thanks for the links to the updates on proposed strategies.

My first thoughts on reading

At Feb 21 the total return to OT3 shareholders was 78p per share made up of 36p dividends and 42p net assets
This is a disappointing return for a 19 year old fund with an originally anticipated life of 7-10 years
On the Ixaris sale completion, the portfolio will be 63% quoted, 8% unquoted and 29% net current assets


were that, with the current share liquidity, there should be no problem in winding up the VCT and promptly returning the majority of the NAV to shareholders. I believe that the ability of deferring capital gains in VCTs ended in 2004 so the the deferral seems to have lasted substantially longer than could have been expected at the initial investment - hence I really don't think that tail should wag the dog.
BUT - further down there is a suggestion that liquidation could take two years. Why? There seems to be some suggestion that this is associated with an Arecor lock-in. Further details are required.

So my thoughts are - wind up the VCT, if a substantial majority of the NAV can be realised in a reasonable time scale. Details are required as to any barriers to such a policy.

My second choice, if there are barriers to an early wind up, would be a tender offer to allow shareholders to exit at a reasonable discount to NAV - I think the 15% quoted is not reasonable when compared to quoted prices on other VCTs. 10% would be more acceptable, but not generous. However, does the board believe that this is practicable? Have any soundings been made on a possible take up? I certainly think the board would be unwise to propose a substantial post Xaris dividend, until this could be resolved.

So before making a sensible choice, I really need more detail from the board.
In the case of a wind-up, what fraction of the NAV can be realised promptly. How long would other components take to sell?
In the case of a tender offer - how many shareholders are likely to accept, and could it managed from the net current assets.


And a finally - a little niggle - I don't think the board's following statement is helpful

Arithmetically, a tripling in Scancell and Arecor share prices would double OT3 NAV, no forecast implied


And what happens if they fall to one third of their current value, no forecast implied?

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Re: Oxford Technology 3 AGM 2021

#434169

Postby 127tolmers » August 11th, 2021, 7:46 pm



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