Exelity Monthly Report – December 2022

The net return for Exelity during the month of December amounted to -0.7 %, compared to -2.7% for the Stockholm Stock Exchange's broad index OMXSPI. However, the development was 0.0 % adjusted for the increase in value in Astor where our shares are registered during the next week, but existing owners in the listed Renewable Ventures Nordic have already taken a position and priced the reverse acquisition of Astor since it was announced in September. The result is acceptable in light of the fact that it was a month where most things went wrong. The fact that we still achieved our goal of outperforming relative to the stock market in the weak market is due to the resilience that comes from finally achieving the allocation we want, which we described in last month's newsletter.     

Loan exposure continued to increase by 4 percentage points to 31%. The loan portfolio now contributes an interest yield of 1.3% per month. Our total future interest payments (incl. set-up fees) for the year 2023 correspond to 17% return on the existing loan stock, or 5 % of today's AUM. We expect the average interest rate to increase going forward with the new loans we have in our pipeline. The income and return from financial transactions amount to 13 % and 4 % respectively for 2022, with emphasis in the last months of the year. Since its inception just one year ago, Exelity has gone from nothing to participating in 31 guarantees, thus establishing itself as a major player in the guarantee market. The majority of our guarantees expired in December, but we have signed four new, smaller guarantees for 2023, as well as a loan with the possibility of conversion in Intellego. After our ability to do more and larger transactions increased by several factors during October, our focus is on continuing to grow transaction returns through increased transaction exposure.
 

The month's development was negatively impacted by Smart Eye (-2.2 %) and the reversal of warranty compensation in Swedish Stirling (-1.1 %). Swedish Stirling chose to extend the issue due to bad news after the end of the ordinary subscription period, which gave us the opportunity to withdraw from the guarantee commitment given that we renounced the guarantee compensation we were entitled to according to the agreement. The other warranty portfolio compensated for the Swedish Stirling, but did not give us the boost we would otherwise have had. Development in the listed portfolio was sustained by 11 Bit Studios, Upsales and Neonode. 11 Bit is current with the imminent announcement of Project Vitriol, which is the company's largest and most ambitious game project to date. Upsales stock has continued to trade up after the period driven by strong ARR figures for Q4. Neonode came with more positive news related to its patent lawsuits against Apple and Samsung. This month offers the decisive milestone in the patent processes.