Auctus to take a million dollar stake in NY venture capital firm


Published 04-OCT-2018 12:47 P.M.


3 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

Auctus Alternative Investments Limited (ASX:AVC) has announced the execution of binding agreements in relation to transactions with Scout Ventures Fund III, L.P, (ScoutFund III), Scout Ventures Fund III, GP, LLC (Scout Fund III GP) and Bradley C. Harrison (Harrison).

AVC will invest up to US$1,000,000 to acquire a minimum 10% economic interest in Scout Ventures Fund III, G.P., a venture capital investment firm is based in New York.

The Australian alternative investment funds manager may also receive initial and ongoing fees for funds invested in Scout Ventures Funds and for future Special Purpose Vehicles. Further, Scout Ventures will assist AVC in identifying investment opportunities in emerging and frontier technology industries.

Scout cultivates relationships with otherwise hard-to-access, experienced tech business founders with a particular interest in AR/VR, AI, drones, robotics, IoT, enterprise SaaS, cybersecurity, and big data.

Founded in 2012, Scout has achieved a lifetime blended IRR of 18.4% and taken in excess of a dozen companies from discovery phase to exit, profitability or other liquidity event.

Scout has over 65 investments across three fund vehicles and has made cash distributions for each of its previous funds.

AVC has executed a Letter Agreement, Investor Referral Agreement and Economic Assignee Agreement which provides for various transactions involving AVC and the Scout Parties.

The Scout Fund III GP is proposed to be a US$50 million fund deployed across approximately 24 companies in the target sectors identified above.

AVC has proposed making the Scout investment via its wholly owned subsidiary High Line Alternative Investments Pty Ltd (HLIA).

In addition, the company advised it will now take steps to appoint Bradley Harrison to be a member of the Board over the coming weeks.

Legal proceedings update

AVC has today provided an update to the company’s previous ASX announcement lodged on 22 June 2018 in relation to the writ of summons issued out of the Supreme Court of Western Australia by PKF Lawler Pty Ltd (now renamed Hall Chadwick Pty Ltd) and another associated entity.

The company advised it has now served a defence in the proceedings which includes a counterclaim against both plaintiffs, and joining Mr John Bell as a defendant to the counterclaim.

Mr Bell is a former Director of the company who was nominated by a plaintiff to act as CFO under a service arrangement which is the subject of various claims in the proceedings. AVC will continue to vigorously defend the proceedings and progress its counterclaims and will update the market as developments occur.

It is important to note that AVC is itself a speculative investment, so professional financial advice should be sought if considering this stock for your portfolio.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.


Discover Small Cap
Biotech Stocks

Join thousands of other Investors following our stock commentary for Free