Liquidations Watchlist #5

10 liquidations, 2 potential liquidations and updating 4 previously mentioned.

Apr 20, 2025

A longer list this week so I will keep the intro short.

I’ve added a section at the bottom that updates a couple of situations mentioned in previous watchlists.

I think it could be a good period for our liquidations niche. Economic volatility and cyclicality will mean more companies are better off dead than alive.

Below are operating companies, investment trusts and REITs. Some are very illiquid so you will have to be patient and opportunistic if you bid.

Note: NAV is reported NAV, book value or my estimate. Timeframe is based on my estimate. Both could change.

Centogene (OTCMKTS:CNGF) is a biotech company that helps diagnose rare and brain-related diseases by studying a person's biological data. In November 2024 they announced the sale of their only subsidiary. The sale and liquidation was approved in December that year. At the time of the sale announcement the company said liquidation distributions could be up to $0.20 or lower. The transaction closed on 12th March 2025. They have not confirmed what the liquidation distribution will be or when. The shares trade on the OTC and will be delisted. NAV $0.18. Timeframe 1 year.

Spectra7 Microsystems (CVE:SEV) creates silicon products that enable copper cables to run at higher performance levels. On 7th March they announced the sale of the company. On April 15, they revised the terms of the liquidating distributions to; total value $0.0104, consisting of a cash payment of USD $0.0039 and 1 non-interest bearing contingent value right (CVR) valued at USD $0.0065. The transaction was approved on 17th April and the deal will close within a week. Shares will delist after completion. They also trade on OTC- SPVNF. NAV USD $0.0104. Timeframe 1 year.

Jarvis Securities plc (LON:JIM) is a small UK financial services firm. On Tuesday, they announced they had sold their retail brokerage business for £11m. The directors said they are reviewing strategic options but at this time don’t intend to make any acquisitions with the cash. They then said they will eventually seek a delisting and return proceeds to shareholders. Chairman/CEO Andrew Grant and relatives own 50%+ of the stock so the odds are high there will be no objection to this sale and liquidation. The company also owns an office/data centre on the balance sheet at book value for £125k. I’m still trying to locate this and to see if there's any hidden value. NAV £0.20. Timeframe 2 years.

Northgold (STO:NG) is a Swedish gold exploration and development company. They announced on 15th April the sale of the shares in their subsidiaries which include all their gold assets for 34m SEK. The consideration is mostly 70m shares in the acquirer (ASX:NNL) and a small cash proponent. Shareholders will vote on the transaction and later vote on a liquidation. Shareholders representing 62% of the votes in NG have said they will vote in favor. NG shareholders will receive the shares of NNL in the liquidation. I don’t think the stub will have any value after wind down costs. You can short NNL. NAV 1.48 SEK. Timeframe 1 year.

Symphony International Holdings (LON:SILH) is an investment fund that was listed in 2007 to invest in Asian consumer and real estate businesses. About 90% of NAV is in unlisted investments. In 2021, fund manager Asset Value Investors started a campaign to “Save Symphony”. In 2023 SILH announced they would start an orderly realisation period over the medium term. Since then the share price is down over 30% and the discount to NAV is over 57%. There has not been any capital returned to shareholders and it looks like without another activist getting involved it will be a very slow wind down. NAV $0.85. Timeframe 7 years.

Avance Gas (OTCMKTS:AVACF) operated a fleet of very large gas carriers. Over the last year they have been selling vessels and distributing proceeds to shareholders. The stub is cash from the final sale proceeds. What's strange is the company's final payout amount is $0.74 but the shares as of Thursday are trading at $0.99. From reading the materials it seems that there are no assets left after this dividend. Anyone have any idea what's going on? NAV $0.74. Timeframe 6 months.

Aker Carbon Capture (OSL:ACC) specialises in carbon capture technologies. In 2024 it sold its business for cash but kept 20% of a newly formed JV. There are potential performance payments due up to 2027 and put and call options on the remaining stake that expire in 2027. In March they paid out 4.82 NOK in a dividend. A 0.98 NOK dividend is due in May. NAV 3.50- 8.33 NOK. Timeframe 3 years.

Evercel (OTCMKTS:EVRC) was an investment holding company. Dave Waters wrote about them here. In 2021 they participated in the take private of ZAGG with a 20% stake. EVRC then decided to liquidate the rest of the company. It's now basically a shell with supposedly no value. However, it's trading at a market cap of $10m. That’s because EVRC distributed the ZAGG stake into a liquidating trust. The company claimed if you held EVRC on the record date (26th February 2024) you would have the rights to the ZAGG stake which could be worth $30million. However shareholders dispute that the transfer was legitimate because it wasn’t reported to FINRA. Tim Erikson has also written about EVRC. This is a binary situation and could be worth a punt. NAV $0-$1. Timeframe 2 years.

abrdn Diversified Income and Growth plc (LON:ADIG) is an investment fund that invests in private markets, alternatives, listed equity and fixed income and credit. A wind-down strategy was approved in February 2024. In July 2024 they returned the proceeds from their publicly listed assets. The private market assets are expected to mature between 2025-2033. This long timeframe is why I have ignored ADIG up to this point. However after a failed portfolio sale earlier this year, last week the company announced they would commence a secondary sales process. This would involve sales to multiple parties and quicker returns to shareholders. The board said if the sales were done, it would be at a material discount to carrying values. I want to see a bigger discount than is currently on offer and quick sales to get me interested. NAV £0.675. Timeframe 4 years.

XLM Media (LON:XLM) is an AIM listed gambling company. Last year they sold off multiple divisions and decided to liquidate the company. 46% of shares were tendered in January 2025. What's left is the last few puffs of the cigar which is performance related cash received from the divestments. There is an upcoming tender for 70.90% of shares at £0.11. A record date of 28th April and payment 9th May. The final puff will be £0.10 +/-, the residual cash after paying tax and wind down costs. During the sell off I was trying to pick these up for £0.09 but couldn’t get a fill. NAV £0.107. Timeframe 1 year. Shares will delist on 14th May.

Two potential liquidations to watch.

German High Street Properties A/S (CPH:GERHSP) as the name suggests, they have 13 prime high street properties across 11 cities in Germany. Two shareholders who collectively own 26% of the company have put forward proposals at the general meeting for the board to start a managed wind down and liquidation. The chairman is associated with the controlling shareholders who own 54% of the company. The board does not recommend the proposals. The meeting is on 30 April. Low odds this one will pass but it's trading at 42% discount to NAV and one to watch. NAV 128 DKK.

Pacific Current Group (ASX:PAC) is a boutique asset manager that owns stakes in 8 other asset managers across US, Europe and Australia. It's been an ongoing situation since mid 2023. Special situations investor Jeremy Raper has covered it on his twitter. After two failed takeovers in 2023 they have been selling off their investments. They recently bought back over $265m of stock in an off market buyback at $12. The company appears to be in slow liquidation without announcing it's going to wind up. You also have an CEO calling himself “Acting CEO” and the CFO publicly looking for other opportunities. They have been cagey on plans to reinvest cash. NAV $15.50.

Previously mentioned opportunities that should be given an update.

Zytronic plc (LON:ZYT) a manufacturer of touch based sensors. I profiled this in Watchlist #2. A couple of days later the company came out with a £0.44-£0.60 liquidation value range and 9 month timeframe. Shortly after I was able to pick up shares at £0.38. I thought this was very good risk/reward- even at the low end and pushing the timeframe out to 1-1 ½ years. ZYT is now delisted and the outcome of the property sale and cash burn will determine how much we get back in liquidation.

Asset Plus Ltd (NZE:APL) a single asset debt free REIT in Auckland. I briefly mentioned this in Watchlist #1 and also did a quick write up on it. On 9th April they announced a 8% decrease in the value of their only property, a new office building- 8 Munroe Lane. This reduced NTA to $0.322. I initially underwrote a 20% decline in valuation where I’d still make an acceptable return over 1-2 years. This is a decent asset in a slow and oversupplied leasing environment. As New Zealand comes out of its recession, leasing activity should pick up and they can eventually sell & liquidate. I expect another special dividend or ongoing dividend to be announced in FY25 results at the end of May,

Firm Capital Apartment REIT (TSE:FCA.UN) predominantly owns B/C grade multi-family in the USA directly and via JVs. 80% of their exposure is in the Sunbelt. Mentioned in Watchlist #1 as a potential liquidation. This is a very illiquid stock and is down 30% in April on no news. Last reported NAV was USD $6.59 and it closed on Thursday at $2.50. A 62% discount. Leverage is 36% down from 60% in 2023. Even if some of their assets are impaired, a 62% discount seems excessive. I wouldn’t be surprised if it was indiscriminate selling from someone having to liquidate due to what's been happening over the last few weeks. Q4 results should be out within a month and we will get an update on the strategic review. This increasing discount will put more pressure on board to formally announce a complete liquidation.

Universal Security Instruments (NYSEAMERICAN:UUU) is a manufacturer of smoke and carbon monoxide alarms. Mentioned in the Watchlist #4 as a potential liquidation. The vote took place on the 15th April. The resolution for the asset sale passed but the resolution for the liquidation failed by a margin of 2,122 shares (0.13% of votes needed!). Also on the 15th the company entered into a MOU with Milton Ault, the activist investor who was previously against the sale & liquidation, who agreed to vote in favour. The MOU also means he'll get his way with keeping the public shell and will look for a new investment. Shareholders will receive a comparable liquidation amount via a dividend.

Conclusion

Let me know what you think about these names?

Do you have any other interesting liquidations you own or on your watchlist?

I’m looking everyday for liquidations and wind downs. I will post another watchlist soon.

Disclaimer: The content in this write-up is for informational purposes only and should not be construed as financial or investment advice All opinions expressed are my own. Please do your own research or consult with a professional before making any investment decisions.

Disclosure: I, or members of my family, hold shares in NZE:APL, TSE:FCA, LON:ZYT and could potentially hold shares in any of the mentioned companies in the future.