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Highlights:

  • Crystal Amber Fund receives GBP 40.67 million from De La Rue plc investment realisation
  • CE Mark approval allows Morphic Medical to begin RESET® sales in Europe
  • The Fund plans further investment in MMI and reviews use of De La Rue proceeds

Crystal Amber Fund Limited (LSE:CRS) has provided an update on its portfolio investments, including cash proceeds from the completed acquisition of De La Rue plc and ongoing developments at its core investment, Morphic Medical Inc. (MMI). The Fund also outlined its strategic considerations, including the potential return of capital to shareholders and the evaluation of its broader investment approach. Crystal Amber confirmed that it has now received approximately GBP 18 million in final cash proceeds following the completion of the takeover of De La Rue plc, which became effective on 2 July 2025 through a Scheme of Arrangement. This brings the total proceeds received from the investment in De La Rue securities to GBP 40.67 million. The Fund’s board is currently assessing its capital allocation strategy, including the use of these proceeds. Options under consideration include expanding the existing share buyback programme and potential capital distributions to shareholders. No final decision has been announced, and the board is also engaging with shareholders and advisers regarding the Fund’s longer-term strategy and structure.

The Fund’s key remaining asset, MMI, has made progress following the receipt of CE Mark approval for its flagship product, RESET®, a non-surgical weight-loss device. MMI has commenced sales in Germany, with plans to extend commercial availability to other European Union countries and jurisdictions that recognise CE certification. The target market across Europe is estimated at 93 million patients. In the UK, regulatory approval from the MHRA is expected in the coming weeks, which would allow RESET® to be sold domestically. MMI estimates that around 1.6 million UK patients could potentially benefit from the device. According to 2023 data from the UK Government and NHS England, obesity is estimated to cost the NHS GBP 6.5 billion annually, with wider economic costs reaching GBP 27 billion.

The device, which replicates the effects of gastric bypass surgery through a temporary and minimally invasive implant, is also undergoing clinical trials in the US. Recruitment for the FDA fast track approved pivotal study is ongoing, with a potential FDA approval timeline of late 2027. MMI anticipates that CE Mark status will support faster recruitment for the trial. To support its operational and regulatory milestones, MMI is currently in discussions with a number of potential investors. One S&P 500-listed healthcare company has expressed interest in an initial investment of GBP 5 million to GBP 10 million, although no binding agreement has been reached. MMI believes this investment may be at a premium to the Fund’s current valuation of the asset.

Crystal Amber has invested GBP 5.15 million into MMI in 2025 at a price of GBP 0.48 per share, and anticipates a further investment of up to GBP 1.5 million in the near term. The Fund remains open to additional participation alongside cornerstone investors if appropriate. As of 31 December 2024, the Fund valued its holding in MMI at GBP 60.6 million, owning approximately 96.7% of MMI’s combined issued common and preference shares. The Fund continues to manage and explore value realisation strategies for its other holdings in Sigma Broking, Allied Minds, and Sutton Harbour plc.

Crystal Amber is undertaking a strategic review, consulting shareholders and advisers on the Fund’s future direction and structure. The focus remains on optimising value realisation across its investment portfolio while considering timely shareholder returns. Trustnet performance data shows that the Fund has delivered shareholder returns of 72.2% over one year, 118.5% over three years, and 267.4% over five years, compared with the UK Smaller Companies Investment Trust Index benchmarks of 3%, 24.4%, and 69.3% respectively.

CRS is trading at 1.74% higher at GBX 157.70 per share as on 18 July 2025.