Since 3 January 2017, the company’s share price has more than halved, plunging from 470p per share to 220.2p, at the time of writing.
And the company’s co-founder and CEO Chris Silva stepped down mid-March. At the time, Silva was quoted as saying “now is the right time in the company’s development for new leadership.”
He was swiftly replaced by non-executive director Jill Smith who remains the interim CEO.
Allied Minds issued a statement before the start of trading on Wednesday morning, confirming its plans to undergo a major restructuring effort and the reallocation of capital and resources.
As news of the firm’s overhaul plans emerged, its shares had lost 15.63% of their value in a matter of hours.
Allied Minds also announced on Wednesday that it would discontinue funding seven of its subsidiaries, including Biotectix and Novare Pharmaeceuticals, thereby freeing up $14m of capital.
Combined, the discontinued subsidiaries will deal a $146.6m blow to the Allied Minds’ Group Subsidiary Ownership Adjusted Value.
Smith said the “measures are a necessary step in refocusing the company on the areas where we have most potential.”
On Wednesday, Woodford did not distance himself from Allied Minds, saying his firm remain “strong supporters of the intellectual property commercialisation sector.”
He stated: “The businesses we have backed have diverse portfolios of young, disruptive businesses with significant long-term potential. Short-term noise and share price movement can miss the longer-term opportunity.”
“The announcement from Allied Minds this morning should be seen in that context,” he continued.
“By crystallising value in businesses that are not demonstrating the progress hoped for, Allied Minds can focus more aggressively on the companies that are rapidly progressing towards their commercial goals and reallocate capital towards new ideas. In this respect, I believe the strategy is sensible and will help to accelerate the creation of long-term value for shareholders.”
