We took the bold decision to invest $1 million in the shares of an unquoted company called Juvenescence about 18 months ago. The reason we did so was because I have been a follower of one of its founders, Jim Mellon, for many years.
Jim is a visionary who has an uncanny knack of spotting early money trends and profiting from them. Be it commodities, precious metals, biotechnology, property, equities or longevity to name but a few of his favourite investment sectors, Jim will have a very well-informed opinion on it.
Jim is an avid reader as well as a writer. He has written a number of books on his areas of interest. He wrote a book called Wake Up in 2005 with his co-author Al Chalabi in which he predicted the global financial crisis which then occurred in 2008.
Juvenescence is a longevity company which specialises in prolonging human life. Jim has written a book called Juvenescence. He has predicted that longevity will become the largest investment sector in history purely because everyone in the world wants to live longer and healthier lives.
It is predicted that average life expectancy will rise to 120 over the next 20 years due to the many advances in science and medicine currently being created. Virtually all deaths from illness will eventually be eradicated meaning that the main cause of death will be by accident or until death naturally occurs in later life.
I have unashamedly extracted the following from Juvenescence’s website.
Our founder’s vision
Healthcare as you know it is about to see as much change in the next 10 years as there has been in the last 100 years, and those years were pretty remarkable. This extraordinary transformation will be available to everyone globally.
There are three pillars to this change. Thefirstis we are entering a new moment in medical history where we are able to modify aging based on the work by brilliant scientists and their newfound insights into how cells age, the role of genes and proteins in human health and aging. For the first time in history, these same scientists have begun to understand how the body regenerates itself, allowing them to help stimulate your body to regenerate healthier tissues and even organs.
Thesecond pillaris a complete change in how healthcare is being delivered from the hospitals, doctors, and the pharmaceutical industry through to the insurance companies or national healthcare. Today, all of these groups, their training, and business models are based on diagnosing a pathology or disease after you get sick and then create therapies to treat or potentially cure that disease. The new model that we are pursuing at Juvenescence is developing therapies thatpreventthese same pathologies and disease states, shifting away from the sick-treat paradigm for good.
Thefinal pillaris unprecedented in biotech or pharmaceuticals. A company like Juvenescence will seek to democratize these health breakthroughs for everyone by harnessing clinically-validated but more economically available therapies, such as supplements, and leveraging social media to build awareness directly with the people who would most benefit from them.We see the emergence of a new healthcare approach where science fiction becomes science. This new approach will empower people to make the appropriate lifestyle changes and take advantage of supplements and Rx therapies that will allow them to live longer and healthier. We are building Juvenescence to be an innovative biotech longevity company focused on all three of these pillars that will lead to one of the most exciting, disruptive, and sustainable health companies for decades to come.
Dr. Gregory Bailey, MD, Chief Executive Officer and co-founder of Juvenescence
We bought the shares at a price of $24.70 per share in an earlier funding round. I believe the true value to be higher than $24.70. For the purpose of conservatism and because there is not currently a market for the shares as they are not yet listed on a stock exchange the valuation remains stated at $24.70.
The company has recently announced that it is planning a stock market flotation in the next 6-12 months barring another stock market crash or other unforeseen event in the meantime. The floatation has already been postponed at least 12 months due to the coronavirus pandemic. If the IPO proceeds as expected the company’s shares are expected to rise in value significantly as the company’s bankers have already advised Juvenescence to price the shares at a higher level than $24.70. Of course, none of this is guaranteed and it is all dependent on a number of factors which are unpredictable.
Nonetheless, I am confident that the share price on flotation will be much higher than the price currently quoted in the share’s valuation in our fund of $24.70. It appears to be more a matter of when, not if, the company’s shares float on a stock exchange and the share price fully reflects the true valuation of the company. We are expecting big things from this company so watch this space. You know it makes sense*.
*The Financial Conduct Authority does not regulate Cashflow Modelling. The value of investments and the income from them may fall as well as rise. Consequently, you may not receive back the amount originally invested. This communication is for general information only and should neither be construed as constituting advice nor be relied upon in making any investment decisions nor an invitation to consider or subscribe for shares in the CCM Intelligent Wealth Fund. You are recommended to seek competent professional advice before taking any action. Any statements concerning the tax treatment of products and their benefits are based on our understanding of current tax law and HM Revenue and Customs’ practice. Levels and bases of tax relief are subject to change.
