KEDM Lite Vol. 20

This week’s additions and highlights

1. SPIN-OFFS

• Mobility Global (MBGL-W US). Mobility Global began trading when‑issued, and we’re keeping an eye on this one. The stock is getting quite some attention (Fintwit / VIC / Substack), but let’s see if we’ll see some (forced) selling given its small size, lack of overlap with SPGI and no direct comps. The business is Carfax (65% of revenue) plus some interesting B2B assets (Mastermind, Polk, Market Scan), with 80%+ subscription revenue, mid‑single‑digit core growth, and 7.5–10% organic growth targets.

2. STRATEGIC ALTERNATIVES & REVIEWS

(Potential take-outs, asset sales, M&A, etc.)

• Neuphoria Therapeutics (NEUP US). Neuphoria initiated a strategic review of its portfolio and operations after its AFFIRM-1 Phase 3 trial of BNC210 for social anxiety disorder failed to meet its primary endpoint. The shares dropped significantly on the announcement; it’s interesting to Lynx1 aggressively buying shares on the open market, for a total of 37%. What do they see?

  UPDATE (June 30, 2026) Scancell is in advanced discussions to acquire Neuphoria in an all‑share reverse‑merger. Scancell is also pursuing equity and debt financing to fund a Phase 3 trial for its lead melanoma asset iSCIB1+, which has shown meaningful Phase 2 monotherapy and combo efficacy. The company says the deal won’t qualify as an AIM reverse takeover. Interesting for specialists.

• Compass Diversified (CODI US). For those with a strong stomach. Compass collapsed (ao due to) fraud at subsidiary Lugano, forcing the company to withdraw three years of financials and suspend its dividend. The remaining businesses appear to do well (as far as we can assess) and continue to generate a healthy level of profitability. There’s the issue of the restatements, and some leverage. That being said, given what seems like a rather isolated fraud event, the reaction appears too strong (but we get it). UPDATE (March 31, 2026) So far it seems we got it right at the bottom, and the news keeps flowing. CODI is selling its Sterno’s food‑service unit for $292.5m. The business made about $30m of EBITDA last year, so CODI is getting a solid multiple. The proceeds will be used to pay down debt. CODI is keeping the higher‑margin home‑fragrance piece. Debt is coming down and expect more asset sales. Also, ADW Cap increased its stake to ~10%.

  UPDATE (June 30, 2026) CODI seems close to resolving the Lugano mess, recently reaching a settlement and clearing the way for the liquidation plan. With this thing now de‑risked, CODI can now ‘fully refocus on deleveraging, improving subsidiary performance and closing the gap between its trading price and intrinsic value’. A reminder that ADW Cap (>19%) has been pushing for a liquidation here, saying that a wind‑down could unlock over $26 p/s, well above the current price. There’s also a new CEO, and an upcoming review of the Management Services Agreement soon…