For release on RNS: 07.00,
15 April 2024
NetScientific
plc
("NetScientific" or the "Company")
Respiratory disease
diagnostics company ProAxsis secures c.£1.8 million
investment
NetScientific Plc (AIM: NSCI), the
deep tech and life sciences VC investment group, announces that its
portfolio company ProAxsis Limited (ProAxsis) has
successfully closed a c.£1.8 million
investment (Investment).
The Investment was led by the
Company's wholly owned venture capital and corporate finance firm,
EMV Capital, syndicated from a cohort of private investors. The
Investment includes c.£211,000 from new investors, c.£36,000 from
the exercise of warrants (Warrants) granted to existing investors
in connection with convertible loan notes (CLNs), the conversion of the CLNs (and
interest thereon) valued in total at c.£455,000, and the conversion
of loans from NetScientific valued at c.£776,000. This additional
funding is complemented by ongoing non-dilutive funding from,
amongst other grants awarded, a recent c.£333,000 grant from
Innovate UK.
The new shares issued in connection
with the Investment (other than those resulting from the exercise
of the Warrants), are preferred shares (Preferred Shares) with a liquidation
preference multiple of 1.1 (Liquidation Preference). The new shares
issued in connection with the exercise of the Warrants are ordinary
shares. The two share classes rank pari passu save as regards the
Liquidation Preference.
In addition to the Investment,
ProAxsis has provided for up to a further £289,000 to be raised on
the same terms as the existing new investors in the Preferred
Shares (Follow-on
Investment).
Following the Investment, the
Company's direct stake in ProAxsis is 90.66 per cent, which equates
to a post-investment fair value of c.£8.0 million, an increase of
c.229 per cent. from the £3.5 million reported as at 30 September
2023. In addition, following the introduction of investors by EMV
Capital, the NetScientific capital under advisory with ProAxsis is
8.81% of the fully diluted share capital.
The proceeds of the Investment (and
any Follow-on Investment) will, inter alia, support ProAxsis in the
development of its Patient Point of Care product range, and its
working capital requirements, as well as its endeavours to attract
strategic partners.
Dr
Ilian Iliev, CEO of NetScientific, and Investor Director of
ProAxsis said:
"We welcome this additional funding for ProAxsis. Complemented
by the CLNs and Innovate UK grant, these investments demonstrate
strong financial support as ProAxsis develops its offering to the
respiratory disease market, whilst it explores options for a
potential sale to a new strategic owner.
"EMV Capital securing this third party funding is a further
example of our capital efficient investment model, allowing
ProAxsis to grow without reliance upon the NetScientific balance
sheet."
The person responsible for arranging
the release of this announcement on behalf of the Company
is Edward Hooper, General Counsel and Executive Director of
the Company.
THIS ANNOUNCEMENT CONTAINS INSIDE
INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE UK VERSION OF REGULATION (EU) NO 596/2014 WHICH IS
PART OF UK LAW BY VIRTUE OF THE EUROPEAN
UNION (WITHDRAWAL) ACT 2018, AS AMENDED. UPON THE PUBLICATION
OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC
DOMAIN.
-Ends-
NetScientific
|
NetScientific
|
|
|
Ilian Iliev, CEO
|
Via Belvedere
Communications
|
|
|
|
|
Panmure Gordon (UK) Limited (NOMAD and
Broker)
|
|
|
Emma Earl / Freddy Crossley / Will
Goode / Mark Rogers (Corporate Finance)
Rupert Dearden (Corporate
Broking)
|
+44 (0)20 7886 2500
|
|
|
|
|
Belvedere Communications
John West / Llewellyn Angus / Lily
Pearce
|
+44 (0)20 7653 8702
|
About NetScientific
NetScientific plc (AIM: NSCI) is a
deep tech and life sciences VC investment group with an
international portfolio of innovative companies.
NetScientific identifies, invests
in, and builds high growth companies in the UK and internationally.
The company adds value through the proactive management of its
portfolio, progressing to key value inflection points, and
delivering investment returns through partial or full liquidity
events.
NetScientific differentiates itself
by employing a capital-efficient investment approach, making
judicial use of its balance sheet and syndicating investments
through its wholly owned VC subsidiary, EMV Capital. The group
secures a mixture of direct equity stakes and carried interest
stakes in its portfolio of companies, creating a lean structure
that can support a large portfolio.
NetScientific is headquartered in
London, United Kingdom, and is admitted to trading on AIM, a market
operated by the London Stock Exchange.
www.netscientific.net
About ProAxsis
ProAxsis Limited is a global
diagnostics company, based in Northern Ireland, with a specific
focus on active protease biomarkers. The company currently
commercialises activity-based immunoassays targeting Neutrophil
Elastase (NE) and Proteinase 3, as biomarkers of lung infection and
inflammation in chronic respiratory diseases such as COPD, cystic
fibrosis and bronchiectasis.
This technology has been translated
into a point-of-care test (NEATstik®), to enable ongoing monitoring
of active NE levels. Recently published data has shown that
measuring active NE levels using NEATstik® enables identification
of patients with airway bacterial infection and those patients at
highest risk of suffering pulmonary exacerbations over the
subsequent 12 months.
In addition to proteases, the
company also has significant expertise in the measurement of other
inflammatory biomarkers, including IL-6, IL-8 and
TNF-alpha.
Aside from the provision of assays,
ProAxsis provides clinical services at its purpose-built laboratory
facility in Belfast and supports pharmaceutical company-sponsored
Phase I, II and III clinical trials.
www.proaxsis.com
