TIDMNSCI
RNS Number : 4115S
NetScientific PLC
06 November 2023
For release: 07.00, 6 November 2023
NetScientific plc
("NetScientific" or the "Company")
Heat pump specialist Ventive secures c.GBP900,000 investment
NetScientific Plc (AIM: NSCI), the deep tech and life sciences
VC investment group, announces that its portfolio company Ventive
has successfully closed a c.GBP900,000 investment
("Investment").
The Investment included GBP316,000 from existing shareholders
and the conversion of two existing convertible loans (and interest
thereon) valued at c.GBP600,000. This is the first closing as part
of Ventive's proposed GBP1 million to GBP1.5 million investment
programme, with further new investment anticipated prior to 30
April 2024 in one or more additional closings.
This additional funding is complemented by ongoing non-dilutive
funding from, amongst other grants awarded, a GBP1.5 million BEIS
grant secured in 2022, as well as a recently awarded GBP100,000 UK
Government grant focused on 'net zero HVAC' systems.
The Investment was led and syndicated by EMV Capital, the
Company's wholly owned venture capital and corporate finance firm.
It follows the initial investment led and syndicated by EMV Capital
that was announced (via RNS Reach) on 20 October 2022, where EMV
Capital secured an initial c.16% stake in partial settlement of its
fees. Since that initial investment, the value creation team of EMV
Capital has worked closely with Ventive to stabilise and develop
its business plan and product range.
The proceeds of the Investment will support the completion of
the design and test phase and factory build for Ventive's modular
heat pumps, further enhancements to its passive air ventilation
product range, and build-up of its marketing and sales capacity to
drive sales of its existing product range. The Ventive balance
sheet is also streamlined following the conversion of the
convertible loans.
Following completion of the Investment, the total equity holding
of the NetScientific group in Ventive is 11.0% on a fully diluted
basis, which includes the partial settlement of its corporate
finance fees relating to the Investment. This holding equates to a
post-investment fair value of GBP893,000, a substantial increase of
1,617% from the GBP52,000 reported as at 31 December 2022. In
addition, following the introduction of investors to Ventive by EMV
Capital under its capital efficient model, NetScientific's capital
under advisory with Ventive is now 23.8% of the fully diluted share
capital.
Ventive designs and manufactures intelligent heating and
ventilation solutions to make buildings healthy, comfortable,
efficient, and affordable. Its products address two high priority
markets segments: air quality and sustainable heating.
Ventive's passive air ventilation system has been delivered to
over 30 schools and five leisure centres, achieving excellent air
quality results. Its novel heat pump product, which is in advanced
stages of development, is a comprehensive solution for residential
applications, with a unique modular design and a novel thermal
store. Momentum for the business is underpinned by significant
regulatory changes, increasing energy prices, and climate change
policies.
Rob Morrison, Managing Director of Ventive , said:
"This investment is a strong endorsement of our work, and
recognition of Ventive as a pioneer in the design of naturally
intelligent ventilation systems to deliver fresh air at minimal
energy cost. Since heat pumps are powered by electricity, a
comparatively easy source of energy to decarbonise, they can play a
prominent role in bringing down the environmental footprint of
homes and other buildings.
" EMV Capital has provided invaluable support to our fundraising
efforts and growth strategy planning, and we are grateful to our
shareholders for their continued support in a tough macro-economic
climate . "
Ed Hooper, Executive Director of NetScientific and Investment
Director at Ventive, added :
" We are pleased to see Ventive close out the first tranche of
this important fundraising programme, which includes both fresh
investment and the conversion of existing convertible loans. This
transaction again demonstrates the strength of our capital
efficient investment model and the successful execution of our
strategy to increase the net asset value and fair value of our
business by progressing cohort portfolio companies through value
creation stages, obtaining third party investment, and providing
proactive portfolio management.
"We believe that this fundraising positions Ventive well for
further growth and we look forward to continuing to work closely
with Ventive in this rapidly growing high-impact market
segment."
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-
For more information, please contact:
NetScientific
Ilian Iliev, CEO Via Belvedere Communications
Panmure Gordon (UK) Limited (NOMAD and
Broker)
Emma Earl / Freddy Crossley / Mark Rogers
(Corporate Finance)
Rupert Dearden (Corporate Broking) +44 (0)20 7886 2500
Belvedere Communications
John West / Llew 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-light
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 Ventive
Ventive designs and manufactures innovative intelligent building
service systems in the UK, with an aim to create comfort without
costing the Earth. From ventilation to heating and cooling, its
ambitious team has already commercialised a few technologies and is
well positioned to address the complexities of the Energy
Transition with its new range of all-in-one home energy systems.
Ventive has the ambition to provide a healthy, comfortable and safe
indoor environment intelligently and at a reasonable cost, also
opening the opportunity to help demand for energy management on an
aggregated scale.
Ventive was founded by serial entrepreneur and architect Tom
Lipinski with a vision to improve the comfort and sustainability of
residential built environment.
https://ventive.co.uk/
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END
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