TIDMNSCI
RNS Number : 3073V
NetScientific PLC
01 December 2023
For release on RNS: 07.00, 1 December 2023
NetScientific plc
("NetScientific" or the "Company")
Plastic recycling technology company DeepTech Recycling secures
GBP1 million investment
NetScientific Plc (AIM: NSCI), the deep tech and life sciences
VC investment group, announces that its portfolio company DeepTech
Recycling Limited ("Deeptech Recycling") has successfully closed a
GBP1 million fundraising ("Fundraising").
DeepTech Recycling is a UK deep tech company born out of a
global environmental crisis caused by insufficient and
unsustainable management of plastic waste. Its mission is to make
plastic sustainable and support the critical global drive towards a
circular economy for plastics through chemical recycling of plastic
waste. DeepTech Recycling has a unique, patented and proven
technology platform, which was developed over more than 10 years of
structured and accelerated development and commercialisation, and
offers unique and innovative solutions to the environmental
challenges of plastic pollution.
The Fundraising, carried out via an advance subscription
agreement, constitutes the first closing of a target investment
programme of c.GBP3 million, with further investment anticipated
within the next six months. The Fundraising was led and syndicated
by EMV Capital, the Company's wholly owned venture capital and
corporate finance firm.
In December 2022, DeepTech Recycling, in which the NetScientific
group holds a 30 per cent. stake, acquired the majority of assets
of Recycling Technologies Limited out of administration. Since the
acquisition, the value creation team of EMV Capital has worked
closely with DeepTech Recycling to consolidate assets and IP,
embark on further research and development programmes, and start on
the commercial roadmap of the business.
The proceeds of the Fundraising will, inter alia, support
DeepTech Recycling in the completion of a development phase for its
pilot plant, development and adaption of its targeted technology
and licensing strategy, as well as the set-up of its operating base
and development of its core team.
The advance subscription funds will only be applied for shares
in the capital of Deeptech Recycling upon, inter alia, Deeptech
Recycling raising at least GBP1.5 million (or such lower amount as
may be agreed between the parties) within six months of the first
closing of the Fundraising. Such subscription shares are
anticipated to be priced at a 20 per cent. discount to the issue
price of such GBP1.5 million fundraising, with an agreed valuation
cap of GBP6 million. Given the subscription price is not yet known,
and no new shares in DeepTech Recycling have yet been issued,
following completion of the first closing of the Fundraising, the
total equity holding of NetScientific in DeepTech Recycling remains
at 30 per cent. The capital under advisory of EMV Capital in
respect of investors introduced by it to DeepTech Recycling has
increased by GBP1 million.
Related Party Transaction
EMV Capital has agreed with DeepTech Recycling terms of
engagement for advising on the Fundraising and the continued
investment programme, including the provision of value creation
services over up to a three year term ("Engagement Terms").
Pursuant to the Engagement Terms, EMV Capital will charge customary
fees to DeepTech Recycling, including a commission of 6 per cent.
of investment monies introduced by EMV Capital to DeepTech
Recycling, and annual fees for value creation and management
support services anticipated to be c.GBP100,000 for an initial 12
month period. Such fees may, at the election of EMV Capital, be
converted into shares in the capital of DeepTech Recycling at a 25
per cent. discount to the prevailing issue price of such
shares.
DeepTech Recycling is currently owned as to 70 per cent. of its
shares by AB Group Limited, a company owned by Melvin Lawson who is
a substantial shareholder of NetScientific. As such the Engagement
Terms constitute a related party transaction under Rule 13 of the
AIM Rules for Companies. The Directors, excluding Dr Ilian Iliev by
reason of his concert party relationship with Melvin Lawson,
consider, having consulted with the Company's nominated adviser,
Panmure Gordon (UK) Limited, that the Engagement Terms are fair and
reasonable in so far as shareholders of NetScientific are
concerned.
Marvine Besong, Managing Director and CTO of DeepTech Recycling,
said:
"This investment represents a significant vote of confidence in
our mission to transform non-recyclable plastic waste into high
value oil products, a process that is a key lever in achieving
substantial reductions in plastic waste disposal and greenhouse gas
emissions. The oil products generated can be used by the
petrochemical industry as the feedstock for producing
virgin-quality plastics , further re-enforcing our passionate
support for the drive towards a circular economy.
" As the business continues to make strong progress, we will
leverage this new capital injection to scale up our operations and
accelerate the realisation of our robust pipeline of opportunities.
EMV Capital has played a key role in facilitating our fundraising
initiatives, as well as the relaunch of the business. We are
grateful for the insightful contributions of their value creation
team."
Dr Ilian Iliev, CEO of NetScientific, and Chair and Investment
Director of DeepTech Recycling added:
"We are pleased with the outcome of this pivotal fundraising for
DeepTech Recycling. The company's innovative chemical recycling
platform can be integrated and scaled into the existing waste
management value chain internationally. It is a balanced approach,
addressing the global plastic waste crisis, while recognising the
importance of plastic in the modern economy. We look forward to
continuing to work with DeepTech Recycling as it actively
contributes to a cleaner, more sustainable future.
"This transaction is a further example of our capital efficient
investment model, where the NetScientific group was able to secure
a 30 per cent. stake for nominal value. In turn our subsidiary EMV
Capital was able to secure investor support for the company's
growth strategy. We look forward to reporting on the company's
fundraising programme, and the impact on the net asset value and
fair value of our shareholding, upon the company issuing new shares
in due course."
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 / 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-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 DeepTech Recycling Limited
DeepTech Recycling is a UK-based technology company born out of
a global environmental crisis caused by insufficient and
unsustainable management of plastic waste. The company's mission is
to make plastic sustainable and support the critical global drive
towards a circular economy for plastics.
DeepTech Recycling has a unique, patented and demonstrated
technology platform, which was developed over more than 10 years of
structured and accelerated development and commercialisation, and
offers a unique innovative solution to the environmental challenges
of plastic pollution.
The technology converts currently unrecyclable plastic waste,
that would normally be landfilled or incinerated, into oil that can
be used by the petrochemical industry as the feedstock for
producing virgin quality plastic.
https://www.deeptech-recycling.co.uk/
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FURFBLLXXFLEFBB
(END) Dow Jones Newswires
December 01, 2023 02:00 ET (07:00 GMT)
Netscientific (LSE:NSCI)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
Netscientific (LSE:NSCI)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024
