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Woodford backs fund raise by IP group Netscientific

Published: 03:25 29 Mar 2018 EDT

blood phials
Diagnostic group Vortex is one of the core companies

Woodford Investment Management has put up half of a £5mln fundraising by intellectual property group NetScientific PLC (LON:NSCI).

A placing at 52.5p will raise £5mln, with the possibility of a further £1mln depending on demand.

Woodford has subscribed for 5.7mln new shares. The fund manager already owns 45% of the IP group and as the new shares will take its stake higher, a whitewash waiver is being applied.

READ: Purplebricks boosts Neil Woodford's Patient Capital Trust shares in first half

Netscientific has a core portfolio of five companies and will use the additional funding to accelerate either the float or sale of one or more of these.

Francois Martelet, chief executive, said: “In recent months several of our portfolio companies have reached the commercialisation stage, and we are hoping to move the remaining ones in our portfolio towards commercialisation in the next 18-24 months.

"The additional finance we have raised today will allow us to continue to advance development of investment into our portfolio of companies to provide support at this critical time.

“We are expecting further consolidation in the IP sector and expect to be a significant player in this process.”

Results for 2017 showed an after-tax loss of £9.4mln, with cash of £6.9mln. after a spend of £10.7mln (£12.9mln) over the year.

Martelet added the company does not propose to invest in new opportunities until at least some of its portfolio companies have completed their next external fundraising rounds.

Series A financings are planned for Glycotest in this half year and for Vortex and Wanda in late 2018.

 

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