DeepTech Recycling: Fundraising, Business Update
31/05/2024 07:00
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RNS Number : 5445Q NetScientific PLC 31 May 2024
NetScientific plc
("NetScientific", the "Group" or the "Company")
DeepTech Recycling: Fundraising and Business Update
NetScientific plc (AIM: NSCI), the deep tech and life sciences VC investment
group, announces that its portfolio company, DeepTech Recycling Limited
("Deeptech Recycling"), a plastic recycling technology business offering an
innovative solution to the environmental challenges of plastic pollution, has
successfully closed a £0.8 million fundraising ("Fundraising"), with the
combined investment amount which includes a prior close being £2.1 million
(further details below).
Fundraising
The Fundraising follows a first closing of £1.0 million via an advanced
subscription agreement ("ASA") that was completed in December 2023 and a
second close of the ASA of £0.3 million shortly thereafter. The investment
includes the aforementioned advance subscription amounts. As outlined in the
announcement of 1 December 2023, the proceeds of the Fundraising will, inter
alia, continue to 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 Fundraising was led and syndicated by EMV Capital, the Company's wholly
owned venture capital and corporate finance firm, and alongside new investors
includes further investment from EMV Capital's EMVC Evergreen EIS Fund.
In December 2022, DeepTech Recycling was set up as a special purpose vehicle
to acquire the majority of the assets of Recycling Technologies from the
administrator, with NetScientific acquiring a 30% stake at near nil value.
Following the Fundraising, the Company's direct stake in DeepTech Recycling
will be 21.2% on a fully diluted basis. This equates to a post-investment fair
value uplift of £1.8 million. The capital under advisory of EMV Capital in
respect of investors introduced by it to DeepTech Recycling is £2.1 million,
representing 29.3% of the captable on a fully diluted basis.
Business update
DeepTech Recycling has developed a chemical recycling solution for different
types of plastic waste. The company is committed to making plastic sustainable
and supporting the global drive towards a circular economy for plastics
through the chemical recycling of plastic waste.
Since the fundraise announced on 1 December 2023, DeepTech Recycling has made
significant progress, including:
· The signing of a Memorandum of Understanding to develop a
commercial plastics recycling facility in the UK, with a purchase order
received for the first stage of the facility development project.
· For a second project, the identification by DeepTech Recycling of a
shortlist of sites and strategic partners for a 7,000-tonne per annum
project.
· The progression of an appointment process of a FEED/EPC contractor,
from a high-profile shortlist.
· The enhancement of DeepTech Recycling's team through strategic
hires of new employees. The company has also welcomed Jonathan Seville,
previously President of the Institution of Chemical Engineers and Executive
Dean of Engineering and Physical Sciences at the University of Surrey, as
a Technical Adviser.
· New premises have been secured and set up with labs and a testing
plant in Oxfordshire, which will provide the crucial infrastructure to
ensure focus on the technology development.
Dr Ilian Iliev, CEO of NetScientific and Interim Chair of DeepTech Recycling,
commented:
"Marvine and his team have effectively leveraged the recent fundraise,
accelerating DeepTech Recycling through critical development phases. We are
excited to support their progress in major projects in the UK and
internationally. This journey perfectly exemplifies our capital efficient and
value-creation strategy, turning a once undervalued and distressed asset,
effectively valued at zero in 2022, into a thriving venture, and providing
NetScientific shareholders with a significant and valuable stake at minimal
cost."
Marvine Besong, Managing Director and CTO of DeepTech Recycling, added:
"EMV Capital has provided a unique support package, helping our team to
restart and accelerate progress with DeepTech Recycling, and to access a
supportive investor base that is committed to ESG and real impact in the
plastic waste management space. It is only 1.5 years since the start of the
company, we are now poised to take on exciting projects in the UK and
internationally, driving sustainability in plastics and transforming waste
into high-value resources. The future looks promising for DeepTech Recycling."
The person responsible for arranging the release of this announcement on
behalf of the Company is Ilian Iliev, CEO 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
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-Ends-
For more information, please contact:
NetScientific
Ilian Iliev, CEO Via Belvedere Communications
Panmure Gordon (UK) Limited (NOMAD and Broker)
Emma Earl / Will Goode / Freddy Crossley / Mark Rogers (Corporate Finance) +44 (0)20 7886 2500
Rupert Dearden (Corporate Broking)
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 (http://www.netscientific.net)
About Deeptech Recycling
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/ (https://www.deeptech-recycling.co.uk/)
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