REG - Frontier IP Group - Portfolio news – CamGraPhIC loan facility

Frontier IPAnnouncement

24/07/2023 07:00

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RNS Number : 8788G  Frontier IP Group plc  24 July 2023

RNS

AIM: FIPP

24 July 2023

 

Frontier IP Group Plc

("Frontier IP" or the "Group")

 

Portfolio news - CamGraPhIC loan facility of up to £1.5 million

 

Frontier IP, a specialist in commercialising intellectual property, announces
that its portfolio company, CamGraPhIC Limited ("CamGraphIC" or the "Company")
has put in place a new loan facility which will provide funding of up to £1.5
million (the "Loan Notes") to enable CamGraphIC to accelerate the development
of its growth.

 

A total of £1.043 million Loan Notes have been subscribed for under this the
new loan note instrument. Frontier IP has subscribed for £1.0 million of Loan
Notes pursuant to the loan facility comprising amounts that have been advanced
by Frontier IP to CamGraphIC between 24 February 2023 and 21 July 2023.

 

The key terms of the Loan Notes are:

 

-      up to £1,500,000 fixed rate 8% unsecured loan notes can be issued
in the Company;

-      the Loan Notes will bear interest at a rate of 8% per annum from
the date of issue;

-      the Loan Notes are redeemable by the Company (so far as not
converted) on the date which is 12 months after completion of a fundraising in
which the Company raises new equity of £1 million or more;

-      the Loan Notes may be converted on a fundraising of any amount at
the option of the noteholder and with the agreement of the Company; and

-      if the Loan Notes are converted, the Company will be required to
issue each noteholder with warrants to subscribe for new shares in the Company
equivalent to 20% of the Loan Notes at the price at which the loan notes
converted.

 

CamGraphIC is the Group's second graphene spin out from the University of
Cambridge. The Company was formed to develop graphene-based photonics for
high-speed data and telecommunications. Graphene photonics is seen by the
Company's industrial partners as a key enabler for 5G technologies and has
potential applications in a range of other sectors.

 

Separate to the loan facility detailed above, Frontier IP has also previously:
(i) advanced amounts totalling £210,000 to CamGraphIC under previous loan
agreements entered into in 2019 and 2020 to provide working capital for the
Company; and (ii) subscribed for a total of £1.018 million loan notes under a
loan instrument originally issued by CamGraphIC in June 2021, details of which
were announced by Frontier IP on 8 July 2021.

 

As a consequence, as at the date of this announcement the total amount
advanced by Frontier IP to CamGraphIC is £2.23 million. In addition, Frontier
IP holds a 20.8 per cent. equity stake in CamGraphIC.

 

Proceeds from the funding will be used by CamGraphIC to continue development
and scale up of its technology, as the Company works with a number of
potential customers, including multinationals in the semiconductor and
telecommunications sectors.  In addition, CamGraPhIC is already providing
revenue generating services to several major government and commercial
organisations both commercially and via grant funded programmes.

 

 

ENQUIRIES

 

 Frontier IP Group Plc                                                  T: 020 3968 7815
 Neil Crabb, Chief Executive                                            neil@frontierip.co.uk

 Andrew Johnson, Communications & Investor Relations                    M: 07464 546 025

 Company website: www.frontierip.co.uk (http://www.frontierip.co.uk/)

 Allenby Capital Limited (Nominated Adviser)                            T: 0203 328 5656

 Nick Athanas / George Payne

 Singer Capital Markets (Broker)                                        T: 0207 496 3000

 Sandy Fraser / Harry Gooden / George Tzimas

 

ABOUT FRONTIER IP

Frontier IP unites science and commerce by identifying strong intellectual
property and accelerating its development through a range of commercialisation
services. A critical part of the Group's work is involving relevant industry
partners at an early stage of development to ensure technology meets real
world demands and needs.

 

The Group looks to build and grow a portfolio of equity stakes and licence
income by taking an active involvement in spin-out companies, including
support for fund raising and collaboration with relevant industry partners at
an early stage of development.

 

 

 

 

 

 

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