Mercia announces two new direct investments
18/10/2022 07:00
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RNS Number : 1736D Mercia Asset Management PLC 18 October 2022
RNS 18 October 2022
Mercia Asset Management PLC
("Mercia", the "Group" or the "Company")
Mercia announces two new direct investments - Axis Spine and Nova Pangaea
Mercia Asset Management PLC (AIM: MERC), the proactive, regionally focused
specialist asset manager with c.£959million of assets under management, is
pleased to announce new direct investments into Axis Spine Technologies Ltd
("Axis Spine") and Nova Pangaea Technologies Ltd ("Nova Pangaea").
Axis Spine
The investment into Axis Spine comes as part of a £10.8million funding round.
Mercia has made a direct investment of £3.0million, alongside £3.8million
from Mercia's managed funds. MedTex Ventures, a US-based venture capital firm
focused on the medical device industry, has invested £3.0million with the
remaining £1.0million coming from other external investors. Mercia's managed
funds first invested in Axis Spine in 2017.
Following this investment, Mercia holds a 11.7% fully diluted direct equity
stake in Axis Spine, with funds managed by Mercia holding a further 33.6%
fully diluted equity stake.
Axis Spine is a Med Tech business delivering spinal implants. Axis has a
highly differentiated platform of modular implants, designed to address the
increasingly recognised and unmet clinical need of cage subsidence. This
technology promises to not only reduce post operative spinal segment collapse,
but also improve spinal alignment in patients suffering chronic back pain and
spinal deformity.
Insertion of Axis' proprietary modular cages requires much less force than
conventional implants, they are slimmer and have a wider footprint, thereby
reducing the risk of damage to vertebral segment endplates and thus the loss
of alignment that impacts one in three patients.
Nova Pangaea
The investment into Nova Pangaea is part of a £5.3million funding round.
Mercia has made an initial direct investment of £2.3million via a convertible
loan, alongside £1.0million from Mercia's Northern Powerhouse Investment Fund
("NPIF") and a further £2.0million from co-investors.
Nova Pangaea is a Clean Tech business focused on creating biofuels and biochar
to address some of the most pressing climate concerns of today. Led by CEO
Sarah Ellerby, Nova Pangaea provides a patented process called REFNOVA® that
converts woody and agricultural residues into high-value sustainable products
that are used to manufacture Sustainable Aviation Fuel ("SAF") and a range of
biochemicals. The process also produces Biochar, which is crucial for carbon
dioxide removal and soil enhancement.
Mark Payton, Chief Executive Officer of Mercia, commented: "These are two
businesses we have been excited about for some time, actively supporting them
within our managed funds. We are pleased to welcome them onto our balance
sheet, where we have significant liquidity to support both in reaching their
next stage of maturity. Both embody what we look for in UK regional
businesses, combining innovative technology with deep sector specialism to
create real-world solutions."
"Axis Spine's patented technology has significant benefits over incumbents
and, with FDA clearance now received, the team is well placed to move towards
commercialisation in the US. We look forward to supporting the team as they
scale a unique product.
"Nova Pangaea is part of the solution within multibillion dollar markets as
industries and governments alike look to transition to cleaner energy. This
funding round will enable the business to invest in its growth, including the
delivery of its first commercial production facility in 2023. We are excited
to be supporting the scaling of Nova Pangaea as it accelerates its
commercialisation, signs new partnerships and ramps up its production
capabilities."
-Ends-
For further information, please contact:
Mercia Asset Management PLC +44 (0)330 223 1430
Mark Payton, Chief Executive Officer
Martin Glanfield, Chief Financial Officer
www.mercia.co.uk (http://www.mercia.co.uk/)
Canaccord Genuity Limited (NOMAD and Joint Broker) +44 (0)20 7523 8000
Simon Bridges, Emma Gabriel
Singer Capital Markets (Joint Broker) +44 (0)20 7496 3000
Harry Gooden, James Moat
FTI Consulting +44 (0)20 3727 1051
Tom Blackwell, Immy Ransom
mercia@fticonsulting.com
About Mercia Asset Management PLC
Mercia is a proactive, specialist asset manager focused on supporting regional
SMEs to achieve their growth aspirations. Mercia provides capital across its
four asset classes of venture, private equity, debt and proprietary capital:
the Group's 'Complete Connected Capital'. The Group initially nurtures
businesses via its third-party funds under management, then over time Mercia
can provide further funding to the most promising companies, by deploying
direct investment follow-on capital from its own balance sheet.
The Group has a strong UK footprint through its regional offices, university
partnerships and extensive personal networks, providing it with access to
high-quality deal flow.
Mercia Asset Management PLC is quoted on AIM with the EPIC "MERC".
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