RCS - NetScientific PLC - $1million investment in portfolio company, EpiBone

NetscientificAnnouncement

26/11/2021 07:00

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RNS Number : 6626T  NetScientific PLC  26 November 2021

NetScientific plc

("NetScientific", the "Group" or the "Company")

 

 $1million investment in portfolio company, EpiBone

 

London, UK - 26 November 2021 - NetScientific plc (AIM: NSCI), the
international life sciences and sustainability technology investment and
commercialisation Group, announces that it has arranged an investment of a
further $1 million (c. £0.750 million) into its Lifesciences' portfolio
company, EpiBone Inc. ("Epibone"), a revolutionary regenerative medicine
company focused on bone and cartilage reconstruction based in the US. The $1m
investment amount is part of an overall $11m close alongside Boston based
investors, and notable family offices.

 

In line with NetScientific's capital-light investment approach, the investment
comprises of $734k from NetScientific's balance sheet and $266k in advised
funds from Group's corporate finance and venture capital subsidiary EMV
Capital Ltd ("EMVC"). It follows NetScientific's conversion of $250k CLA and
interest into equity in January 2020 (resulting in  0.82% of the company on a
fully diluted basis).The funding will take EpiBone through to a scale-up round
expected in late 2022, and enable the company to accelerate development of its
pipeline.

 

The company's proprietary bioreactor technology is the product of 20 years of
fundamental research and experience with orthopaedic tissue engineering,
resulting in a three-step process to regenerate human bone. Its lead bone
product (EB-CMF), a potential treatment for ramus continuity defects in the
mandible, is now in Phase 1 human trials.  The first step involves a CT scan
to determine the exact 3D size and shape of the bone needed for the defect
being treated, together with extraction of adult stem cells. The second stage
involves the creation of a precise, personalized scaffold of the required
bone, and the design and construction of a custom bioreactor that will
incubate the new bone as it grows. The final stage involves infusion of the
stem cells into the scaffold, and growth inside the bioreactor where they are
remodelled into a personalized bone graft ready for implantation.

 

In 2019, EpiBone announced that the US Food and Drug Administration (FDA) had
granted its Investigational New Drug (IND) clearance to proceed with a Phase
1/2 clinical trial of its lead bone product, EB-CMF, as a potential treatment
for ramus continuity defects in the mandible. The company received further
grants, and in November 2020, Prof. Robert S. Langer Sc.D., co-founder of
Moderna, was appointed to EpiBone's Board of Directors.

 

The investment is in line with NetScientific's Trans-Atlantic strategy,
supporting its portfolio companies to build a presence and links on both sides
of the Atlantic. Post-investment, NetScientific is looking to support EpiBone
in building a presence in the UK and Europe.

 

Commenting on the investment, Nina Tandon, CEO of EpiBone said, "We welcome
NetScientific's participation in this round, providing not only investment,
but also value added skills and channels for EpiBone to grow internationally."

 

Dr. Ilian Iliev, CEO of NetScientific commented: "We see EpiBone as an
emerging leader in the regenerative medicine space, which is now coming of
age. Its platform technology has the potential to transform the bone and
cartilage space by making implants from patients' own cells across multiple
applications. This is another example of NetScientific's judicious investment
approach to build stakes in businesses, and supporting its Trans-Atlantic
model, as it accelerates the portfolio company growth to deliver superior
investment returns."

 

John Clarkson, Chairman of NetScientific commented: "In a planned visit to
Epibone's facilities, (just before the pandemic struck last year) I was
impressed by their technology, development, team, and plans. Since then, we
have built a good relationship with the company, and have been encouraged by
their excellent progress and performance. As we continue to implement our
stated strategy, this is reinforces our "Transatlantic Bridges" programme, not
only through the investment, but significantly also now working together to
develop and expand Epibone's business here in the UK and Europe."

 

For more information, please contact:

 NetScientific                                     Via Walbrook PR
 Ilian Iliev, CEO

 WH Ireland (NOMAD, Financial Adviser and Broker)
 Chris Fielding / Darshan Patel                    +44 (0)20 7220 1666

 Walbrook PR
 Nick Rome/ Paul McManus/                          07748 325 236, 07980 541 893

 Nicholas Johnson                                  or 07884 664 686

 

About NetScientific

https://netscientific.net/

 

NetScientific plc (AIM: NSCI) is a holding company, that invests in, develops,
commercialises and realises shareholder value in life sciences/healthcare,
sustainability and technology companies, which offer significant growth
potential predominately in the UK and USA, as well as globally.

 

With the acquisition of EMV Capital in August 2020, the Group doubled its
portfolio from 8 to 17 companies, either through direct subsidiary, balance
sheet investment or capital under advisory, varying from start-up private
companies to publicly listed equities.

 

NetScientific delivers shareholder returns through a proactive and hands-on
management approach to their portfolio companies; identifying, investing in,
and helping to build game-changing companies. The Group targets value
inflection points and the release of value through partial or full exits from
trade sales, public listings, or equity sales. The Company has a strong
transatlantic and growing international presence, providing attractive
expansion prospects.

 

NSCI can deploy a capital-light investment structure; utilising the power of
the PLC Brand, and the NetScientific balance sheet to anchor future
investments and achieve a multiplier effect by attracting 3rd party investment
for the portfolio companies.

 

NetScientific is headquartered in London, United Kingdom, and was admitted to
trading on AIM, a market operated by the London Stock Exchange, in 2013
(website: netscientific.net (https://netscientific.net/) ).

 

About EMV Capital

emvcapital.com (https://emvcapital.com/)

EMV Capital Ltd is a London based award winning investor focused on B2B
companies in the healthcare, sustainability and industrial sectors.  It is a
subsidiary of AIM-listed NetScientific PLC. EMVC's investments in UK, US and
Israel cover a range of technologies including robotics and AI, advanced
engineering, power electronics and Medtech. EMVC's model is to develop
customized investment strategies for its portfolio companies, combining its
network of private investors, institutional VCs investors and Corporate VC
funds.

 

About EpiBone

https://www.epibone.com/
(https://c212.net/c/link/?t=0&l=en&o=2473993-1&h=3536562799&u=https%3A%2F%2Fwww.epibone.com%2F&a=https%3A%2F%2Fwww.epibone.com%2F)

EpiBone, Inc. is privately-held regenerative medicine company focused on
skeletal reconstruction. Sitting at the intersection of biology and
engineering, the company harnesses the power of a patient's own cells to
create living solutions that become a seamless part of a patient's body.
EpiBone is currently developing a pipeline of bone, cartilage, and compound
(bone and cartilage) products.

 

EpiBone was co-founded in 2013 by CEO Nina Tandon, Sarindr Bhumiratana, and
Gordana Vunjak-Novakovic.  The company received initial funding in 2014 from
the Partnership Fund for New York City, and Peter Thiel's Fund, Breakout Labs.

 

 

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