REG - NetScientific PLC - Martlet Capital Update

NetscientificAnnouncement

13/12/2021 07:00

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RNS Number : 3309V  NetScientific PLC  13 December 2021

NetScientific plc

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

 

Martlet Capital Update

 

EMVC syndicates additional £0.73m investment

 

Syndication highlights strength of capital light investment model

 

London, UK - 13 December 2021 - NetScientific plc (AIM: NSCI), the
international life sciences and sustainability technology investment and
commercialisation Group, announces that on 9 December 2021 its corporate
finance and venture capital subsidiary EMV Capital Ltd ("EMVC") (i) syndicated
approximately £0.74m of its investment into Martlet Capital, first announced
on 16 September 2021, to its investor network, and (ii) invested a further
£0.73m, approximately, into Martlet Capital which has been agreed to be
syndicated to the investor network shortly.

 

As a result of this investment, the total syndicated amount is £1.47m, under
carried interest arrangements, while the Group's direct holding upon
completion will have decreased from £1m to £0.25m. This brings the total
direct and syndicated investment in Martlet Capital, to a total of £1.72m,
which represents 11.2% of the Martlet Capital's issued share capital (1.6%
direct holding and 9.6% advised), and £0.52m of Convertible Loan Notes
(£0.075m direct holding and £0.445m advised).

 

Since the September 2021 investment co-led by the Group, Martlet Capital has
completed the transfer of assets agreement with Marshall Group for the
transfer of 50+ technology assets, as well as continued to support Marshall
Group's existing portfolio of early stage, Cambridge based, deep tech
companies through additional follow-on investments, including:

 

·     Techspert.io (AI driven expert network connections platform):
£200,000 in September 2021 as part of an £8.5m round;

·     Spotta (smart insect and pest detection and monitoring systems):
£128,000 in October 2021 as part of a round of over £2.2m; and

·     Dogtooth Technologies (intelligent fruit picking robots): £125k
in December 2021 as part of a £7m round.

 

Commenting on this increase in investment, Dr Iliev CEO of NetScientific and
Board member at Martlet Capital, said: "This provides yet another example of
the use of NetScientific's capital light investment to add value. The £1m
original investment by NetScientific in September enabled the execution of a
complex deal, while the use of EMV Capital's investment network enabled the
completion of the deal through further advised investment into Martlet Capital
- enabling the return of much of the original investment to NSCI's balance
sheet. The Martlet Capital team has hit the ground running, resulting in
further growth opportunities for NetScientific as we gain exposure to the
excellent deal flow from the Cambridge cluster."

 

Paul Bailey, Managing Director of Martlet Capital, said: "Martlet Capital Ltd
is delighted to have the continued support of NetScientific with the
completion of their second investment closing endorsing our position as a
leading seed stage tech investor. The European technology sector is booming
and as reported in The Times recently, Britain is leading the way in tech
investment with Cambridge being chosen as the unicorn capital of Europe. Early
stage investment levels are now on a par with the US for the first time and
with the transatlantic links that NetScientific can offer Martlet's portfolio
companies then we are in a great position to nurture founders, invest at seed
stage, provide scale-up capital and talent management expertise to these
amazing technology companies."

 

For more information, please contact:

 NetScientific plc                                         Via Walbrook PR
 Ilian Iliev, CEO

 WH Ireland Limited (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

 

NetScientific plc (AIM: NSCI) is an active 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: https://netscientific.net/ (https://netscientific.net/) ).

 

About EMV Capital

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

EMV Capital Ltd (EMVC), a fully-owned subsidiary of AIM-listed NetScientific
PLC, is a London-based award-winning investor focused on B2B companies in the
healthcare, sustainability and industrials sectors with investments in the UK,
US and Israel. EMVC's model is to develop a customized investment strategy for
each company, combining its network of investors from Family Offices, Wealth
Managers, Institutional VC investors and Corporate VC funds. EMVC recognizes
the benefits of corporate engagement for early-stage technology companies,
with EMVC's team having led and structured investments alongside some of the
world's leading corporations. EMV Capital has a growing EIS investment
practice, and is an exclusive advisor to the EMVC Evergreen EIS Fund.

 

EMV Capital Limited is an appointed representative of Sapphire Capital
Limited, which is authorised and regulated by the Financial Conduct Authority.

 

About Martlet Capital

www.martletcap.com (http://www.martletcap.com/)

Martlet Capital is an early-stage investor based in Cambridge, which has
invested in more than 60 start-ups with high growth potential, since its
launch in 2011. Martlet Capital provides patient capital for IP rich,
early-stage B2B start-ups, with a primary focus on deep technology and life
science companies based in Cambridge. The team is comprised of experienced
investors and entrepreneurs. In addition to capital, the team offers value
beyond capital through support, experience and a network of contacts. Over the
last decade they have achieved several exits from their portfolio, helping
companies scale from first-round through to exit from trade sales to global
technology companies and IPO's.

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