REG - NetScientific PLC - Ventive secures c.£900,000 investment

NetscientificAnnouncement

06/11/2023 07:00

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RNS Number : 4115S  NetScientific PLC  06 November 2023

For release: 07.00, 6 November 2023

 

 

 

 

NetScientific plc

("NetScientific" or the "Company")

 

Heat pump specialist Ventive secures c.£900,000 investment

NetScientific Plc (AIM: NSCI), the deep tech and life sciences VC investment
group, announces that its portfolio company Ventive has successfully closed a
c.£900,000 investment ("Investment").

The Investment included £316,000 from existing shareholders and the
conversion of two existing convertible loans (and interest thereon) valued at
c.£600,000. This is the first closing as part of Ventive's proposed £1
million to £1.5 million investment programme, with further new investment
anticipated prior to 30 April 2024 in one or more additional closings.

This additional funding is complemented by ongoing non-dilutive funding from,
amongst other grants awarded, a £1.5 million BEIS grant secured in 2022, as
well as a recently awarded £100,000 UK Government grant focused on 'net zero
HVAC' systems.

The Investment was led and syndicated by EMV Capital, the Company's wholly
owned venture capital and corporate finance firm. It follows the initial
investment led and syndicated by EMV Capital that was announced (via RNS
Reach) on 20 October 2022, where EMV Capital secured an initial c.16% stake in
partial settlement of its fees. Since that initial investment, the value
creation team of EMV Capital has worked closely with Ventive to stabilise and
develop its business plan and product range.

The proceeds of the Investment will support the completion of the design and
test phase and factory build for Ventive's modular heat pumps, further
enhancements to its passive air ventilation product range, and build-up of its
marketing and sales capacity to drive sales of its existing product range. The
Ventive balance sheet is also streamlined following the conversion of the
convertible loans.

Following completion of the Investment, the total equity holding of the
NetScientific group in Ventive is 11.0% on a fully diluted basis, which
includes the partial settlement of its corporate finance fees relating to the
Investment. This holding equates to a post-investment fair value of £893,000,
a substantial increase of 1,617% from the £52,000 reported as at 31 December
2022. In addition, following the introduction of investors to Ventive by EMV
Capital under its capital efficient model, NetScientific's capital under
advisory with Ventive is now 23.8% of the fully diluted share capital.

Ventive designs and manufactures intelligent heating and ventilation solutions
to make buildings healthy, comfortable, efficient, and affordable. Its
products address two high priority markets segments: air quality and
sustainable heating.

Ventive's passive air ventilation system has been delivered to over 30
schools and five leisure centres, achieving excellent air quality results. Its
novel heat pump product, which is in advanced stages of development, is a
comprehensive solution for residential applications, with a unique modular
design and a novel thermal store. Momentum for the business is underpinned by
significant regulatory changes, increasing energy prices, and climate change
policies.

Rob Morrison, Managing Director of Ventive, said:

"This investment is a strong endorsement of our work, and recognition of
Ventive as a pioneer in the design of naturally intelligent ventilation
systems to deliver fresh air at minimal energy cost. Since heat pumps are
powered by electricity, a comparatively easy source of energy to decarbonise,
they can play a prominent role in bringing down the environmental footprint of
homes and other buildings.

"EMV Capital has provided invaluable support to our fundraising efforts and
growth strategy planning, and we are grateful to our shareholders for their
continued support in a tough macro-economic climate."

Ed Hooper, Executive Director of NetScientific and Investment Director at
Ventive, added:

"We are pleased to see Ventive close out the first tranche of this important
fundraising programme, which includes both fresh investment and the conversion
of existing convertible loans. This transaction again demonstrates the
strength of our capital efficient investment model and the successful
execution of our strategy to increase the net asset value and fair value of
our business by progressing cohort portfolio companies through value creation
stages, obtaining third party investment, and providing proactive portfolio
management.

"We believe that this fundraising positions Ventive well for further growth
and we look forward to continuing to work closely with Ventive in this rapidly
growing high-impact market segment."

 

 

The person responsible for arranging the release of this announcement on
behalf of the Company is Edward Hooper, General Counsel and Executive Director
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
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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 / Freddy Crossley / Mark Rogers (Corporate Finance)  +44 (0)20 7886 2500

 Rupert Dearden (Corporate Broking)

 Belvedere Communications

 John West / Llew 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-light 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 Ventive

Ventive designs and manufactures innovative intelligent building service
systems in the UK, with an aim to create comfort without costing the Earth.
From ventilation to heating and cooling, its ambitious team has already
commercialised a few technologies and is well positioned to address the
complexities of the Energy Transition with its new range of all-in-one home
energy systems. Ventive has the ambition to provide a healthy, comfortable and
safe indoor environment intelligently and at a reasonable cost, also opening
the opportunity to help demand for energy management on an aggregated scale.

Ventive was founded by serial entrepreneur and architect Tom Lipinski with a
vision to improve the comfort and sustainability of residential built
environment.

https://ventive.co.uk/ (https://ventive.co.uk/)

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