NetScientific
plc
("NetScientific", the
"Group" or the
"Company")
DeepTech Recycling:
Fundraising and Business Update
NetScientific plc (AIM: NSCI), the
deep tech and life sciences VC investment group, announces that its
portfolio company, DeepTech Recycling Limited ("Deeptech Recycling"), a plastic
recycling technology business offering an innovative solution to
the environmental challenges of plastic pollution, has successfully
closed a £0.8 million fundraising ("Fundraising"), with the combined
investment amount which includes a prior close being £2.1 million
(further details below).
Fundraising
The Fundraising follows a first
closing of £1.0 million via an advanced subscription agreement
("ASA") that was completed
in December 2023 and a second close of the ASA of £0.3 million
shortly thereafter. The investment includes the aforementioned
advance subscription amounts. As outlined in the announcement of 1
December 2023, the proceeds of the Fundraising will, inter alia, continue to support
DeepTech Recycling in the completion of a development phase for its
pilot plant, development and adaption of its targeted technology
and licensing strategy, as well as the set-up of its operating base
and development of its core team.
The Fundraising was led and
syndicated by EMV Capital, the Company's wholly owned venture
capital and corporate finance firm, and alongside new investors
includes further investment from EMV Capital's EMVC Evergreen EIS
Fund.
In December 2022, DeepTech Recycling
was set up as a special purpose vehicle to acquire the majority of
the assets of Recycling Technologies from the administrator, with
NetScientific acquiring a 30% stake at near nil value. Following
the Fundraising, the Company's direct stake in DeepTech Recycling
will be 21.2% on a fully diluted basis. This equates to a
post-investment fair value uplift of £1.8 million. The capital
under advisory of EMV Capital in respect of investors introduced by
it to DeepTech Recycling is £2.1 million, representing 29.3% of the
captable on a fully diluted basis.
Business update
DeepTech Recycling has developed a
chemical recycling solution for different types of plastic waste.
The company is committed to making plastic sustainable and
supporting the global drive towards a circular economy for plastics
through the chemical recycling of plastic waste.
Since the fundraise announced on 1
December 2023, DeepTech Recycling has made significant progress,
including:
·
The signing of a Memorandum of Understanding to
develop a commercial plastics recycling facility in the UK, with a
purchase order received for the first stage of the facility
development project.
· For a second
project, the identification by DeepTech Recycling of a shortlist of
sites and strategic partners for a 7,000-tonne per annum
project.
·
The progression of an appointment process of a
FEED/EPC contractor, from a high-profile shortlist.
·
The enhancement of DeepTech Recycling's team
through strategic hires of new employees. The company has
also welcomed Jonathan Seville, previously President of
the Institution of Chemical Engineers and Executive Dean of
Engineering and Physical Sciences at the University of
Surrey, as a Technical Adviser.
·
New premises have been secured and set up with
labs and a testing plant in Oxfordshire, which will provide
the crucial infrastructure to ensure focus on the
technology development.
Dr
Ilian Iliev, CEO of NetScientific and Interim Chair of DeepTech
Recycling, commented:
"Marvine and his team have effectively leveraged the recent
fundraise, accelerating DeepTech Recycling through critical
development phases. We are excited to support their progress in
major projects in the UK and internationally. This journey
perfectly exemplifies our capital efficient and value-creation
strategy, turning a once undervalued and distressed asset,
effectively valued at zero in 2022, into a thriving venture, and
providing NetScientific shareholders with a significant and
valuable stake at minimal cost."
Marvine Besong, Managing Director and CTO of DeepTech
Recycling, added:
"EMV Capital has provided a unique support package, helping
our team to restart and accelerate progress with DeepTech
Recycling, and to access a supportive investor base that is
committed to ESG and real impact in the plastic waste management
space. It is only 1.5 years since the start of the company, we are
now poised to take on exciting projects in the UK and
internationally, driving sustainability in plastics and
transforming waste into high-value resources. The future looks
promising for DeepTech Recycling."
The person responsible for arranging
the release of this announcement on behalf of the Company is Ilian
Iliev, CEO 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
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION
SERVICE, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE
PUBLIC DOMAIN.
-Ends-
For
more information, please contact:
|
NetScientific
|
|
|
Ilian Iliev, CEO
|
Via Belvedere
Communications
|
|
|
|
|
Panmure Gordon (UK) Limited (NOMAD and
Broker)
|
|
|
Emma Earl / Will Goode / Freddy
Crossley / Mark Rogers (Corporate Finance)
Rupert Dearden (Corporate
Broking)
|
+44 (0)20 7886 2500
|
|
|
|
|
Belvedere Communications
John West / Llewellyn 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-efficient 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
About Deeptech Recycling
DeepTech Recycling is a UK-based
technology company born out of a global environmental crisis caused
by insufficient and unsustainable management of plastic waste. The
company's mission is to make plastic sustainable and support the
critical global drive towards a circular economy for
plastics.
DeepTech Recycling has a unique,
patented and demonstrated technology platform, which was developed
over more than 10 years of structured and accelerated development
and commercialisation, and offers a unique innovative solution to
the environmental challenges of plastic pollution.
The technology converts currently
unrecyclable plastic waste, that would normally be landfilled or
incinerated, into oil that can be used by the petrochemical
industry as the feedstock for producing virgin quality
plastic.
https://www.deeptech-recycling.co.uk/