RNS
AIM: FIPP
28
June 2024
Frontier IP Group plc
("Frontier IP" or
the "Group")
Portfolio news - Cambridge Raman Imaging
loan facility of up to £0.6 million to support accelerated
growth
Frontier IP, a specialist in commercialising
intellectual property, announces that its portfolio company
Cambridge Raman Imaging Ltd ("CRI" or the "Company") has put in place a loan
facility with Frontier IP of up to £0.6 million (the "Loan Facility") to fund CRI's
short-term working capital requirements during a period of
accelerated growth. Upon completion of the Loan Facility, CRI has
drawn down an initial £0.2m under the Loan Facility.
CRI has developed and patented
graphene-enhanced ultra-fast fibre lasers for high-speed coherent
Raman spectroscopy, initially for use in clinical diagnosis and
biotech research. The Company, a spin-out from the University of
Cambridge and the Politecnico di Milano in Italy, is combining its
laser technology with advanced microscopy. The technology enables
label free discovery of not just morphology but also chemical
composition which is relevant for both diagnosis and
research.
The technology launched earlier this year.
Revenues to date are trending ahead of CRI's management
expectations, with growth being accelerated by this working capital
facility in advance of a planned equity round that is anticipated
for CRI in the coming months.
The key terms of the Loan Facility
are:
a) Frontier IP grants to CRI
an unsecured term loan facility of a total principal amount not
exceeding £600,000;
b) the Loan Facility will
bear interest at a rate of 10% per annum from the date
on which the first loan amount under the Loan Facility is drawn by
CRI;
c) CRI shall use all money
borrowed under the Loan Facility for general working capital
purposes;
d) the Loan Facility shall
have availability to CRI until 31 December 2024;
e) CRI may, on any business
day until 31 December 2024, drawdown on the Loan Facility by
sending Frontier IP a duly completed drawdown request with the
aggregate amount not exceeding £600,000;
f) the amount of each
drawdown by CRI must be not less than £10,000 and must correspond
to CRI's anticipated revenues from any purchase orders received,
tenders issued or sales invoices raised;
g) any amount of the Loan
Facility not drawdown by 31 December 2024 will automatically be
cancelled;
h) CRI shall repay to
Frontier IP each drawn down amount within 5 working days of receipt
of the corresponding cash received from relevant purchase orders or
sales invoices;
i) any amounts
outstanding under the Loan Facility within 30 working days of 31
December 2024 shall be paid in full by 31 December 2024;
and
j) the CRI board has
discretion to allow other participants to provide financing under
the terms of the agreement up to the amount of £600,000.
As at the date of this announcement Frontier IP
has advanced an initial drawdown of £0.2 million to CRI. In
addition, Frontier IP holds a 26.81 per cent. equity stake in
CRI.
For the year ended 31 December 2023, CRI had
net losses of £422k with net liabilities of approximately £28k
based on unaudited statutory accounts.
ENQUIRIES
Frontier IP Group Plc
Neil Crabb, Chief
Executive
Andrew Johnson, Communications &
Investor Relations
Company website: www.frontierip.co.uk
|
T: 020
3968 7815 neil@frontierip.co.uk
M: 07464
546 025
andrew.johnson@frontierip.co.uk
|
Allenby Capital Limited (Nominated
Adviser)
Nick Athanas / George
Payne
|
T: 0203
328 5656
|
Singer Capital Markets
(Broker)
Charles Leigh-Pemberton / James
Fischer
|
T: 0207
496 3000
|
ABOUT FRONTIER IP
Frontier IP unites science and
commerce by identifying strong intellectual property and
accelerating its development through a range of commercialisation
services. A critical part of the Group's work is involving relevant
industry partners at an early stage of development to ensure
technology meets real world demands and needs.
The Group looks to build and grow a
portfolio of equity stakes and licence income by taking an active
involvement in spin-out companies, including support for fund
raising and collaboration with relevant industry partners at an
early stage of development.