Mercia Asset Management PLC Mercia announces two new direct investments (1736D)
October 18 2022 - 1:00AM
UK Regulatory
TIDMMERC
RNS Number : 1736D
Mercia Asset Management PLC
18 October 2022
RNS 18 October 2022
Mercia Asset Management PLC
("Mercia", the "Group" or the "Company")
Mercia announces two new direct investments - Axis Spine and
Nova Pangaea
Mercia Asset Management PLC (AIM: MERC), the proactive,
regionally focused specialist asset manager with c.GBP959million of
assets under management, is pleased to announce new direct
investments into Axis Spine Technologies Ltd ("Axis Spine") and
Nova Pangaea Technologies Ltd ("Nova Pangaea").
Axis Spine
The investment into Axis Spine comes as part of a GBP10.8million
funding round. Mercia has made a direct investment of
GBP3.0million, alongside GBP3.8million from Mercia's managed funds.
MedTex Ventures, a US-based venture capital firm focused on the
medical device industry, has invested GBP3.0million with the
remaining GBP1.0million coming from other external investors.
Mercia's managed funds first invested in Axis Spine in 2017.
Following this investment, Mercia holds a 11.7% fully diluted
direct equity stake in Axis Spine, with funds managed by Mercia
holding a further 33.6% fully diluted equity stake.
Axis Spine is a Med Tech business delivering spinal implants.
Axis has a highly differentiated platform of modular implants,
designed to address the increasingly recognised and unmet clinical
need of cage subsidence. This technology promises to not only
reduce post operative spinal segment collapse, but also improve
spinal alignment in patients suffering chronic back pain and spinal
deformity.
Insertion of Axis' proprietary modular cages requires much less
force than conventional implants, they are slimmer and have a wider
footprint, thereby reducing the risk of damage to vertebral segment
endplates and thus the loss of alignment that impacts one in three
patients.
Nova Pangaea
The investment into Nova Pangaea is part of a GBP5.3million
funding round. Mercia has made an initial direct investment of
GBP2.3million via a convertible loan, alongside GBP1.0million from
Mercia's Northern Powerhouse Investment Fund ("NPIF") and a further
GBP2.0million from co-investors.
Nova Pangaea is a Clean Tech business focused on creating
biofuels and biochar to address some of the most pressing climate
concerns of today. Led by CEO Sarah Ellerby, Nova Pangaea provides
a patented process called REFNOVA(R) that converts woody and
agricultural residues into high-value sustainable products that are
used to manufacture Sustainable Aviation Fuel ("SAF") and a range
of biochemicals. The process also produces Biochar, which is
crucial for carbon dioxide removal and soil enhancement.
Mark Payton, Chief Executive Officer of Mercia, commented:
"These are two businesses we have been excited about for some time,
actively supporting them within our managed funds. We are pleased
to welcome them onto our balance sheet, where we have significant
liquidity to support both in reaching their next stage of maturity.
Both embody what we look for in UK regional businesses, combining
innovative technology with deep sector specialism to create
real-world solutions."
"Axis Spine's patented technology has significant benefits over
incumbents and, with FDA clearance now received, the team is well
placed to move towards commercialisation in the US. We look forward
to supporting the team as they scale a unique product.
"Nova Pangaea is part of the solution within multibillion dollar
markets as industries and governments alike look to transition to
cleaner energy. This funding round will enable the business to
invest in its growth, including the delivery of its first
commercial production facility in 2023. We are excited to be
supporting the scaling of Nova Pangaea as it accelerates its
commercialisation, signs new partnerships and ramps up its
production capabilities."
-Ends-
For further information, please contact:
Mercia Asset Management PLC
Mark Payton, Chief Executive Officer
Martin Glanfield, Chief Financial Officer +44 (0)330 223
www.mercia.co.uk 1430
Canaccord Genuity Limited (NOMAD and Joint +44 (0)20 7523
Broker) 8000
Simon Bridges, Emma Gabriel
+44 (0)20 7496
Singer Capital Markets (Joint Broker) 3000
Harry Gooden, James Moat
+44 (0)20 3727
FTI Consulting 1051
Tom Blackwell, Immy Ransom
mercia@fticonsulting.com
About Mercia Asset Management PLC
Mercia is a proactive, specialist asset manager focused on
supporting regional SMEs to achieve their growth aspirations.
Mercia provides capital across its four asset classes of venture,
private equity, debt and proprietary capital: the Group's 'Complete
Connected Capital'. The Group initially nurtures businesses via its
third-party funds under management, then over time Mercia can
provide further funding to the most promising companies, by
deploying direct investment follow-on capital from its own balance
sheet.
The Group has a strong UK footprint through its regional
offices, university partnerships and extensive personal networks,
providing it with access to high-quality deal flow.
Mercia Asset Management PLC is quoted on AIM with the EPIC
"MERC".
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