TIDMNSCI
RNS Number : 5323A
NetScientific PLC
23 January 2024
For release on RNS: 07.00, 23 January 2024
NetScientific plc
("NetScientific" or the "Company")
Liver disease diagnostics company Glycotest secures $1 million
investment from Fosun
NetScientific Plc (AIM: NSCI), the deep tech and life sciences
VC investment group, announces that its portfolio company
Glycotest, Inc. ("Glycotest") has successfully closed a $1 million
follow-on investment ("Investment") by Fosun Industrial Co.,
Limited ("Fosun").
As announced by the Company on 2 May 2023, Fosun agreed to make
the Investment as part of a $10 million investment and licensing
agreement between the parties in 2019 ("2019 Agreement") upon
Glycotest providing Fosun with a licence allowing it direct access
to the IP licensed by Glycotest in certain circumstances. Such
licence has been procured by Glycotest and as such the remaining
investment commitment by Fosun now stands at $2 million, subject to
the satisfaction of milestones agreed in the 2019 Agreement.
As a result of the Investment, the Glycotest secured convertible
loans, which total $812,448 plus accrued interest, ("2023 CLA") may
be converted into preferred shares in Glycotest at the election of
Glycotest. The Company understands from Glycotest that it intends
to convert such loans pending confirmation from the lender under
the 2023 CLA of the treatment of accrued interest thereunder (which
interest may be converted into preferred shares or repaid in
cash).
Following the Investment and conversion of the 2023 CLA
(assuming all accrued interest is converted), the Company's direct
stake in Glycotest will be 55.90 per cent, alongside Fosun's
interest of 34.75 per cent. and the 2023 CLA interest of 6.16 per
cent.
The proceeds of the Investment will, inter alia, support
Glycotest in the development and validation of its assays ahead of
commercial launch. Such validation is possible after the completion
in 2023 of subject enrolment and sample collection in Glycotest's
clinical validation study, providing a valuable biobank which the
company believes now represents one of the world's largest
collections of liver cancer blood samples. Glycotest is in advanced
negotiations with a number of prospective collaboration partners,
further details of which shall be reported in due course.
Dr Ilian Iliev, CEO of NetScientific, and Chair of Glycotest
said:
"We welcome this additional funding from Fosun. Complemented by
the 2023 CLA, these investments demonstrate strong financial
support as Glycotest continues to progress towards
commercialisation, including in the US and China.
"EMV Capital securing this third party funding is a further
example of our capital efficient investment model, allowing
Glycotest to grow without reliance upon the NetScientific balance
sheet, and deploying our Value Creation Services team to underpin
that growth."
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 PUBLICATION OF THIS ANNOUNCEMENT VIA A
REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOW
CONSIDERED TO BE IN THE PUBLIC DOMAIN.
-Ends-
NetScientific
NetScientific
Ilian Iliev, CEO Via Belvedere Communications
Panmure Gordon (UK) Limited (NOMAD and
Broker)
Emma Earl / Freddy Crossley / Will Goode
/ Mark Rogers (Corporate Finance)
Rupert Dearden (Corporate Broking) +44 (0)20 7886 2500
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-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 Glycotest
Glycotest is a US based liver disease diagnostics company
commercialising new and unique blood tests for life threatening
liver cancers and fibrosis-cirrhosis. Founded in 2012 by
NetScientific on technology originating at the Baruch S. Blumberg
Institute and Drexel University College of Medicine, Glycotest has
exclusive, world-wide rights to over 50 patent-protected serum
glycoprotein biomarkers, assay technology, and biomarker panels and
algorithms that exploit novel sugar-based disease signals.
Glycotest's lead product is its hepatocellular carcinoma (HCC)
panel, a biomarker panel, driven by a proprietary algorithm, for
curable early-stage HCC, the most common form of primary liver
cancer. This has outperformed current standard tests in preliminary
clinical studies. Glycotest has also developed tests for liver
fibrosis-cirrhosis and cholangiocarcinoma, the second most
prevalent form of liver cancer.
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END
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