Investment and commercialisation group NetScientific PLC (AIM:NSCI) has announced that its wholly-owned portfolio company, ProAxsis, has secured a six-month loan agreement worth £500,000 from AB Group.
As part of the agreement, AB has been granted warrants worth £150,000 at an exercise price determined by reference to a future third-party fundraising of at least £500,000, which will be discounted by 30%. The loan is being treated as a related party transaction and carries a 10% annual coupon.
NetScientific chief executive Dr Ilian Iliev said: "A key element of our capital-light investment approach is to help our portfolio companies access funding from third parties.
“We are therefore delighted to have helped secure this loan agreement for ProAxsis, which will help it accelerate its commercial and investment strategy in the respiratory diagnostics space.”
ProAxsis is a respiratory diagnostics specialist aiming to help people with airway bacterial infections.