Frontier IP Group PLC (AIM:FIPP) has announced a new loan facility worth up to £1.5mln with portfolio company CamGraPhIC, a specialist in graphene photonics.
Aimed to aid CamGraPhIC’s growth in the high-speed optical communications space, the latest facility brings the total amount advanced by Frontier IP to the company to £2.2mln.
Announcing the new facility on Monday, Frontier IP explained the funding would be used to “continue development and scale up” CamGraPhIC’s technology, which is already used by multinational semiconductor and telecommunications firms.
Up to £1.5mln worth of 8% fixed-rate unsecured loan notes can be issued under the deal, with these redeemable a year after CamGraPhIC raises new equity worth at least £1mln.
Frontier IP, which looks to support and grow portfolio companies, has previously provided loans to CamGraPhIC to cover the likes of working capital and owns 20.8% of the company.
“CamGraPhIC is already providing revenue-generating services to several major government and commercial organisations both commercially and via grant-funded programmes,” Frontier IP said.
“Graphene photonics is seen by the company's industrial partners as a key enabler for 5G technologies and has potential applications in a range of other sectors.”
Frontier IP rose 5.4% to 46.4p on the news.