NetScientific PLC (AIM:NSCI), a venture capital and corporate finance group specialising in deep tech and life sciences, said £1.8 million has been invested into its portfolio company ProAxsis, a specialist in respiratory diagnostics.
This latest funding round was orchestrated by NetScientific's wholly-owned subsidiary, EMV Capital, with additional funds coming from a mix of new investors and the conversion of existing warrants and loans.
A total of £211,000 has come from new backers, £36,000 from the exercise of warrants, and £455,000 through converting loan notes and accrued interest.
At the same time, loans from NetScientific totalling around £776,000 were also converted as part of this financial arrangement. The deal was bolstered by an additional £333,000 grant from Innovate UK, reflecting ongoing non-dilutive support.
This cash infusion will help ProAxsis develop its patient point-of-care product range and support its working capital needs. It also aims to enhance the company's ability to attract strategic partners.
As a result of this investment, NetScientific's direct ownership stake in ProAxsis has increased to 90.66%, boosting its post-investment valuation to approximately £8 million, marking a rise from the previous valuation of £3.5 million as of September 30 last year.
ProAxsis is also planning an additional follow-on investment opportunity of up to £289,000, under the same terms offered to the current new investors, to support ongoing growth and operational needs.
"We welcome this additional funding for ProAxsis," said Dr Ilian Iliev, CEO of NetScientific, and investor director of ProAxsis.
"Complemented by the CLNs [convertible loan notres] and Innovate UK grant, these investments demonstrate strong financial support as ProAxsis develops its offering to the respiratory disease market, whilst it explores options for a potential sale to a new strategic owner.
"EMV Capital securing this third-party funding is a further example of our capital-efficient investment model, allowing ProAxsis to grow without reliance upon the NetScientific balance sheet."