NetScientific PLC (LON:NSCI) said on Monday that its portfolio companies Vortex Biosciences and Wanda Inc are set to be wound up.
The firm, which invests in development-stage medical and healthcare businesses, had received an indicative proposal from a third party for the sale of its shareholdings in Vortex and Wanda.
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But after considering the indicative terms of the potential disposal and the expected timeline to complete a deal, NetScientific concluded that “the level of consideration offered is not sufficient to justify the company continuing to provide the necessary financial support to Wanda and Vortex” while it carries out due diligence and negotiations.
The group said such a move would affect the company’s ability to allocate sufficient cash resources to its other portfolio companies Glycotest Inc., ProAxsis Ltd and PDS BioTechnology. NetScientific believes these portfolio companies have the “most realistic prospects” of delivering shareholder returns.
“The board has therefore concluded that it was not in the best interests of the company to proceed with the potential disposal,” it said.
“Subsequently, the directors of Vortex and Wanda respectively resolved to effect the orderly wind up of those companies.”
READ: NetScientific lifted as portfolio company PDS Biotechnology announces merger with Edge Therapeutics
The combined company will trade under the PDS name and will start trading on Nasdaq today under the ticker PDSB.
NetScientific's chief executive Francois Martelet said: "We are delighted that the merger has completed, and with the liquidity attributable to NetScientific's holding in PDS Biotechnology Corporation following the listing on Nasdaq."