Fusion IP (AIM: FIP) is set to take its stake in Mesuro Ltd to 49% after the company drew down the final £0.35 million from Fusion and its other investors Finance Wales and the ERA Foundation after satisfying all milestones set out in the last investment round in April 2009.
The development will also result in a valuation uplift for Fusion IP of £0.6 million.
Mesuro, which sells advanced radio frequency testing and measuring systems to the communications industry, has completed a successful £1 million fundraising in April and launched its first product in June 2009.
Mesuro's technology has been developed as a result of over a decade's research at Cardiff University's Institute of High Frequency and Communication's Engineering. Fusion has a memorandum of understanding with Finance Wales, which outlines a strategy of co-investment in opportunities arising from the agreement with the university.
Fusion IP specialises in university-generated intellectual property. It has long-term exclusive agreements with the University of Sheffield and Cardiff University, giving it access to a combined R&D (research and development) spend of over £185 million a year.
Fusion has also entered into a new co-investment agreement with IP Group, in which IP Group has the right to acquire for cash, 20% of Fusion's equity in any new portfolio company. Earlier this month, the company announced that it had raised approximately £3.2 million through a fundraising and that as a result, IP Group held approximately 19.8% of Fusion.