NetScientific PLC (AIM:NSCI) has acquired 75% of the issued share capital of Cetromed Limited, a life sciences holding company with several portfolio companies spun out of the University of Leuven, Belgium.
The acquisition will result in further internationalisation of NetScientific's portfolio and exposure to a key European high-tech cluster around the University of Leuven, it said in a statement.
The consideration is £192,390 is made up of £150,000 in shares and the rest in warrants with a strike price of 130p each.
Cetromed was a holding company owned by the Azima Trust, the family trust of Farad Azima, the founder and ex-CEO of NetScientific who passed away in 2020.
On completion, there will be a write-off of liabilities of £3.4mln between Cetromed and Zahra Holdings Ltd, and as a result net assets on completion will be £0.8mln.
NetScientific will also make a secured loan of £200,000 to Centromed subsidiary FOx Biosystems once the deal closes.
Ilian Iliev, CEO of NetScientific said: "We were delighted to work with the Azima Trust on this opportunity, building on the founder's legacy.
“The deal demonstrates NSCI's capital-light investment approach, is additive to NSCI's balance sheet and opens up future opportunities at minimal cash commitment.”