NetScientific PLC (AIM:NSCI) will end up with an 18.7% stake in a robotics and AI company after leading its funding round.
Through its venture capital division EMV Capital, the group advised on the £2.8mln transaction, which comprised of a convertible loan note issue and direct equity investment.
The latter saw the purchase of equity from early Q-Bot investors and a departing founder.
The loan note, repayable in two years, will carry an annual coupon of 10% and offers the option to invest in the next funding round at a 20% discount.
NetScientific has paid £1.3mln for its holding in Q-Bot, which has automated underfloor insulation using small remote-controlled vehicles that fit beneath floorboards.
The transaction also helps diversify the portfolio of the group, which is largely focused on life sciences.
NetScientific chief executive, Dr Ilian Iliev, said: "As an early supporter of Q-Bot, I am pleased to see the company move to the next stage of its commercial development, through a focused growth strategy on revenues, profitability and expanded applications of its technology in the construction and engineering industry.
“This substantial direct investment exemplifies the implementation of our stated plans, prioritising portfolio companies for deeper ownership, targeted investment and greater involvement to deliver shareholder returns, while helping our portfolio companies accelerate growth."