NetScientific PLC (AIM:NSCI), the life sciences and technology investment holding company, has joined a £4.2mln investment round led by its subsidiary EMV Capital Ltd (EMVC) and others in Edinburgh-based Sofant Technologies Ltd.
AIM-listed NetScientific is contributing £300,000 via its capital-light investment model through convertible loans converting at a discount into this round, with £1.6mln of investment from investors introduced by EMVC, including both direct equity and convertible loans.
Sofant has announced a contract with a Fortune Global 500 defence company to support the development of a next-generation tactical communication system, using the proceeds from this investment round to build a satellite communications terminal during the first half of 2023.
Dr Ilian Iliev, chief executive of NetScientific and Sofant board member, said: "We are delighted with Sofant's tremendous progress in their development roadmap.
“They continue to make a key contribution to the UK's space tech and telecoms sectors by developing a key component for increased resilience and energy efficiency in SatComs and other telecommunications systems.”
David Wither, chief executive of Sofant, added: "We are very pleased to have investors who understand the disruptive nature of Sofant's technology.
“Sofant will use the proceeds from this investment round to build a satellite communications terminal which targets mobile applications, with commercial sales expected to begin later in the year."
This investment will result in the direct equity holding in Sofant by NetScientific of 1.8%.