Ventive secures c.Â£900,000 investment
For release: 07.00, 6 November 2023
("NetScientific" or the "Company")
Heat pump specialist Ventive secures c.£900,000 investment
NetScientific Plc (AIM: NSCI), the deep tech and life sciences VC investment group, announces that its portfolio company Ventive has successfully closed a c.£900,000 investment ("Investment").
The Investment included £316,000 from existing shareholders and the conversion of two existing convertible loans (and interest thereon) valued at c.£600,000. This is the first closing as part of Ventive's proposed £1 million to £1.5 million investment programme, with further new investment anticipated prior to 30 April 2024 in one or more additional closings.
This additional funding is complemented by ongoing non-dilutive funding from, amongst other grants awarded, a £1.5 million BEIS grant secured in 2022, as well as a recently awarded £100,000 UK Government grant focused on 'net zero HVAC' systems.
The Investment was led and syndicated by EMV Capital, the Company's wholly owned venture capital and corporate finance firm. It follows the initial investment led and syndicated by EMV Capital that was announced (via RNS Reach) on 20 October 2022, where EMV Capital secured an initial c.16% stake in partial settlement of its fees. Since that initial investment, the value creation team of EMV Capital has worked closely with Ventive to stabilise and develop its business plan and product range.
The proceeds of the Investment will support the completion of the design and test phase and factory build for Ventive's modular heat pumps, further enhancements to its passive air ventilation product range, and build-up of its marketing and sales capacity to drive sales of its existing product range. The Ventive balance sheet is also streamlined following the conversion of the convertible loans.
Following completion of the Investment, the total equity holding of the NetScientific group in Ventive is 11.0% on a fully diluted basis, which includes the partial settlement of its corporate finance fees relating to the Investment. This holding equates to a post-investment fair value of £893,000, a substantial increase of 1,617% from the £52,000 reported as at 31 December 2022. In addition, following the introduction of investors to Ventive by EMV Capital under its capital efficient model, NetScientific's capital under advisory with Ventive is now 23.8% of the fully diluted share capital.
Ventive designs and manufactures intelligent heating and ventilation solutions to make buildings healthy, comfortable, efficient, and affordable. Its products address two high priority markets segments: air quality and sustainable heating.
Ventive's passive air ventilation system has been delivered to over 30 schools and five leisure centres, achieving excellent air quality results. Its novel heat pump product, which is in advanced stages of development, is a comprehensive solution for residential applications, with a unique modular design and a novel thermal store. Momentum for the business is underpinned by significant regulatory changes, increasing energy prices, and climate change policies.
Rob Morrison, Managing Director of Ventive, said:
"This investment is a strong endorsement of our work, and recognition of Ventive as a pioneer in the design of naturally intelligent ventilation systems to deliver fresh air at minimal energy cost. Since heat pumps are powered by electricity, a comparatively easy source of energy to decarbonise, they can play a prominent role in bringing down the environmental footprint of homes and other buildings.
"EMV Capital has provided invaluable support to our fundraising efforts and growth strategy planning, and we are grateful to our shareholders for their continued support in a tough macro-economic climate."
Ed Hooper, Executive Director of NetScientific and Investment Director at Ventive, added:
"We are pleased to see Ventive close out the first tranche of this important fundraising programme, which includes both fresh investment and the conversion of existing convertible loans. This transaction again demonstrates the strength of our capital efficient investment model and the successful execution of our strategy to increase the net asset value and fair value of our business by progressing cohort portfolio companies through value creation stages, obtaining third party investment, and providing proactive portfolio management.
"We believe that this fundraising positions Ventive well for further growth and we look forward to continuing to work closely with Ventive in this rapidly growing high-impact market segment."
The person responsible for arranging the release of this announcement on behalf of the Company is Edward Hooper, General Counsel and Executive Director of the Company.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE UK VERSION OF REGULATION (EU) NO 596/2014 WHICH IS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED. UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
For more information, please contact:
Ilian Iliev, CEO
Via Belvedere Communications
Panmure Gordon (UK) Limited (NOMAD and Broker)
Emma Earl / Freddy Crossley / Mark Rogers (Corporate Finance)
Rupert Dearden (Corporate Broking)
+44 (0)20 7886 2500
John West / Llew Angus / Lily Pearce
+44 (0)20 7653 8702
NetScientific plc (AIM: NSCI) is a deep tech and life sciences VC investment group with an international portfolio of innovative companies.
NetScientific identifies, invests in, and builds high growth companies in the UK and internationally. The company adds value through the proactive management of its portfolio, progressing to key value inflection points, and delivering investment returns through partial or full liquidity events.
NetScientific differentiates itself by employing a capital-light investment approach, making judicial use of its balance sheet and syndicating investments through its wholly owned VC subsidiary, EMV Capital. The group secures a mixture of direct equity stakes and carried interest stakes in its portfolio of companies, creating a lean structure that can support a large portfolio.
NetScientific is headquartered in London, United Kingdom, and is admitted to trading on AIM, a market operated by the London Stock Exchange.
Ventive designs and manufactures innovative intelligent building service systems in the UK, with an aim to create comfort without costing the Earth. From ventilation to heating and cooling, its ambitious team has already commercialised a few technologies and is well positioned to address the complexities of the Energy Transition with its new range of all-in-one home energy systems. Ventive has the ambition to provide a healthy, comfortable and safe indoor environment intelligently and at a reasonable cost, also opening the opportunity to help demand for energy management on an aggregated scale.
Ventive was founded by serial entrepreneur and architect Tom Lipinski with a vision to improve the comfort and sustainability of residential built environment.