LONDON: NetScientific plc, the transatlantic healthcare IP commercialisation group, has conditionally agreed to acquire EMV Capital, an investment services company which has interests in the industrial high-tech, energy, circular economy, smart city, transportation and healthcare sectors.

The Directors of NetScientific are proposing a capital reorganisation in order to increase the market value of the Company’s shares relative to their nominal value.

The Company also announced that it is conducting a placing to raise gross proceeds of approximately £2.3 million before expenses, via the issue of an aggregate of approximately 3,538,455 million new Ordinary Shares at a price of 65 pence per share.

WH Ireland Limited is acting as sole broker in relation to the Placing. NetScientific expects to issue the Placing Shares via a conditional placing being conducted through an accelerated book-build process.

The acquisition of EMV Capital Ltd and Placing are subject, inter alia, to shareholder approval, with the General Meeting expected to be convened for 24 August 2020.

• EMV Capital is an investment services company, which has interests in the industrial high-tech, energy, circular economy, smart city, transportation and healthcare sectors.
• The company is owned and managed by Dr Iliev (the interim CEO of NetScientific).
• EMV Capital’s model is to syndicate investments between financial and corporate investors, and for its management team to take a strong hands-on role post-investment.
• The Directors believe that strong synergies would result from the Acquisition, enabling a commercial and investment strategy with increased revenues and capital gain.
• Additional benefits include a combined portfolio with a broader balance, across more sectors and stages of development, an enhanced team of investment professionals, providing the enlarged group with the capacity to originate, execute and manage a greater portfolio, and specialist IP skills, including patent evaluation and licensing strategy.
• The Acquisition has been structured as a share for share exchange, thereby aligning the interests of all of the Shareholders of the Enlarged Group, as well as ensuring consistency of objectives, both immediately and longer term.

John Clarkson, Chairman of NSCI, said:  “The Board identified through its recent strategy review strong underlying asset value and significant growth opportunities for the business, which it believes has been further increased following COVID-19. Accordingly we propose to adopt a new strategy, with proactive management to realise that potential and maximise shareholder value. In that regard, the Board is delighted to announce that NetScientific plc has conditionally agreed to acquire EMV Capital in an all share transaction. This will accelerate implementation, mitigate risk, and also transform the company, with a broader portfolio, greater prospects and enhanced capabilities, to significantly increase shareholder returns.

“We very much appreciate investors’ support in the placing and with that, look forward to utilising the stronger financial base and leveraging the business to exploit the transatlantic and global opportunities, and deliver for shareholders.”