LONDON: NetScientific plc (AIM: NSCI), the international life sciences and sustainability technology investment and commercialisation Group announces that portfolio company Q-Bot has successfully closed a £1.62 million investment round to fund the next stage of its growth.
The additional funds will allow Q-Bot to accelerate the rollout of its unique patented solution of using robots to apply underfloor home insulation across the UK, and meet growing overseas demand for Q-Bot’s solution.
Q-Bot is a London-based award-winning robotics and AI company that has pioneered cutting edge technology and digital solutions for the inspection, maintenance, insulation and upgrade of buildings and homes. In the year ended 31 March 2022, Q-Bot generated sales of £2.2m, and expects significant growth in sales as market deployment accelerates.
With this funding, Q-Bot will continue its strong growth to meet the rapidly increasing market demand for its offering to UK social and private landlords in the context of rising energy bills and move to decarbonisation of UK housing. Q-Bot’s growth is through an expansion of its network of Accredited Installation Partners, industrialising robot manufacturing at scale, growing sales into the UK and international markets.
This transaction follows a £2.8m deal in December 2021, which included the setup of a Convertible Loan Facility, and the purchase of equity interests from early Q-Bot investors and a departing founder of Q-Bot. During the period there were also several changes to the Q-Bot Board and management team, and a Board led strategy review process. Since then the Q-Bot team has worked hard to reposition the business to capture the opportunities and made progress in all areas during the first half of 2022.
This round, which comprised conversion of £762,000 of loan notes (of which £500,000 was provided by NetScientific as announced on 21 December 2021) and £900,000 of new equity, results in the direct equity holding in Q-Bot by NetScientific increasing from 18.3% to 20.6%, in addition to EMVC’s Capital Under Advisory representing 16.7%. NetScientific’s 20.6% Q-Bot direct stake is valued at £2.77m based on this funding round- a gain of approximately £1.45m in less than one year.
John Clarkson, Chairman of NetScientific commented: “We are delighted to have an active role in Q-Bot, which continues to make excellent progress in developing and applying its robotics technology, generating revenue and meeting important market needs. NetScientific has made a significant direct investment, secured substantial syndicated funding and provided management support, to enhance the growth of this enterprising UK company. We look forward to participating in its planned scale-up and further commercialisation, with exciting prospects in the broader application of robotics and AI. This follows NetScientific’s stated strategy of deeper involvement in selected portfolio companies, with strong prospect for both UK and international expansion, offering the potential for greater shareholder returns”
Dr. Ilian Iliev, CEO of NetScientific and Board member at Q-Bot commented: “Q-Bot’s robotics as a service offering is at the right place and right time, providing a massively scalable solution not only to the transition to a low-carbon economy, but to the current crisis in growing households energy bills and energy security. This investment exemplifies NetScientific’s capital light investment model into exciting technology companies, leveraging EMVC syndication alongside our direct funding, helping our portfolio companies accelerate growth – with significant upside possible as the company accelerates market traction.”