netscientific
  • ABOUT US
  • TEAM
    • CAREERS
  • PORTFOLIO
  • INVESTORS
    • RNS & RNS REACH
    • FINANCIAL RESULTS
    • CORPORATE GOVERNANCE
  • NEWS
    • RESEARCH REPORTS
  • 2022 AGM NOTICE
  • CONTACT US
netscientific
netscientific
  • ABOUT US
  • TEAM
    • CAREERS
  • PORTFOLIO
  • INVESTORS
    • RNS & RNS REACH
    • FINANCIAL RESULTS
    • CORPORATE GOVERNANCE
  • NEWS
    • RESEARCH REPORTS
  • 2022 AGM NOTICE
  • CONTACT US

Sale of Wanda and Vortex

Mar 22, 2019
-
News, RNS Announcements

22 March 2019

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014

 

NetScientific plc
(“NetScientific” or the “Company”)

Sale of Wanda and Vortex

 

On 18 March 2019 NetScientific announced that it had received an indicative proposal from a third party regarding the sale of the Company’s shareholdings in Vortex Biosciences, Inc. (“Vortex”) and Wanda, Inc. (“Wanda”) (the “Potential Disposal”).

It stated that, having considered the indicative terms of, and taking account of the anticipated timeline to complete and the execution risks of the Potential Disposal, the Board had concluded that it was not in the best interests of the Company and the remaining Portfolio Companies to proceed with the Potential Disposal. Subsequently, the directors of Vortex and Wanda respectively resolved to effect the orderly wind up of those companies.

Following the announcement of 18 March 2019, NetScientific received a further approach from that third party, Deeptech Disruptive Growth Investments Ltd (“Deeptech”), an affiliated special purpose vehicle (“SPV”) of EMV Capital Ltd, detailing revised terms regarding the Potential Disposal. Those revised terms addressed satisfactorily the Board’s previous concerns regarding the timeline and execution risk relating to the Potential Disposal. As such, the Company announces that it has completed the sale of its interests in Vortex and Wanda, together with any outstanding loans and convertible loan notes owed by Wanda or Vortex to the Company, to Deeptech for cash proceeds of £150,000 (the “Sale”).

Immediately prior to completion, NetScientific was interested in approximately 95.0% and 70.8% of the issued shares of common stock of Vortex and Wanda, respectively, and 100% of the Preferred Shares of Wanda. Additionally, the Company had loans outstanding to Vortex of £22,223,000.

In the year ended 31 December 2017, the losses before tax of Vortex and Wanda included within the consolidated accounts of NetScientific amounted, in aggregate, to £4,960,000 and £1,303,000, respectively and the net liabilities of Vortex and Wanda at the same date were £16,624,000 and £8,946,000, respectively. The inter-company debt of Wanda, £7,654,000, was fully written off in February 2019.

Melvin Lawson, who is interested in 29.98% of the issued share capital of NetScientific, is also the principal provider of finance to the EMV Capital Ltd SPV Deeptech. Accordingly the Sale represents a related party transaction in accordance with AIM Rule 13. The Directors consider, having consulted with the Company’s nominated adviser, that the terms of the Sale are fair and reasonable insofar as shareholders of the Company are concerned.

NetScientific will utilise the proceeds of the Sale towards its ongoing working capital requirements.

 

For more information, please contact:

NetScientific

François R. Martelet, M.D., CEO

Ian Postlethwaite, CFO    

                   

Tel: +44 (0)20 3514 1800

WH Ireland Limited (NOMAD, Financial Adviser and Broker)

Chris Fielding / Jessica Cave

 

Tel: +44 (0)20 7220 1666

 

   

 

About NetScientific

NetScientific is a transatlantic healthcare technology group with an investment strategy focused on sourcing, funding and commercialising technologies that significantly improve the health and well-being of people with chronic diseases.

For more information, please visit the website at http://www.NetScientific.net

Share on FacebookShare on TwitterShare on Linkedin
← PREVIOUS POST
Resignation of CEO
NEXT POST →
PDS merger with Edge Therapeutics update

 

NetScientific plc

Level 39,
One Canada Square,
London, E14 5AB

Tel: +44 20 3514 1800
www.netscientific.net
info@netscientific.net

  • RNS & RNS Reach
  • Financial Results
  • Financial Calendar
  • Corporate Governance
  • News
  • Historic Material
Copyright
Terms of Use
Sale of Wanda and Vortex - NetScientific
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsAccept
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT