NetScientific participates in PDS Biotechnology $45m equity issue and related party transaction

NetScientific plc

(“NetScientific”, the “Group” or the “Company”)

NetScientific participates in PDS Biotechnology $45m equity issue and related party transaction

London, UK – 16 June 2021 – NetScientific plc (AIM: NSCI), the international life sciences and sustainability technology investment and commercialisation Group, announces that its portfolio company PDS Biotechnology Corporation (“PDS”) (Nasdaq: PDSB) yesterday announced an issue of c.5.3 million new shares of common stock to raise gross proceeds of c.USD45 million (“New Issue”). NetScientific currently owns 1,278,000 shares of PDS’ common stock, representing 5.7% of its fully diluted share capital prior to the issue.

The Board of NetScientific believes that PDS has made excellent progress since its last fund raising and has therefore agreed to subscribe US$510,000 (c. £363,000) for 60,000 shares of common stock in the New Issue, which would result in its interest in PDS amounting to c. 4.86 per cent. on a fully diluted basis upon completion of the New Issue.

In order to finance the subscription, NetScientific has today amended its £500,000 loan facility with Beckman Group, originally announced on 11 February 2020, to allow repaid sums to be drawn down again. The facility incurs interest of 10.0% pa on drawn amounts and is secured on the whole of NetScientific’s interest in PDS. The Board intends to repay the loan out of the proceeds of the placing announced on 10 June 2021, which is expected to be received on 29 June 2021.

As Beckman Group is associated with M A Lawson, who is interested in 22% of NetScientific’s issued share capital, the secured loan facility represents a related party transaction in accordance with Rule 13 of the AIM Rules for Companies. The Directors of NetScientific consider, having consulted the Company’s nominated adviser, that the terms of the facility are fair and reasonable insofar as its shareholders are concerned.

Dr. Ilian Iliev, CEO of NetScientific and Board Member at PDS Biotechnology said: “Following a transformational year for PDS, and growing market recognition of the potential of its Versamune® platform, this latest investment provides PDS with the resources to continue executing its ambitious strategy in the immuno-oncology space.”

John Clarkson, Chairman said: “The Board of NetScientific believes that PDS has had encouraging performance since the last investment by NetScientific in August 2020, and has strong prospects going forward as exemplified by the recent announcements around ASCO and company presentations to the market.”

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About NetScientific

NetScientific plc (AIM: NSCI) is a holding company, that invests in, develops, commercialises and realises shareholder value in life sciences/healthcare, sustainability and technology companies, which offer significant growth potential predominately in the UK and USA, as well as globally.

With the acquisition of EMV Capital in August 2020, the Group doubled its portfolio from 8 to 17 companies, either through direct subsidiary, balance sheet investment or capital under advisory, varying from start-up private companies to publicly listed equities.

NetScientific delivers shareholder returns through a proactive and hands-on management approach to their portfolio companies; identifying, investing in, and helping to build game-changing companies. The Group targets value inflection points and the release of value through partial or full exits from trade sales, public listings, or equity sales. The Company has a strong transatlantic and growing international presence, providing attractive expansion prospects.

NSCI can deploy a capital-light investment structure; utilising the power of the PLC Brand, and the NetScientific balance sheet to anchor future investments and achieve a multiplier effect by attracting 3rd party investment for the portfolio companies.

NetScientific is headquartered in London, United Kingdom, and was admitted to trading on AIM, a market operated by the London Stock Exchange, in 2013 (website: netscientific.net).