DName-iT Holdings Limited Fundraising

NetScientific PLC

30 June 2023

 

For release on RNS: 07.00, 30 June 2023

NetScientific plc

("NetScientific" or the "Company")

DName-iT Holdings Limited c.£500,000 Fundraising

NetScientific Plc (AIM: NSCI), the deep tech and life sciences VC investment group, is pleased to announce the completion today of a c.£500,000 third party investment into its portfolio company DName-iT Holdings Limited ("DName-iT"), a pioneering company in the genetic analysis industry and a spin-out from the world leading research institution Katholieke Universiteit Leuven, Belgium.

DName-iT is looking to support the Laboratories industry, which is under increasing pressure to deliver accurate Next Generation Sequencing ("NGS") testing for eligibility for novel oncology treatments and other critical advances in personalised medicine.

The investment round was led by EMV Capital (the wholly-owned subsidiary, and the corporate finance and venture capital arm, of NetScientific), supported by both EMV Capital investors and the Gemma Frisius Fund, a venture seed capital fund formed jointly by Katholieke Universiteit Leuven, KBC Group, and BNP Paribas. The fundraising includes the conversion of advanced subscription monies and further subscriptions for equity investment, fuelling the continued growth and development of DName-iT.

DName-iT has developed an advanced, scalable platform to deliver simple, cost-effective specimen authentication and identify both specimen and reagent contamination issues in laboratory tests using NGS. NGS is used increasingly for neonatal and oncology analyses where mistakes can be critical and pathology providers are under increasing pressure to ensure accuracy. DNames® are a proprietary molecular barcoding system that, when combined with DName-iT's software tools, can deliver traceability for patients' blood, saliva and extracted-DNA specimens, alongside insights into the NGS process such as highlighting reagent contamination. This cutting-edge technology positions DName-iT, in the Board's opinion, as a pioneer in a rapidly growing genetic analysis industry where accurate, reliable and cost effective NGS is becoming central to the delivery of personalised medicine.

The investment is expected to enable DName-iT to accelerate further industry pilots, already started in Europe and planned for the USA, validating its technology and commercial strategy prior to product launch and commercial sales. The funds will also support the expansion of the team to drive future growth, and allow additional investment in the software underpinning DNames®.

Following completion of the fundraising, the total equity holding of NetScientific in DName-iT, held through its 75 per cent. stake in CetroMed Limited acquired in December 2021, is now 36.9 per cent, which equates to a post-investment fair value of £0.83 million, an increase of 730 per cent. from the £0.1 million reported as at 31 December 2022. In addition, the NetScientific capital under advisory with DName-iT has 14.8 per cent. of the issued share capital.

Following the addition of DNameIT to NetScientific's portfolio in December 2021, the EMV Capital team put in place a value creation plan that has seen the company restart its activities, restructure the business, build a collaboration with ProAxsis Ltd (a NetScientific portfolio company), put in place support through a strong core management team, commence pilots and raise initial funding.

Kevin Dean, interim CEO of DName-iT said:

"This injection of capital underscores the confidence placed in DName-iT by both EMV Capital investors and the Gemma Frisius Fund, affirming our potential to support with specimen and process assurance the rapid growth of NGS testing in medicine. This fundraising will amplify our go-to-market efforts by enabling us to further validate our technology, strengthen our team, invest in research and development, and cement supply chain partnerships ready for formal product launch."

Dr Ilian Iliev, CEO of NetScientific added:

"We are delighted that EMV Capital assisted DName-iT, recognising the company's potential to accelerate the growth of personalised medicine. This fund raise demonstrates the benefits and impact of NetScientific's differentiated investment strategy, combining value creation services and capital light investment approach, working closely with our University partners and driving portfolio synergies. This multi-faceted strategy shows the scope for novel business models in the financing of innovation in the life sciences industry".

The person responsible for arranging the release of this announcement on behalf of the Company is Ilian Iliev, Chief Executive Officer 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.

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For more information, please contact:

NetScientific

Ilian Iliev, CEO                                                                                                     Via Belvedere Communications

WH Ireland (NOMAD, Financial Adviser and Broker)

Chris Fielding / Darshan Patel / Enzo Aliaj                                                   [phone]

Belvedere Communications

John West / Llew Angus                                                                                   [phone]

Email: [e-mail]

About NetScientific

NetScientific plc (AIM: NSCI) is 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.

www.netscientific.net

About DName-iT

DName-iT is a spin-out from the world-renowned Katholieke Universiteit Leuven, and is developing a platform to improve the accuracy and elimination of errors in genetic testing in high-priority areas such as cancer diagnostics, precision medicine and non-invasive prenatal testing.

To avoid sample authentication errors and to correct for sample contamination in NGS workflows, DName-iT has created a proprietary molecular barcoding system, called DName® barcodes that allows the detection of sample swaps and contamination.

Once the DName® barcodes are spiked into the samples, the barcode stays with the patient genetic code throughout the process, irrespective of the number of sample handling and transfer steps. In the end the results of the genes of interest are read as well as the DName® barcodes, where the laboratory can confirm the patient identity, avoiding independent patient validation steps such as additional SNP fingerprint testing, not only making the entire NGS workflow less time-consuming, but also more cost efficient.

www.dnameit.com

 

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