Sofant Signs EUR7.3m ESA Contract

RNS Number : 2806R

NetScientific PLC

04 November 2021

 

NetScientific plc

("NetScientific", the "Group" or the "Company")

Sofant Signs €7.3m European Space Agency Contract

London, UK - 4 November 2021 - NetScientific plc (AIM: NSCI), the international life sciences and sustainability technology investment and commercialisation Group, announces that its portfolio company, Sofant Technologies ("Sofant"), the leading 5G and Satcom antenna developer based in Edinburgh, has signed a €7.3M contract with the UK Space Agency ("UKSA") and the European Space Agency ("ESA") to support the commercialisation of its low-cost low-power satellite communications platform, of which 50% can be claimed as non-dilutive grant funding, with the balance coming from Sofant.

The funding from the ESA - secured under an ​Advanced Research in Telecommunications Systems (ARTES) contract - will support Sofant Technologies to complete the commercialisation of a satellite communication terminal, allowing users to connect to the cloud via a new generation of low-latency, super-fast satellite networks.

Applying patented and state of the art RF MEMS (radio frequency microelectromechanical systems), Sofant Technologies' platform solves the most pressing power consumption and heat problems faced by the next generation of 5G and satellite communications systems.

Eliminating the need for complex and expensive cooling systems, Sofant's patented RF MEMS (radio frequency microelectromechanical systems) platform will enable Satellite Communication (SatCom) and 5G wireless networks to operate with 70% less power.

By connecting devices wirelessly via a satellite network, Sofant Technologies' terminal will reduce the needs for terrestrial infrastructure and make it much easier for people in rural and remote locations to get online.

With COP26 underway, Sofant's technology is moving towards further environmental savings, with the potential for the technology to be powered by renewable energy. Those relying on solar or wind technology in rural locations will have the ability to connect via their own power sources, further reducing individual carbon footprints in the pursuit of neutral carbon emissions by 2050.

This contract follows the recent fundraise in the company, advised by NetScientific's corporate finance and venture capital division EMV Capital Ltd, deploying its capital light investment approach and leveraging non-dilutive funding to raise a total of £843k - including a £300k direct investment from NetScientific.

NetScientific has advised on £2.3M of previous investments in Sofant, representing 25.7% of its paid up capital, and is represented on its Board by Dr. Iliev.

Commenting on the contract, David Wither, CEO of Sofant Technologies, said: "We are honoured that the UKSA and the ESA have agreed to support the commercialisation of Sofant's technology. They have a clear understanding of the technical challenges faced by the satellite communications industry as it seeks to exploit the promise of a new generation of satellite networks. They also share our belief that a scalable technology platform which solves power consumption and heat problems in phased array antennas is critical for the future wireless communications. We look forward to working with the team at the ESA throughout this project.

"This announcement comes as Sofant Technologies gears up for its first Series A funding round, to scale its base in Edinburgh and triple its headcount from 16 to 48 over the contract period. This will create numerous highly-skilled jobs within Scotland's engineering sector, from antenna and product design to component, product and software engineering."

Dr. Ilian Iliev, CEO of NetScientific commented: "The UK Space Agency and European Space Agency's support for Sofant further demonstrates the strength of NetScientific's investment thesis - combining our capital light investment approach with access to non-dilutive public funding in high-impact sectors. The non-dilutive funding will support Sofant in going through the next major value inflection points, help attract major industry partners, while limiting dilution to shareholders."

For more information, please contact:

NetScientific	Via Walbrook PR
Ilian Iliev, CEO
WH Ireland (NOMAD, Financial Adviser and Broker)
Chris Fielding / Darshan Patel	[phone]
Walbrook PR
Nick Rome/ Paul McManus/ Nicholas Johnson	07748 325 236, 07980 541 893 or 07884 664 686

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:  www.netscientific.net ).

About Sofant Technologies

www.sofant.com

Sofant Technologies is a cutting-edge radio technology company based in Edinburgh, Scotland. The company is applying the unique properties of its patented RF MEMS technology to develop an extremely low power, low-cost platform which solves the most pressing power consumption and heat problems in satellite communications and 5G antenna systems. Sofant's ability to use the fabless semiconductor business model and established volume production methods places the company in a unique position to offer its customers game-changing performance with guaranteed scalability and low cost.

Sofant aims to revolutionise satellite communications and to make high band 5G a reality.

 

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