Business
PDS equity issue and related party transaction
PDS equity issue and related party transaction.
About this update from Emv Capital Plc
[{"type":"text","content":"\n \nRNS Number : 7809C NetScientific PLC 12 February 2020 \n\nNetScientific plc\n \n(\"NetScientific\" or the \"Company\")\n \nPDS Biotechnology equity issue and related party transaction\n \nNetScientific plc (\"NetScientific\", AIM:NSCI) the transatlantic healthcare IP commercialisation group, announces that its portfolio company PDS Biotechnology Corporation (\"PDS\") (Nasdaq: PDSB) has today announced an issue of 9,230,770 new shares of common stock to raise gross proceeds of approximately US$12 million (\"New Issue\"), before deducting underwriting discounts, commissions and other offering expenses. The offering is expected to close on Friday, February 14, 2020, subject to customary closing conditions.\n \nNetScientific currently owns 542,000 shares of PDS' common stock, representing approximately 10.28% of its undiluted share capital. The Board of NetScientific believes that PDS has strong prospects. It has therefore agreed to subscribe US$650,000 for 500,000 shares of common stock in the New Issue. Upon completion of the New Issue, NetScientific expects to own 1,042,000 shares of PDS' common stock, representing approximately 7.18% of the undiluted share capital.\n \nNetScientific has cash to fund this investment, however for prudent financial management is entering into an 18 month secured £500,000 loan facility with Beckman Group. The facility, which incurs interest of 10.0% pa on drawn amounts and 3.0% pa on undrawn amounts and has an arrangement fee of 1%, can be extended by mutual agreement for an additional 6 months, and is secured on the whole of NetScientific's interest in PDS.\n \nAs Beckman Group is associated with M A Lawson, who is interested in 29.98 % 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.\n \nFor more information, please contact: \nNetScientific Tel: 020 3514 1800 \nIan Postlethwaite, CEO and CFO \n \nW...