NetScientific is poised to acquire EMV Capital in an all-share deal after appointing the latter's managing director as its chief executive in May.
UK-based commercialisation firm NetScientific has agreed to acquire investment firm EMV Capital in an all-share swap subject to approval by both parties.
The deal comes after Ilian Iliev, managing director of EMV Capital, was appointed chief executive of NetScientific in May 2020 on a part-time basis.
A general meeting to sanction the acquisition is expected to take place on August 24.
NetScientific will assume EMV’s foothold in sectors including industrial tech, energy, smart cities and healthcare.
It will also regain majority stakes in two health tech spinouts from University of California, Los Angeles it had sold to EMV Capital in March 2019: Vortex BioSciences and Wanda.
Ilian Iliev gave an interview to GUV shortly after the acquisition to praise EMV Capital’s model of syncing financial and corporate investors while providing strong hands-on support for its portfolio businesses.
Now that strategy is set to inform NetScientific’s future approach, according to its board of directors, as it looks to recover momentum lost with a tumultuous cash squeeze in 2019 that culminated with Vortex and Wanda’s disposal.
NetScientific was at one stage considering delisting from the Aim stock exchange, but ultimately cut operational spending sufficiently to slash almost half from its annual pre-tax deficit during 2019.
John Clarkson, chairman of NetScientific, said: “The board identified through its recent strategy review strong underlying asset value and significant growth opportunities for the business, which it believes has been further increased following Covid-19.
“Accordingly we propose to adopt a new strategy, with proactive management to realise that potential and maximise shareholder value.”
NetScientific also unveiled plans for a new share issue of around £2.3m ($3m), made up of over 3.5 million shares each priced at $0.86.
