NetsScientific PLC (LON:NSCI) received a strong response to its share placing, raising £7.7mln, which was around 10% more than originally anticipated.
A total of 5.96mln shares were placed with new and existing investors at 130p a spell.
Speaking to Proactive, chief executive officer Dr Ilian Iliev said he was delighted with the response, saying it was a strong validation of the company’s model.
Iliev felt the enthusiastic response reflected what NetScientific’s management team sees as the gap between the company’s market capitalisation and the fair value of the business.
That gap has closed markedly over the last month with the shares surging from around 55p to the current level of 136.5p on the back of some positive news flow but Iliev believes the market valuation still has a bit of catching up to do.
The funds will enable NetScientific to accelerate its plans for the business and pursue attractive trans-Atlantic opportunities in the healthcare and sustainability sectors in a post-COVID environment.
“We call it building a transatlantic bridge. A specific pillar of our growth plans is enabling our UK companies to land in the US but equally, our US portfolio companies are keen to land in the UK and build relationships.
“It’s a two-way street,” Dr Iliev said.
John Clarkson, the executive chairman, said that after a year of “tremendous progress” that had seen a turnaround in the business, the company is now well set for the future.
“We are delighted to have the support of existing shareholders and welcome new investors in this successful placing, which reinforces and further enhances the business prospects,” Clarkson said.
— adds management quotes and results of the placing —