Netscientific Share Discussion Threads

[kingston78] 22/6/2023 08:50

In the announcement this morning, the following paragraph has caught my eye,

"Alongside the new investors into Vortex, NetScientific converted its GBP0.4 million loan into equity. Following completion of the fundraising, the total equity holding of NetScientific in Vortex is now 24.98%, which equates to a post-investment fair value of GBP2.8 million, an increase of 300% from the GBP0.7 million reported as at 31 December 2022. In addition, following the introduction of investors to Vortex by EMVC (the wholly-owned subsidiary, and the corporate finance and venture capital arm, of NetScientific), the NetScientific capital under advisory with Vortex is 13.90% of the issued share capital."

In my opinion this is an excellent corporate deal not only to introduce new investors to Vortex raising funds but also to put a value that external investors are willing to invest. Assuming NSCI can offload its shareholding in Vortex at this price it will have made 300% from £0.7 million to £2.8 million (a profit of £2.1 million). Vortex now has sufficient funds to carry on its business and NSCI makes a huge unrealised profit, without putting further sums of money into Vortex itself. This is magic.

[blakieboy7] 20/6/2023 13:50

PDS Biotech to be Added to Russell 2000® and Russell 3000® Indexes Effective June 26, 2023

[loafofbread] 17/6/2023 12:17

A hugely significant week for us here at SageTech Medical with several important milestones achieved, including our first commercial sales of our waste anaesthetic gas capture system to the Manchester University NHS Foundation Trust, signing a distribution agreement with Dräger UK and winning the Med-Tech Innovation Sustainability Award.

The momentum for our Crowdcube fundraise has picked up and we’re getting closer to hitting our target! With ONLY 5 DAYS TO GO, there’s still time to buy shares in our business and support our commercial growth!

Don’t miss out on the opportunity to be a part of SageTech Medical’s mission to prevent an estimated 3.4 million tonnes CO2 equivalents polluting the atmosphere each year from waste anaesthetic gases.

Click here to buy shares from as little as £13: hxxps://buff.ly/3MimElH

[kingston78] 15/6/2023 09:20

Let the share price fall further as market makers mark down the price significantly on low sell volume. I will definitely top up my holding next time round.

Let it fall to 1 p and I will bid for the company myself.

[sev22] 15/6/2023 07:54

NetScientific portfolio company PDS posts improved efficacy data from cancer trial.

[blakieboy7] 14/6/2023 17:09

Well that's better - broken through 70p

[kingston78] 13/6/2023 14:19

I was tempted to buy at 60 p but hesitated to put too much money in one basket. The purchase of shares by a Director recently at below 60 p was timely.

[blakieboy7] 13/6/2023 13:47

Why does it take commentary from Simon Thompson to point out the obvious? Strange times we live in!

[sev22] 13/6/2023 08:21

This life sciences company is a classic value play.

A company that invests in early-stage life sciences and technology companies is priced two-thirds below its portfolio valuation.

June 12, 2023
By Simon Thompson

*Portfolio valuation rises 35 per cent to £41.8mn (178p)

*EMV Capital profitable on increased revenue of £1.2mn

*£23.5mn capital under advisory

Annual results from NetScientific (NSCI:61p) not only reveal solid operational progress, but a portfolio valuation almost three times higher than the Aim-traded investment company’s market capitalisation. Netscientific invests in early-stage life sciences and technology companies and earns fees from syndicating investments through its corporate finance boutique, EMV Capital.

Reported net asset value (NAV) increased by more than a third to £25.2mn (108p) in 2022, but this only tells part of the story as the accounting valuations used are conservative. The directors’ portfolio valuation, which uses the fair valuations of the portfolio of 24 investee companies, increased by more than £10mn to £41.8mn (178p).

For instance, the reported NAV fails to reflect the value embedded in wholly-owned EMV Capital, a profitable investment advisory boutique that syndicates investments between financial and corporate investors, taking carried interests in the investments it syndicates. Based on an average two times venture capital return on the £23.5mn third-party investment portfolio subject to carried interests, EMV could potentially generate £4.7mn (20p a share) of profits from the capital under advisory.

It’s not a pie-in-the-sky valuation either. For example, EMV has a carried interest on 30.9 per cent of the shares in portfolio company Q-Bot. The London-based robotics and artificial intelligence company has developed and patented an energy-saving robotic system used for applying insulation in tight spaces and suspended floors (to reduce heat loss and prevent draughts, damp and mould). It accounts for almost 20 per cent of EMV’s total capital under advisory and is clearly valuable. That’s because Netscientific’s directly held 17.6 per cent stake in Q-Bot has increased 2.5 times in value to £3.8mn (16p) since mid-2021 based on the read through valuation of Q-Bot’s latest funding round.

Also, Netscientific holds a 4.4 per cent listed stake in PDS Biotechnology Corporation (US: PDSB), a $181mn market capitalisation clinical-stage immunotherapy company which is developing a pipeline of cancer immunotherapies and infectious disease vaccines based on its proprietary Versamune T-cell activating technology platform. The holding of 1.33mn shares is worth £6.3mn (27p) at current market prices. That is well above the £4mn original cost of the investment, albeit it is down on the £14.7mn valuation in the 2022 accounts.

Sum-of-the-parts valuations.

Effectively, the stakes in Q-Bot and PDS, and EMV’s carried interests, are cumulatively worth more than NetScientific’s own market capitalisation of £14.3mn. That leaves investments in more than 20 other investee companies in the price for free even though the directors value them at £23.3mn (99p).

Majority-owned US‑based diagnostics company Glycotest and respiratory medical technology company, ProAxsis, account for £14.5mn of that valuation and were responsible for £2.2mn of Netscientifc's £3.7mn pre-tax loss last year as well as almost £1.9mn of direct funding. Importantly, both investee companies are raising external funding for their businesses, so massively reducing the cash requirements on Netscientific.

So, having suggested buying the shares, at 64p, in my 2023 Bargain Share Portfolio, I continue to believe the deep share price discount to the underlying portfolio valuation is worth exploiting especially as the directors aim to release value from investee companies through liquidity events. BUY.

[loafofbread] 09/6/2023 18:25

SageTech Medical announces distribution agreement with Draeger UK
Jun 9, 2023


SageTech Medical is pleased to announce the signing of a distribution agreement with Draeger Medical UK Ltd.

The agreement paves the way for Draeger UK’s NHS Supply Chain customers to purchase SageTech’s leading anaesthetic gas capture machine.

SageTech Medical launched the SID-Dock waste anaesthetic gas capture machine in January 2023, which is a UKCA Marked, Class 1 Medical Device for the safe and sustainable capture of volatile anaesthetic gases, addressing the unmet need to prevent 2% of NHS carbon emissions each year.

Iain Menneer, CEO of SageTech Medical said “This agreement makes it simple for our mutual NHS customers to gain access to our innovative gas capture technology. The agreement aims to accelerate our mission to help healthcare providers prevent the significant pollution caused from the use of these vital anaesthetic gases and reduce the raw materials used and associated carbon emission in their virgin manufacture”.

Matthew Bedford, Managing Director Sales & Service, Draeger UK & Ireland said “We are very pleased to enable Draeger’s UK customers to access SageTech’s gas capture solution to help in the ongoing challenge of reducing the potential environmental impact from waste anaesthetic gases. We have enjoyed our collaboration with the SageTech Medical team and look forward to this agreement supporting our customers to make significant steps towards Net Zero”.



Notes:

SageTech Medical Equipment Ltd was started in 2015 to develop innovative solutions to environmental problems, initially in human and veterinary healthcare. SageTech Medical launched its solution in January 2023 to prevent the release of millions of tonnes of CO2 equivalents of waste anaesthetic into the atmosphere each year from hospitals around the world.

Dräger is an international leader in the fields of medical and safety technology. Since 1889, Dräger products protect, support and save lives. The Dräger Group is currently present in over 190 countries and has more than 16,000 employees worldwide.

[loafofbread] 09/6/2023 18:22

Sagetech just finishing a crowd fund that values it approx £17M, so our fair value of $0.9M is bang on.

[loafofbread] 09/6/2023 09:09

Huge congratulations to all those selected as finalists for the Annual EISA Awards 2023. Winners will be announced at the House of Lords on Thursday 22nd June.

Thank you to everyone who entered this year. Our judges saw more than 100 entries and the standard of competition has been extremely impressive. Best of luck to all those shortlisted!

Best EIS Investee Company Sponsored by Guinness Ventures

Integrated Graphene Medwise AI
Q-Bot Novai
GenoME Diagnostics Scan.com
Banked unhurd

[loafofbread] 07/6/2023 09:10

Thats a start.

If a couple of other chaps could step forward please.

[senttothegallows] 06/6/2023 12:59

In pre market PDSB is circa £8m of Netscientific £13.4m current share price is incredibly low given the recent results IMHO

[kingston78] 06/6/2023 11:21

I did not add more shares here even though I could. No one has a bottomless pocket nor is it wise to put too much in a basket.

However, I would comment that the share price is gradually climbing up, clawing back the losses. Even if PDSB was at US$6 a share NSCI was previously higher than now, so if PDSB stays at US$6 there is no reason not for NSCI to be much higher especially it has now more mature investments.

I think it will crystallise profit on one or more of its investments in order to fund its corporate expenses rather than placing shares at a ridiculously low price.

[blakieboy7] 06/6/2023 09:56

If anyone else is interested in the Twitter post - https://stkt.co/PPRjSoWX

[loafofbread] 06/6/2023 09:38

He has withdrawn his tweet saying he 'misunderstood' the data.

All brokers have confirmed that all data stands and share price targets stay the same.

PDSB CC 8am ET where Frank will settle this.

Very clever bear raid that has cost us a packet.

[bumpa33] 06/6/2023 09:23

Search @jacobplieth on twitter. Would appear he’s now backtracking somewhat - after the furore he’s caused..!

[snape] 06/6/2023 09:20

If search PDSB on Twitter you can see the tweet and the subsequent commentary including deletion comment.

[lazygun] 06/6/2023 09:16

blakie - do you have a link to the tweet. id be interested to see what caused the fuss....

l

[kingston78] 06/6/2023 08:52

When PDSB goes up NSCI hardly moves forward. When PDSB goes down NSCI goes down. There is no logic to the share price movement of NSCI.