TIDMNSCI
NetScientific PLC
15 June 2022
RNS REACH
NetScientific plc
("NetScientific", the "Group" or the "Company")
Q-Bot Limited ("Q-Bot") secures GBP1.6m of investment to fund
growth
NetScientific plc (AIM: NSCI), the international life sciences
and sustainability technology investment and commercialisation
Group announces that portfolio company Q-Bot has successfully
closed a GBP1.62m investment round to fund the next stage of its
growth. The additional funds will allow Q-Bot to accelerate the
rollout of its unique patented solution of using robots to apply
underfloor home insulation across the UK, and meet growing overseas
demand for Q-Bot's solution.
Q-Bot is a London-based award-winning robotics and AI company
that has pioneered cutting edge technology and digital solutions
for the inspection, maintenance, insulation and upgrade of
buildings and homes. In the year ended 31 March 2022, Q-Bot
generated sales of GBP2.2m, and expects significant growth in sales
as market deployment accelerates.
With this funding, Q-Bot will continue its strong growth to meet
the rapidly increasing market demand for its offering to UK social
and private landlords in the context of rising energy bills and
move to decarbonisation of UK housing. Q-Bot's growth is through an
expansion of its network of Accredited Installation Partners,
industrialising robot manufacturing at scale, growing sales into
the UK and international markets.
This transaction follows a GBP2.8m deal in December 2021, which
included the setup of a Convertible Loan Facility, and the purchase
of equity interests from early Q-Bot investors and a departing
founder of Q-Bot. During the period there were also several changes
to the Q-Bot Board and management team, and a Board led strategy
review process. Since then the Q-Bot team has worked hard to
reposition the business to capture the opportunities and made
progress in all areas during the first half of 2022.
This round, which comprised conversion of GBP762,000 of loan
notes (of which GBP500,000 was provided by NetScientific as
announced on 21 December 2021) and GBP900,000 of new equity,
results in the direct equity holding in Q-Bot by NetScientific
increasing from 18.3% to 20.6%, in addition to EMVC's Capital Under
Advisory representing 16.7%. NetScientific's 20.6% Q-Bot direct
stake is valued at GBP2.77m based on this funding round- a gain of
approximately GBP1.45m in less than one year.
John Clarkson, Chairman of NetScientific commented: " We are
delighted to have an active role in Q-Bot, which continues to make
excellent progress in developing and applying its robotics
technology, generating revenue and meeting important market needs.
NetScientific has made a significant direct investment, secured
substantial syndicated funding and provided management support, to
enhance the growth of this enterprising UK company. We look forward
to participating in its planned scale-up and further
commercialisation, with exciting prospects in the broader
application of robotics and AI. This follows NetScientific's stated
strategy of deeper involvement in selected portfolio companies,
with strong prospect for both UK and international expansion,
offering the potential for greater shareholder returns"
Dr. Ilian Iliev, CEO of NetScientific and Board member at Q-Bot
commented: "Q-Bot's robotics as a service offering is at the right
place and right time, providing a massively scalable solution not
only to the transition to a low-carbon economy, but to the current
crisis in growing households energy bills and energy security. This
investment exemplifies NetScientific's capital light investment
model into exciting technology companies, leveraging EMVC
syndication alongside our direct funding, helping our portfolio
companies accelerate growth - with significant upside possible as
the company accelerates market traction."
The full text of the announcement from Q-Bot is reproduced
below.
###
Q-Bot secures GBP1.6m of investment to accelerate sales of its
robotics-as-a-service solution for insulation retrofit of housing
in the UK and internationally
Tuesday 14(th) June 2022 - Q-Bot, the UK's leading developer of
robots for use in the construction and retrofit industry, has
successfully closed a GBP1.62m investment round to fund the next
stage of its growth, primarily from existing investors. The
additional funds will allow Q-Bot to accelerate the rollout of its
unique solution of remotely applying underfloor insulation across
the UK and engage with growing overseas demand for Q-Bot's
solution. Deeptech VC specialist EMV Capital led the round, with
participation of their parent company NetScientific PLC.
Using robotics and AI, Q-Bot develops innovative solutions that
can survey, maintain, and upgrade existing buildings. Q-Bot created
intelligent robots to apply underfloor insulation underneath
suspended floors. This unique method improves the energy efficiency
of properties and households' comfort with minimal disruption to
their daily life. Q-Bot's solution is critically important in
helping UK and other nations' households face the unprecedented
rise of heating cost for this winter. Retrofitting a suspended
floor has many benefits: it saves money on energy bills, improves
daily comfort, reduces carbon footprint, and increases the value of
a property. This also means a healthier and warmer home to live in,
contributing to tackling fuel poverty and working towards net zero
carbon.
With this funding, Q-Bot will continue its rapid growth to meet
the increasing demand for its offering in the UK and overseas. As
the UK's de facto leader in construction and retrofit robotics,
Q-Bot works with both social and private landlords, as well as
homeowners, having now insulated more than 3,000 properties.
Q-Bot's growth is through an expansion of its network of
Accredited Installation Partners, industrialising robot
manufacturing at scale. The company offers a 'Robot as a Service',
a scalable model, to locally successful, high quality Accredited
Installation Partners. There are tens of millions of homes
worldwide that need Q-Bot's underfloor insulation robots.
Collaborative and creative partnering is crucial to delivery at
scale. Over the past two years, Q-Bot has successfully developed
several partnerships in the UK, with additional partners going
through training. Since October 2021, Q-Bot is working overseas,
and has partnered with a large national insulation company and a
local installer in France. This is a major achievement for the
company, opening its service to even more properties in need of
underfloor insulation that would be impossible otherwise to
insulate and meet retrofit energy standards.
"We are pleased that following the strategy review and changes
to the company launched by the Board in 2021, we are now seeing
accelerated growth for the business in terms of sales, the
on-boarding of a series of key partners and continued investor
support. We recognise the challenges associated with rising energy
bills and are fortunate to be part of worthwhile solutions to
reducing energy demands and associated emissions and costs. We are
looking forward to being able to offer our quality assured
underfloor thermal insulation to even more homes in the coming
year." - Peter Childs FREng, Chair Q-Bot Ltd and Professor,
Imperial College London
Dr. Ilian Iliev, Managing Director of EMV Capital said: "Q-Bot's
robotics as a service offering is at the right place and right
time, providing a massively scalable solution not only to the
transition to a low-carbon economy, but to the current crisis in
growing households energy bills and energy security. We're pleased
also with growing international interest in the technology, which
can see a further step-change in growth in future years."
###
For more information, please contact:
NetScientific Via Walbrook PR
John Clarkson, Chairman
WH Ireland (NOMAD, Financial Adviser
and Broker)
Chris Fielding / Darshan Patel +44 (0)20 7220 1666
Walbrook PR
Nick Rome/ Paul McManus 07748 325 236 or 07980 541 893
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 in the UK, Europe and USA, as
well as globally.
Since the adoption of the New Strategy in 2020, the Group has
nearly trebled its portfolio from 8 to 22 companies, either through
subsidiary, direct balance sheet investment or capital under
advisory.
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 third 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 Q-Bot ( www.q-bot.co ):
Q-Bot Limited, was formed in 2012 by the multi-award-winning
architect Tom Lipinski and Professor Peter Childs FReng from
Imperial College London, with the goal of using robotics and AI to
transform the construction industry. Q-Bot's solutions enable the
delivery of innovative new services for the inspection, maintenance
and upgrade of buildings which empower workers, improve safety, are
cost-effective, and efficient. Q-Bot is revolutionising the
construction industry by connecting the built environment with
robotics and AI, to rethink processes that have remained unchanged
for hundreds of years. The company is backed by Net Scientific PLC,
EMV Capital, EIS investment platform Wealth Club, and other
investors.
Q-Bot has already brought to market a unique retrofit solution,
using a robotic device to apply insulation under suspended floors
of existing homes, insulating over 2,500 homes in the process. The
solution is cheaper, performs better, and has none of the
disruption of more traditional methods. Through its work with local
councils and housing authorities, for whom it is increasingly
becoming the de facto standard, Q-Bot's solution has been proven to
reduce fuel poverty by improving the energy efficiency of homes,
whilst substantially reducing their carbon footprint- cementing the
company's strong ESG credentials. Q-Bot has also grown to work with
private customers, and developed a scalable and successful model
offering the service to Accredited Installation Partners ('Robot as
a Service'). The solution is TrustMark certified and fully
accredited by the BBA.
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