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(Alliance News) - NetScientific PLC on Wednesday said it will invest an additional USD650,000 in PDS Biotechnology Corp.
On Wednesday, biopharmaceutical company PDS Biotechnology Corp announced a fundraise of around USD12 million through the issue of 9.2 million shares. NetScientific said it would purchase 500,000 of the new shares to be issued.
NetScientific currently holds 542,000 PDS shares, representing around 10% of PDS' undiluted share capital. Following the completion of the new issue, it will hold around 1 million shares, representing 7.2% of PDS' issued share capital.
The healthcare investment firm said it has secured a GBP500,000 loan facility with Beckman Group to fund its investment into PDS Biotechnology. The 18-month loan bears an interest rate of 10% per annum on drawn-down amounts and 3.0% per annum on undrawn amounts, with an arrangement fee of 1.0%. The loan can be extended for an additional six months and is secured on NetScientific's entire interest in PDS.
Beckman Group is associated with NetScientific shareholder M A Lawson. Lawson holds 30% of NetScientific's issued share capital.
On Tuesday, NetScientific said it will have one of its representatives on the board of PDS Biotechnology should it participate in the New York-listed firm's proposed fundraise.
NetScientific stock was untraded on Wednesday afternoon in London, last quoted at 5.25 pence each.
By Ife Taiwo; ifetaiwo@alliancenews.com
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