Imperial Innovations Group Regulatory News (IVO)

14 July 2015

Imperial Innovations Group plc

Innovations obtains further £50m loan facility from EIB to strengthen investment in the UK biotech and life science sector

Imperial Innovations Group plc (AIM: IVO; 'the Group', 'Innovations') has entered into another loan facility from the European Investment Bank (EIB) to support Innovation's investments in the UK biotech and life science sector. The £50 million committed loan facility is available for draw down over a period of two years and is repayable over a maximum of nine years following the date of the first draw down.

This is the second facility that Innovations has secured from the EIB and follows a £30m loan agreed in July 2013.

This additional funding from the EIB will enable Innovations to increase the rate and scale of its investment in both existing and new portfolio companies, in particular in the therapeutics and medtech sectors. As of 31 January 2015, the Group's portfolio of companies was valued at £262m, with these sectors representing 72.9% of that value.

As of the same date, the Group had £167.8 million available for investment, including the £15.0 million second tranche of the first EIB loan, which was drawn down in June 2015.

Russ Cummings, Chief Executive Officer, Imperial Innovations, said:

"Since securing the first EIB facility in July 2013, the support of the EIB has allowed us to invest more than £62m in early-stage life sciences, across 23 companies, including seven new additions to our portfolio.

"Originally we planned to commit this expenditure over a four year period, but we have been able to execute the plan in only two, by virtue of the increasing maturity of our portfolio, as well as the rich opportunities derived from our extensive network of academics, entrepreneurs, management teams and co-investors within the "Golden Triangle" of London, Oxford and Cambridge.

"To secure a second facility from the EIB is a clear endorsement of the quality, maturity and breadth of our portfolio, as well as our expertise in investing and developing both early-stage and developing businesses."

Jonathan Taylor, European Investment Bank Vice President said:

"Investment in knowledge driven and highly skilled sectors is crucial to strengthen Europe's long-term global competitiveness. The European Investment Bank is committed to supporting investment that harnesses research to create skilled jobs and commercial success.

"Imperial Innovations has set a benchmark for transforming cutting-edge research into some of the UK's most exciting early stage biotech and medtech companies. The European Investment Bank is pleased to again support Imperial Innovations in helping new companies emerge from the world-class research emanating from the UK's life science sector.

"I am confident that this new loan will allow the Group to increase its engagement and ultimately accelerate the translation of outstanding research into new and better treatments and techniques for patients."

The strengthened cooperation between the European Investment Bank and Innovations reflects the EIB's broader engagement to support innovation and research investment across Europe, including in the UK. The new loan is part of the dedicated InnovFin initiative to improve access to finance for research and innovation.

Last year the EIB provided EUR 13.3 billion for investment to support innovation, skills and competitive, including support for spin-off companies and digital networks. EIB has recently started lending under the European Fund for Strategic Investment Initiative expected to support EUR 315 billion of new innovation, infrastructure and SME investment.

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Notes to editors

About Imperial Innovations - www.imperialinnovations.co.uk 

Imperial Innovations Group plc creates, builds and invests in pioneering technologies developed from the academic research within the 'Golden Triangle' broadly bounded by London, Cambridge and Oxford, which is home to the UK's four leading research-intensive universities.

This area is home to many new technology companies through its proximity to the academic communities of Imperial College London, the University of Cambridge, the University of Oxford and University College London, as well as other leading research institutions.

Imperial College London, the University of Cambridge, the University of Oxford and University College London collectively have research income of £1.4 billion per annum and are ranked as four of the top ten Universities in the world (source: QS World University Rankings 2014/15).

Innovations supports scientists and entrepreneurs in the commercialisation of their ideas through the licensing of intellectual property, by leading the formation of new companies, providing facilities in the early stages, providing investment and encouraging co-investment to accelerate development, providing operational expertise and recruiting high-calibre management teams. It also runs an incubator in London that is the initial home for many of its technology spin-outs.

Since admission of its shares to trading on AIM in 2006, Innovations has raised more than £346.0 million of equity from investors, which has enabled it to invest in some of the most exciting spin-outs to come out of UK academic research. In addition, the Group has agreed £80.0 million in loan facilities from the European Investment Bank (EIB) for investment in life sciences businesses.

During the period from admission on AIM up until 31 January 2015, Innovations has invested a total of £198.3 million across its portfolio companies, which have raised collectively investment of £926.8 million rising to £1.0 billion including post period end investments and commitments.

About the European Investment Bank - www.eib.org/press

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

Over the last 5 years the European Investment Bank has provided more than GBP 1.5 billion for investment to improve campuses at 28 universities across the UK. Last year the EIB provided GBP 6 billion to support more than GBP 18 billion of long-term investment in transport, energy, water, hospital and innovation infrastructure and private sector investment across the country.