Last checked at 16 Oct 2018 07:00
RNS REACH | 16 October 2018 |
Mercia Technologies PLC
("Mercia")
Mercia announces new Emerging Star investment into Locate Bio
Mercia Technologies PLC (AIM: MERC), the national investment group focused on the identification, creation, funding and scaling of innovative technology businesses with high-growth potential from the UK regions, is pleased to announce a new direct investment of £0.5million into Locate Bio Limited ("Locate").
Locate is a specialist regenerative medicine and medical device company based in Nottingham. As one of the leaders in its field, the Locate team has been working for over a decade on developing a novel drug delivery system (TAOS®) and associated gene editing technologies (IntraStem), with an initial focus on orthopaedic applications. Its lead product is a treatment for osteomyelitis, for which Locate has partnered with a major European medical device developer. In addition, it is developing a product to precisely control bone growth, a significant clinical problem with a $7.0billion worldwide market. Mercia's investment will be used to further expand Locate's existing product portfolio as well as new product opportunities utilising its IntraStem technology. The global regenerative medicine market is estimated to be worth $20.0billion and is forecast to be growing at a CAGR of 26.0%.
Following this initial investment Mercia holds a 6.0% equity stake in Locate. This direct investment follows on from an initial investment by Mercia's third-party managed funds.
Dr Ian Wilding, Chairman of Locate, said: "The investment from Mercia is a strong endorsement of Locate's technology platform and pipeline of regenerative medicines. These funds will enable us to conduct key preclinical studies to help consolidate our position as a next generation cell and gene therapy company."
Julian Viggars, Chief Investment Officer of Mercia Technologies PLC, said: "Locate demonstrates how Mercia can support the coupling of compelling, proprietary, university-derived technology with a strong team and clear market advantages developed within the Midlands, initially through our managed funds. The team at Locate has now successfully moved from the research and development phase to commercialisation. We have been impressed by this transition and foresee considerable potential for delivering shareholder value in the medium term."
For further information, please contact:
Mercia Technologies PLC | +44 (0)330 223 1430 |
Mark Payton, Chief Executive Officer | |
Martin Glanfield, Chief Financial Officer | |
www.merciatech.co.uk | |
Cenkos Securities plc | +44 (0)20 7397 8900 |
Stephen Keys (NOMAD and Joint Broker) | |
Canaccord Genuity Limited | +44 (0)20 7523 8000 |
Simon Bridges, Emma Gabriel (Joint Broker) | |
Buchanan | +44 (0)20 7466 5000 |
Bobby Morse, Chris Lane, Stephanie Watson | |
www.buchanan.uk.com |
About Mercia Technologies PLC
Mercia is a national investment group focused on the funding and scaling of innovative technology businesses with high growth potential from the UK regions. Mercia benefits from 19 university partnerships and offices across the Midlands, the North of England and Scotland providing it with access to high quality, regional deal flow. Mercia Technologies PLC is quoted on AIM with the epic "MERC".
Mercia's 'Complete Capital Solution' initially nurtures businesses via its third-party funds (now with circa £400million under management) and then over time Mercia can provide further funding to its 'Emerging Stars' by deploying direct investment follow-on capital from its own balance sheet. Since its IPO in December 2014, Mercia has invested over £63million directly across its portfolio of 'Emerging Stars'.