Mercia Asset Regulatory News (MERC)

Mercia Asset Management PLC

("Mercia" the "Company" or the "Group")

Mercia portfolio company MIP Diagnostics raises £5.1m to scale 'polymer antibody' production and joins Mercia's direct investment portfolio

Mercia Asset Management PLC (AIM:MERC), the proactive, regionally focused specialist asset manager, is pleased to announce that its fund portfolio company MIP Diagnostics Limited ("MIP") has completed a £5.1million funding round to scale production of its polymer antibodies, a significant milestone for the company. As part of the funding round Mercia has committed £0.5million from its own balance sheet alongside the Business Growth Fund, Downing Ventures, Calculus Capital and MIP management. Mercia's initial fully diluted equity percentage will become 4.6%.

Founded in 2015 as a spin-out from the University of Leicester, MIP has developed a proprietary process for the manufacture of Molecularly Imprinted Polymers, which offer a synthetic, more robust, alternative to antibodies, a circa $85bn market and growing. The nanoMIP format can withstand harsh chemicals, extremes of temperature and pH and, unlike real antibodies, is very stable and has a long shelf life without refrigeration. It is suitable for a range of applications including diagnostics, healthcare and bioprocessing, and the company is evaluating an innovative application for a COVID-19 diagnostic.

Mercia first invested in the company at its inception via its third-party managed funds and this is the first investment in MIP from Mercia's balance sheet.

Dr Mark Payton, CEO of Mercia Asset Management, said: "Antibodies represent a huge global market, yet they are costly to produce and have inherent limitations. MIP's 'non-biologic antibodies' offer a robust alternative approach. Mercia was the founding investor in the business via its third-party funds, and we have actively supported its development since. We are pleased to be part of a meaningful syndicate to scale the business, which has the potential to disrupt this fast-growing global market."

Stephane Argivier, CEO, said: "This significant investment round is a strong endorsement of our technology. Molecularly Imprinted Polymers offer many advantages and enable new applications that push the limit of what was previously possible. This investment will enable us to rapidly expand our operations to capitalise on these opportunities and bring exciting new products to the market."

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About Mercia Asset Management PLC

Mercia is a proactive, specialist asset manager focused on supporting regional SMEs to achieve their growth aspirations. Mercia provides capital across its four asset classes of balance sheet, venture, private equity and debt capital: the Group's 'Complete Connected Capital'. The Group initially nurtures businesses via its third-party funds under management, then over time Mercia can provide further funding to the most promising companies, by deploying direct investment follow-on capital from its own balance sheet.

The Group has a strong UK regional footprint through its eight offices, 19 university partnerships and extensive personal networks, providing it with access to high-quality deal flow. Mercia currently has c.£800million of assets under management and, since its IPO in December 2014, has invested over £90million across its direct investment portfolio.

Mercia Asset Management PLC is quoted on AIM with the epic "MERC".

About MIP Diagnostics Ltd.

MIP Diagnostics Limited develops and manufactures nanoMIPs, linear MIPs, bulk MIP and Rationally Designed Polymers using its proprietary processes. Molecularly Imprinted Polymers are 'synthetic' affinity reagents and the nanoMIP format provides a more robust alternative to antibodies, typically with similar or greater affinity coupled with additional unique characteristics.