Netscientific Regulatory News (NSCI)

Strictly embargoed until: 07.00, 3 April 2023

NetScientific plc

("NetScientific" or "NSCI" or the "Company" or the "Group")

Business and Portfolio Update and Board Changes

London, UK: NetScientific plc (AIM: NSCI), the investment and commercialisation group with an international portfolio of innovative life science, sustainability and industrial technology companies, is pleased to provide a business update for the year ended 31 December 2022 and the period to date, as well as an update on its Board changes.

Highlights of 2022

· Including EMV Capital, its VC firm, the Group now has a portfolio of 24 companies.

· The Group expects a significant increase in Fair Value as at 31 December 2022.

· Across the Group's portfolio, an aggregate amount of c.£70 million was raised through equity and venture debt by 18 companies.

· The Group's 'capital light' investment model saw it make modest direct equity investments of c.£0.6 million, together with £5.3 million of third party 'advised' investments in which it has a carried interest, across 11 portfolio companies.

· A short-term proprietary trade profit of £0.3 million on facilitating the sale of a £0.5 million position in a portfolio company, highlighting the Group's intention to move progressively to a more 'evergreen' investment model, and an ability to generate liquidity in private company investments.

· Fees generated by EMV Capital covered the majority of its costs, whilst providing infrastructure and services to the Group and its portfolio companies.

· H2 2022 saw a marked increase in activity, with several portfolio companies achieving significant operational milestones and key fundraisings.

· Strengthened Board to drive strategic growth ambitions, and key strategic hires to expand and deepen transactional and portfolio management capabilities.

· Final results for the year to 31 December 2022 expected to be announced by the end of May 2023.

Update on Chair search and board changes

The Group's search for a new Chair has progressed well. The Board has met a variety of high calibre candidates and is working through a short list of further meetings in this regard. It remains on track to announce the appointment of a new Chair ahead of the annual general meeting.

After seven years with NetScientific, Professor Stephen Smith has indicated his wish to retire from the Board and he will accordingly not stand for re-election at the next annual general meeting, likely in June 2023. It is anticipated that he will remain an adviser to a number of the Group's life sciences portfolio companies. Further information will follow in due course.

Portfolio highlights of 2022

During the period, a number of the Group's portfolio companies raised growth financing and made substantial progress on their business plans. Key highlights include:

· ProAxsis Limited - 100 per cent. direct holding - the company won further pharma services contracts and grant support for its new products programme, and entered into key R&D collaborations. In February 2023, the company secured a £500,000 funding facility from AB Group.

· Glycotest, Inc. - 62 per cent. direct stake - the company closed a $1.46 million convertible loan facility with Fosun Pharma lending $500,000.

· PDS Biotech Inc. (NASDAQ:PDSB) - 4.4 per cent. direct holding - this immunotherapy for oncology company made substantial clinical progress across four Phase 2 clinical trials and secured a $35 million venture debt facility during the second half of the year. Since year end, the company has completed an in-licensing deal with Merck KGaA, and announced plans for a Phase 3 trial.

· Q-Bot Limited - 19.3 per cent. direct holding and a further 33.8 per cent. advised holding - EMV Capital syndicated a £2.8 million fundraising for working capital, scale-up production of robots, and engagement with growing UK and international demand.

· Sofant Technologies Ltd - 1.8 per cent. direct holding and a further 27.2 per cent. advised holding - EMV Capital syndicated and led a £4.2 million fundraising. The company has made significant progress towards commercial launch, including a further joint development agreement with a global player, and reaching technical milestones.

· DName-iT Holdings Limited - 46 per cent. direct holding (through Cetromed subsidiary). EMV Capital syndicated a first close of £147,000 as part of a £500,000 equity fundraising programme. This spin-out from Belgium's University of Leuven has developed a powerful proprietary technology that provides quality assurance throughout genetic testing processes for clinical laboratories.

Since the year end a number of other portfolio companies have announced further positive news including EpiBone's progress in clinical trials and FOx Biosystems raising €5.8 million.

New investments

During the period the Group introduced three new investments into the portfolio utilising its 'capital light' investment model:

· Vortex Biotech Holdings Limited - 30 per cent. direct holding - the company (one we previously advised but with no direct holding), continued its progress in creating Centres of Excellence for pharma services around Circulating Tumour Cells.

· Ventive Limited - 16 per cent. direct holding - EMV Capital led a £2.5 million financing package including equity and debt matched funding that unlocked a c.£1.5m BEIS grant, receiving its stake in partial settlement of fees. The company's business lines include a passive air ventilation system used by schools and a modular heat pump for newbuild residential applications.

· Deeptech Recycling Technologies Limited - 30 per cent. direct holding - the company acquired for an undisclosed amount from administration the majority of the assets of Recycling Technologies (a business that had targeted an AIM IPO in Q1 of 2022 at a pre-money valuation of c. £60 million). Our Value Creation team is working on relaunching this business in the rapidly growing plastics waste management space.

Dr Ilian Iliev, Chief Executive Officer of NetScientific commented:

"We have seen a 'heads down' dynamic and productive period for the Group, including high levels of growth activity within our portfolio, driven by positive operational and financial milestones achieved across a number of key companies. As we continue to scale our activities utilising our capital light investment model, we have also strengthened our Board and wider team, and improved our operating structures, corporate governance, and commercial reach. We are mindful of the transforming investment market environment, and are focused on real world, evidence-based delivery.

"2022 has been a solid year in a challenging environment and our key focus for 2023 is to progress our cohort of companies through our platform, creating value and fees, and progressing closer to exits and liquidity. With plans in place for further growth, the Board is optimistic about the potential for enhanced value creation and potential liquidity events."

-Ends-

The person responsible for arranging the release of this announcement on behalf of the Company is Ilian Iliev, Chief Executive Officer of the Company.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE UK VERSION OF REGULATION (EU) NO 596/2014 WHICH IS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED. UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

For more information, please contact:

NetScientific

Ilian Iliev, CEO Via Belvedere Communications

WH Ireland (NOMAD, Financial Adviser and Broker)

Chris Fielding / Darshan Patel / Enzo Aliaj +44 (0)20 7220 1666

Belvedere Communications

John West / Llew Angus +44 (0) 203 008 6867

Email: nsci@belvederepr.com

About NetScientific

NetScientific plc (AIM: NSCI) is an investment and commercialisation group with an international portfolio of innovative life science, sustainability and technology companies.

NetScientific identifies, invests in, and builds high growth companies in the UK and internationally. The company adds value through the proactive management of its portfolio, progressing to key value inflection points, and delivering investment returns through partial or full liquidity events.

NetScientific differentiates itself by employing a capital-light investment approach, making judicial use of its balance sheet and syndicating investments through its wholly owned VC subsidiary, EMV Capital. The group secures a mixture of direct equity stakes and carried interest stakes in its portfolio of companies, creating a lean structure that can support a large portfolio.

NetScientific is headquartered in London, United Kingdom, and is admitted to trading on AIM, a market operated by the London Stock Exchange.

www.netscientific.net