NetScientific Annual Loss Narrows, Seeks Funds To Operate Past June (ALLISS)

29th Mar 2018 13:01

LONDON (Alliance News) - NetScientific PLC said on Thursday its loss narrowed in 2017, and it announced plans to raise up to GBP6.0 million.

If the funds are not raised, the company said it will have sufficient finances to fund its business only until the end of June.

Revenue for 2017 came in at GBP386,000, down from GBP518,000 the year before, as its pretax loss narrowed to GBP9.6 million from GBP12.4 million year-on-year. The narrowed loss reflected the "progression of portfolio companies and additional reduction in group central costs".

Research & development costs fell to GBP5.2 million in the period from GBP7.4 million in 2016.

The focus of the group during 2018 will be to continue progress across its portfolio companies. ProAxsis expects to reach over GBP1.0 million in revenue during 2018, while Glycotest is continuing its series A discussions with a potential investor.

Additionally on Thursday, NetScientific said it intends to raise GBP5.0 million through a placing and subscription of 9.5 million shares at a price of 52.5 pence each, and an additional fundraising to raise up to GBP1.0 million through the issue of 1.9 million shares at that same price.

The funds will be used to continue the development of its actively managed portfolio companies to seek to meet the funding requirements needed to take the companies further towards commercialisation.

If the placing does not proceed and additional financing does not become available, the company said it will only have sufficient finances to fund its business until the end of this coming June.

Shares in the company were down 3.1% at 50.90 pence on Thursday.

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