Investment in portfolio company

13 February 2012

Imperial Innovations Group plc

Funding round for Imperial portfolio company Econic

Imperial Innovations Group plc (AIM: IVO, 'Innovations'), a leading technology commercialisation and investment group, has led a £1.1m funding round in Imperial College portfolio company, Econic Technologies Ltd (Econic), alongside Norner Verdandi, part of Norner AS, a leading international technology consultancy and partner for polymers and materials industries.

Econic is developing catalysts that enable polycarbonate polyols and polymers, and subsequently polyurethanes and polycarbonates to be produced using CO2 as one of the feedstocks. As a result, the proportion of petrochemicals in these materials is reduced. Because raw materials costs can account for up to 80% of the sales price of the finished product, it is expected that the reduced petrochemical content will translate to cost competitive products.

The catalysts have significant potential across the global polyurethanes and polycarbonates markets, which are worth around $20 billion and $11 billion respectively. Polyurethanes are used for products ranging from car seats to insulation foam and polycarbonates are used for products ranging from drinking bottles to coatings.

Innovations and Norner Verdandi each invested £550k in this round. The new funds will be used for Research and Development purposes, as well as scaling up the production process.

David Morgan, former Executive Director at Johnson Matthey, has joined the company as Chairman. Dr Charlotte Williams, Reader in the Department of Chemistry at Imperial College London, on whose research the company is founded, is Chief Scientific Officer.

Following the investment, Innovations holds a 43.3% stake in the business. Jon Edington, Director Investments at Imperial Innovations, will take a place on the board of Econic.

Susan Searle, Chief Executive Officer, Imperial Innovations, said:

"Econic's technology has the potential to offer a significant reduction in the production costs of a range of polymer materials. We are pleased to be investing alongside Norner Verdandi, whose process technology expertise will be invaluable to the development of Econic's technology."

David Morgan, Chairman, Econic, said:

"This funding will allow us to achieve the scale up of production and the investment in research and development we need for the next phase of the business. Having key investors on board, with their knowledge and expertise, makes this an exciting time for the business."

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Notes to editors

Imperial Innovations - www.imperialinnovations.co.uk 

Innovations creates, builds and invests in pioneering university technologies addressing global problems in healthcare, energy, engineering and the environment. It combines deep understanding of science and technology with commercial acumen and strong investment expertise.

Innovations supports scientist-entrepreneurs in the commercialisation of their ideas by:

·; leading the formation of new companies and providing facilities in the early stages

·; providing significant investment and encouraging co-investment to accelerate the transition from R&D to products

·; providing operational expertise

·; helping to recruit high-calibre industry figures and experienced entrepreneurs as executive management and Board members

Innovations invests in companies based on technologies from or associated with four universities: Imperial College London; and Cambridge University, Oxford University, and UCL supported by its collaborations with Cambridge Enterprise, OSEM and UCL Business. These are the UK's leading research intensive universities, measured by research income.

By raising £140 million in January 2011, Innovations has been able to accelerate the making of, and increase the size of its investments. In the year to 31 July 2011, Innovations invested £35.1 million (2010: £14 million) in 23 ventures, and launched six new companies.

In its current portfolio of 78 companies, Innovations' most advanced assets include Circassia, which develops innovative vaccines for the treatment of a wide range of allergies; and Nexeon, a battery materials and licensing company which develops silicon anodes which extend the life and increase the capacity of lithium-ion batteries.