NetScientific's DeepTech Recycling secures £1m investment for plastic recycling technology
() , a deep tech and life sciences venture capital investment group, announced that its portfolio company DeepTech Recycling has successfully raised £1m. The fundraise was carried out via an advance subscription agreement and constitutes the first closing of a target investment programme of c. £3m with further investment anticipated within the next 6 months.
DeepTech Recycling aims to make plastic sustainable and support the global drive towards a circular economy for plastics through chemical recycling of plastic waste. DeepTech's patented technology platform was developed over 10 years of R&D and and commercialisation. NetScientific holds a 30% interest in DeepTech Recycling with the remaining 70% held by AB Group.
The proceeds of the fundraising will support DeepTech Recycling in the completion of a development phase for its pilot plant, development and adaption of its targeted technology and licensing strategy, and the setup of its operating base and development of its core team.
The advance subscription funds will only be applied for shares in the capital of Deeptech Recycling upon its raising at least £1.5m within 6 months of the first closing of the fundraising. Such subscription shares are anticipated to be priced at a 20% discount to the issue price of such £1.5m fundraising, with an agreed valuation cap of £6m.
The fundraising was led by EMV Capital, NetScientific's wholly-owned venture capital and corporate finance firm.
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A successful first £1m closing of DeepTech Recycling's planned £3m investment programme, representing a vote of confidence for the company's mission to transform non-recyclable plastic waste into valuable oil products. DeepTech's chemical recycling technology promises a commercially viable way to achieve a substantial reduction in plastic waste disposal and greenhouse gas emissions. The technology can be integrated and scaled into existing waste management chains internationally. The oil products generated can then be used as feedstock for producing virgin-quality plastics in order to achieve a fully circular economy for plastics.
The new capital will be used to scale up operations and accelerate the company's pipeline of opportunties, while leveraging EMV Capital's value creation and fundraising expertise. Given the subscription price for the first closing is not yet known, and no new shares in DeepTech Recycling have yet been issued, the total equity holding of NetScientific in DeepTech Recycling remains at 30%.
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