Frontier IP sold $3.2m through a placement to new and existing backers as it announced its portfolio value had risen 34% year-on-year.
UK-based commercialisation firm Frontier IP has generated £2.5m ($3.2m) through an oversubscribed private placement of public equity (Pipe) with unspecified new and existing investors.
The placement consisted of just over 3.8 million ordinary shares sold at $0.83 per share, representing approximately 9% of Frontier IP’s enlarged share capital.
Founded in 2008, Frontier IP secures equity in spinouts through deals providing access to early-stage university intellectual properties with a total of eight institutions in the UK and Portugal.
The company’s portfolio companies include Dundee-founded pharmaceutical developer Exscientia and electronic printing technology developer NTPE, a spinout from Universidade Nova de Lisboa’s Faculty of Science and Technology.
Frontier IP will use the Pipe funding to buttress its working capital and add to its core management team, as the company pursues continued growth by expanding its portfolio and relationships.
The firm announced the fair value of its portfolio had risen by 34% year-on-year to $11.5m by the end of June 2018, helping its overall turnover up by an annual 2% to $3m. Its pre-tax profit for the financial year was lower, however, falling by 27% on 2016-2017 to $1.2m.
Neil Crabb, chief executive of Frontier IP, said: “There is strong evidence that our distinctive approach to intellectual property commercialisation, designed to address the needs of both universities and industry, is gaining traction.
“This fundraising will ensure we can take advantage of future opportunities as they arise. We are confident we are set to make significant progress as the Group and its portfolio companies develop.”
