Mercia Asset Management invests further in three portfolio firms

14th Mar 2024 13:22

(Sharecast News) - Mercia Asset Management announced the completion of syndicated funding rounds into three existing direct investments on Thursday, totalling £5.7m.

The AIM-traded firm said it injected £1.2m into MIP Discovery as part of a larger £7.1m syndicated funding round.

It said MIP specialises in non-biological affinity reagents, a technology crucial for accelerating the development and production of cell and gene therapies.

The injection was intended to bolster the commercialisation efforts of MIP's solutions, and

following the round, Mercia's direct stake in MIP stood at 11.5%.

Secondly, £2.5m was allocated to Locate Bio, a prominent orthobiologics company, as part of an £8.4m syndicated funding round.

The oversubscribed funding would facilitate the advancement of Locate Bio's LDGraft, intended for patients requiring surgery for chronic lower back pain.

Mercia said its direct stake in Locate Bio now reached 20.1%.

Finally, Mercia invested £2m in Warwick Acoustics, within a £6.9m syndicated funding round.

Warwick Acoustics specialises in high-end audio systems, with a goal of scaling production capacity following the acquisition of its first OEM commercial contract.

The funding would also support ongoing research and development efforts to enhance its competitive edge.

Mercia said its direct stake in Warwick Acoustics stood at 36.5% post-funding.

"We continue to be encouraged by the overall development of our direct investment portfolio," said chief executive officer Dr Mark Payton.

"A number of the companies in our portfolio are maturing as they scale the commercial applications of their underlying IP."

Dr Payton said the syndicated nature of the funding rounds, where nearly 80% of the investment funding was coming from outside of Mercia's balance sheet, reflected the confidence of the wider venture community in the companies.

"Our significant liquidity means that we are able to continue selectively supporting the existing portfolio's growth ambitions, with or without additional syndicated co-investment."

At 1157 GMT, Mercia Asset Management shares were down 6.25% at 31.5p.

Reporting by Josh White for Sharecast.com.