News blog

Frontier IP / Sigma Capital

• BY: Andrew Hore |
• POSTED: 14/08/2013 |

University intellectual property commercialisation services provider Frontier IP has raised £392,000 and former parent Sigma Capital has cut its stake.

Last December, Frontier IP raised £563,000 net at 10p a share and there was £368,000 of cash in the bank at the end of 2012. The latest fundraising and sale of existing shares was also at 10p a share.

Sigma raised £228,000 net and will make a profit of £70,000. Sigma still owns 5.9% of Frontier IP, which is no longer classed as an associate.

Frontier IP chief executive Neil Crabb and regional director Michael Brennard are swapping their stakes in Nandi Proteins for Frontier IP shares. This will increase Frontier IP’s stake in Nandi from 3.68% to 20.15%. Crabb will own 14.45% of Frontier IP and Brennard will hold 6.41%.

Nandi holds the patent to a process technology to improve functionality of common proteins, which help in cost reduction and fat replacement. Nandi is a spin out from Heriot Watt University in Edinburgh. Tate & Lyle secured an exclusive worldwide licence for aspects of Nandi’s protein technology for food and beverages and will commercialise the technology in the sector. Nandi retains the rights to the technology for the pharma sector. Frontier IP received advisory fees owed to it following the Tate & Lyle deal, which enabled the release of bad debt provisions of £119,000.

At 9.75p a share, up 0.88p, Frontier IP is valued at £1.78m. The NAV was 23p a share at the end of 2012 but this will be diluted by the latest placing.

Last month, Frontier IP signed a renewable energy-focused collaboration with Iberdrola and Narec Capital.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFAugust2013_47.pdf