Frontier IP Group announces new loan facility for portfolio company CamGraPhIC Limited

RNS

AIM: FIPP

24 July 2023

Frontier IP Group Plc

("Frontier IP" or the "Group")

Portfolio news - CamGraPhIC loan facility of up to £1.5 million

Frontier IP, a specialist in commercialising intellectual property, announces that its portfolio company, CamGraPhIC Limited ("CamGraphIC" or the "Company") has put in place a new loan facility which will provide funding of up to £1.5 million (the "Loan Notes") to enable CamGraphIC to accelerate the development of its growth.

A total of £1.043 million Loan Notes have been subscribed for under this the new loan note instrument. Frontier IP has subscribed for £1.0 million of Loan Notes pursuant to the loan facility comprising amounts that have been advanced by Frontier IP to CamGraphIC between 24 February 2023 and 21 July 2023.

The key terms of the Loan Notes are:

-      up to £1,500,000 fixed rate 8% unsecured loan notes can be issued in the Company;

-      the Loan Notes will bear interest at a rate of 8% per annum from the date of issue;

-      the Loan Notes are redeemable by the Company (so far as not converted) on the date which is 12 months after completion of a fundraising in which the Company raises new equity of £1 million or more;

-      the Loan Notes may be converted on a fundraising of any amount at the option of the noteholder and with the agreement of the Company; and

-      if the Loan Notes are converted, the Company will be required to issue each noteholder with warrants to subscribe for new shares in the Company equivalent to 20% of the Loan Notes at the price at which the loan notes converted.

CamGraphIC is the Group's second graphene spin out from the University of Cambridge. The Company was formed to develop graphene-based photonics for high-speed data and telecommunications. Graphene photonics is seen by the Company's industrial partners as a key enabler for 5G technologies and has potential applications in a range of other sectors.

Separate to the loan facility detailed above, Frontier IP has also previously: (i) advanced amounts totalling £210,000 to CamGraphIC under previous loan agreements entered into in 2019 and 2020 to provide working capital for the Company; and (ii) subscribed for a total of £1.018 million loan notes under a loan instrument originally issued by CamGraphIC in June 2021, details of which were announced by Frontier IP on 8 July 2021.

As a consequence, as at the date of this announcement the total amount advanced by Frontier IP to CamGraphIC is £2.23 million. In addition, Frontier IP holds a 20.8 per cent. equity stake in CamGraphIC.

Proceeds from the funding will be used by CamGraphIC to continue development and scale up of its technology, as the Company works with a number of potential customers, including multinationals in the semiconductor and telecommunications sectors.  In addition, CamGraPhIC is already providing revenue generating services to several major government and commercial organisations both commercially and via grant funded programmes.

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ABOUT FRONTIER IP

Frontier IP unites science and commerce by identifying strong intellectual property and accelerating its development through a range of commercialisation services. A critical part of the Group's work is involving relevant industry partners at an early stage of development to ensure technology meets real world demands and needs.

The Group looks to build and grow a portfolio of equity stakes and licence income by taking an active involvement in spin-out companies, including support for fund raising and collaboration with relevant industry partners at an early stage of development.

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