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A deep discount value play

An investment company in early-stage life sciences, healthcare and technology businesses is priced on half analysts' sum-of-the-parts valuations even though its investee companies continue to perform well
A deep discount value play
  • £1.3m investment in London-based robotics and AI company Q-Bot
  • $730,000 direct investment in regenerative medicine company EpiBone
  • Positive trading update from health and life sciences subsidiary ProAxsis
  • Priced on half analysts’ sum-of-the-parts valuations

NetScientific (NSCI:88p), an investment company that backs early-stage life sciences, healthcare and technology businesses, has released multiple positive announcements for its investee companies and further diversified its portfolio since my last update (‘Glaring valuation anomaly exposed’, 4 November 2021).

The group has used £1.3m of its cash pile to take an 18.7 per cent equity stake in Q-Bot, a London-based robotics and AI company that has developed technology and digital solutions for the inspection, maintenance, insulation and upgrade of buildings and homes. Its patented robotic system for applying insulation in tight spaces and suspended floors (to reduce heat loss and prevent draughts, damp and mould) won the Queen's Award for Enterprise in the Innovation category in 2020. With energy prices at record highs, and the UK moving to net-zero carbon emissions, demand for Q-Bot’s technology from the construction and engineering industry can only rise. The group will further benefit from third-party investment in Q-Bot through the carried interests held by its investment services firm, EMV Capital.

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