Biofusion plc (AIM: BFN), the university IP commercialisation company that turns world class research into business, today announces that it has signed a Memorandum of Understanding (“MoU”) with Finance Wales, the provider of commercial funding to Wales-based SMEs, detailing a co-investment strategy for investing in opportunities arising from Biofusion’s exclusive IP pipeline agreement with Cardiff University.
In addition, Biofusion announces today that it has invested an additional £200,000 into Abcellute Ltd (“Abcellute”), its cell preservation technology spin-out company, thereby increasing its holding in Abcellute to 34%. The investment is the second such venture with Finance Wales, which is co-investing £200,000.
Finance Wales and Biofusion will work closely together with a view to co-investing in suitable Cardiff University spin-out companies within the Biofusion portfolio. Finance Wales already manages funds of more than £100 million and has invested £75 million into SMEs in Wales.
Within the second investment made under the new MoU, Biofusion and Finance Wales have provided £200,000 each to Abcellute which has developed an advanced cell preservation matrix that enables cells to stay fresh for up to seven days when they are transported to pharmaceutical companies for testing. The finance will provide development capital for new and existing contract work for the pharmaceutical and contract research industry and to fund new research and development into therapeutic applications, using their unique cell preservation technology.
Commenting on the MOU and investment, David Baynes, Chief Executive Officer of Biofusion, said:
“We are delighted to have signed this MOU with Finance Wales, which provides access to substantial additional funding for our portfolio of existing and future Cardiff University companies.
The investment into Abcellute is our second co-investment deal with Finance Wales and will allow Abcellute to progress its business strategy in the exciting area of cell preservation technology. We have found Finance Wales excellent partners to work with and we look forward to working with them into the future."
Also commenting on the MOU and investment, Steve Smith, Director of Development Funding at Finance Wales, said:
“Our MoU with Biofusion will open up new and exciting opportunities for both companies to develop and strengthen their expertise in early stage funding while providing new co-investment opportunities that will benefit spinout companies with high growth potential within the Biofusion portfolio.
Our co-investment in Abcellute Ltd is the second such investment made under the MoU and demonstrates Finance Wales’ commitment to supporting the growth of Wales-based early stage and spinout companies. Abcellute Ltd demonstrates all the hallmarks of a successful spinout company with global potential through continued research and development and commercialisation of its products.”