Mercia announces £10.1m of new investments
Mercia Asset Management has revealed two new direct investments into a med tech business and a clean tech business.
The Henley-in-Arden firm has invested in Axis Spine as part of a £10.8m funding round. It has directly invested £3m alongside £3.8m from Mercia’s managed funds into the spinal implant provider.
MedTex Ventures, a US-based venture capital firm focused on the medical device industry, has invested £3.0m with the remaining £1.0m coming from other external investors. Mercia’s managed funds first invested in Axis Spine in 2017.
Following this investment, Mercia holds an 11.7% fully diluted direct equity stake in Axis Spine, with funds managed by Mercia holding a further 33.6% fully diluted equity stake.
Axis Spine says it delivers a highly differentiated platform of modular implants, designed to address the unmet clinical need for cage subsidence. This technology promises to reduce post-operative spinal segment collapse and improve spinal alignment in patients suffering chronic back pain and spinal deformity.
Mercia has also made a £2.3m investment through a convertible loan into Nova Pangaea as part of a £5.3m funding round. It has also invested £1m through its Northern Powerhouse Investment Fund and a further £2m has been received from co-investors.
Nova Pangaea is focused on creating biofuels and biochar to address pressing climate concerns of today. Led by CEO Sarah Ellerby, Nova Pangaea provides a patented process called REFNOVA® that converts woody and agricultural residues into high-value sustainable products that are used to manufacture Sustainable Aviation Fuel and a range of biochemicals. The process also produces Biochar, which is crucial for carbon dioxide removal and soil enhancement.
Mark Payton, Chief Executive Officer of Mercia said: “These are two businesses we have been excited about for some time, actively supporting them within our managed funds. We are pleased to welcome them onto our balance sheet, where we have significant liquidity to support both in reaching their next stage of maturity.
“Both embody what we look for in UK regional businesses, combining innovative technology with deep sector specialism to create real-world solutions
“Axis Spine’s patented technology has significant benefits over incumbents and, with FDA clearance now received, the team is well placed to move towards commercialisation in the US. We look forward to supporting the team as they scale a unique product.
“Nova Pangaea is part of the solution within multibillion-dollar markets as industries and governments alike look to transition to cleaner energy. This funding round will enable the business to invest in its growth, including the delivery of its first commercial production facility in 2023. We are excited to be supporting the scaling of Nova Pangaea as it accelerates its commercialisation, signs new partnerships and ramps up its production capabilities.”
