Scope Fluidics, a Warsaw Stock Exchange-listed life science company, allows for the expansion of the financing model for the development of its projects, opening up the possibility of raising external funding at an earlier stage, at the level of subsidiaries originating from Scope Discovery. The new approach may accelerate project development, increase the scale of operations, and improve risk management.
The expanded financing model is intended to cover projects at an early stage of development, and therefore does not apply to the most advanced project – BACTEROMIC, which is already at the stage of pursuing a Strategic Transaction.
“Scope Discovery is a critically important element of Scope Fluidics’ business model, enabling the identification of new growth areas and the building of a project portfolio addressing global healthcare market needs in a structured and repeatable way. To accelerate the development of our innovations, we have decided to make our financing model more flexible and expand its scope. This opens up new opportunities for raising external capital at the level of special-purpose vehicles, from the earliest stages of their development. It allows us to increase the scale of operations and leverage the potential of the Scope Discovery process to generate high-quality projects. This approach also enables more effective risk management, which is an inherent part of research and development activity. We believe that greater diversification and flexibility in financing will translate into a higher probability of success for our projects. At the same time, it should be emphasized that allowing for the expanded financing model does not determine whether or when external funding at the level of special-purpose vehicles will actually be raised. Any decisions in this regard will be made on a project-by-project basis,” says Piotr Garstecki, CEO of Scope Fluidics.
Under the previous model, Scope Fluidics retained 100% of the shares in subsidiaries developing projects until a potential strategic transaction. With the expansion of the financing model now permitted, it will be possible to raise external funding at the level of companies originating from Scope Discovery from very early stages of their development – even at the time of their formation. The new approach also allows for equity participation by key individuals involved in project development.
The decision to permit the expanded model was approved by the Management Board and received a positive opinion from the Supervisory Board, and its scope covers, among others, the EDOCERA and HYBOLIC projects. In the Management Board’s assessment, expanding the financing model will create conditions for the parallel and repeatable development of a larger number of project companies, supporting the achievement of the Group’s strategic objectives. It should be noted, however, that each project will be assessed individually, and decisions regarding external financing will depend on factors including the stage of development, the interests of Scope Fluidics and its shareholders, and market conditions.
In accordance with the Scope Fluidics Development Strategy, Strategic Transactions are understood to include in particular both the sale of all shares in special-purpose vehicles to strategic industry investors and the sale of a portion of existing or newly created shares in special-purpose vehicles to industry or financial investors.
