US$200,000 Convertible Loan Note with Tekcapital
GenIP secures US$200,000 convertible loan from Tekcapital, equivalent to 23% of market capitalisation.
- Convertible Loan Note US$200,000
- Tekcapital stake represented approximately 23 per cent of current market capitalisation
- Interest rate 10 per cent per annum
- Tekcapital concert party holding approximately 48.95 per cent of voting rights
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GenIP Plc (AIM: GNIP), a provider of AI-driven services to help research organisations and corporations commercialise their innovations, announces that it has entered into a US$200,000 Convertible Loan Note Instrument (the "Loan Notes") with Tekcapital Europe Ltd ("Tekcapital Europe"), a wholly owned subsidiary of Tekcapital plc.
The Board believes this investment, representing approximately 23 per cent of GenIP's current market capitalisation, reflects Tekcapital's continued confidence in the Company's strategy, technology and long-term growth prospects.
The proceeds of the Loan Notes will be used to support the commercial rollout of the Company's new subscription-based SaaS platform for technology transfer decision-making and to further advance the Company's growth strategy as it seeks to expand adoption of its technology and services across the innovation ecosystem.
The Loan Notes have a term of four years from the date of issue and carry interest at a rate of 10 per cent per annum, accruing and compounding over the life of the instrument. Both principal and accrued interest may be converted into new ordinary shares in the Company.
The conversion price shall be equal to the closing mid-market price of the Company's ordinary shares on the trading day immediately preceding the date of conversion.
As the conversion price will be determined by reference to the prevailing market price at the time of conversion, the number of ordinary shares which may ultimately be issued upon conversion cannot be determined at the date of this announcement. The Company will make further announcements as and when any conversion occurs.
The Company may redeem the Loan Notes, together with accrued interest, at any time prior to maturity without penalty. The Loan Notes are unsecured.
Rule 9 Considerations
The Tekcapital concert party currently holds approximately 48.95 per cent. of the Company's voting rights and any conversion of the Loan Notes is therefore subject to the restrictions contained in Rule 9 of the City Code on Takeovers and Mergers.
Accordingly, any conversion of the Loan Notes or accrued interest may only take place to the extent that such conversion would not cause Tekcapital to make a mandatory offer for the Company under Rule 9 of the Takeover Code.
The conversion rights attaching to the Loan Notes are therefore subject to compliance with the requirements of the Takeover Code.
Related Party Transaction
As Tekcapital Europe is a wholly owned subsidiary of Tekcapital plc, a substantial shareholder of the Company, the Loan Notes constitute a related party transaction pursuant to AIM Rule 13 of the AIM Rules for Companies.
Accordingly, the Directors of the Company, with the exception of Lord David Willetts who is involved in the transaction by reason of being a non-executive director of Tekcapital plc, having consulted with the Company's Nominated Adviser, consider the terms of the Loan Notes to be fair and reasonable insofar as the Company's shareholders are concerned.
Melissa Cruz, Chief Executive Officer of GenIP, commented: "This financing represents a significant commitment to GenIP and provides further validation of the strategy we are executing. As we enter the commercial rollout phase of our new subscription-based SaaS platform, the Facility provides additional flexibility to accelerate growth initiatives and expand our market presence.
“The support from Tekcapital is particularly meaningful given the scale of the investment relative to the Company's current valuation and demonstrates confidence in both the progress achieved to date and the opportunities ahead. We believe GenIP is entering an exciting phase of development, and this investment strengthens our position as we continue to execute our strategy and create long-term value for shareholders."
Service Offerings
GenIP operates through two synergistic service lines:
| Service | Description | Value Proposition |
| Invention Intelligence Product Suite | AI-powered market intelligence reports assessing the commercial potential of emerging technologies | Enables faster, evidence-based decisions on R&D prioritisation, investment, and IP strategy |
| IP Commercialisation Services | End-to-end engagement to help research organisations commercialise innovations | Provides cost-effective, broad support to achieve our clients' strategic objectives |
Together, these services form a unified GenAI-enabled platform for innovation triage and execution.
Vision & Strategy
Organic Expansion
Service Deepening
Strategic Acquisitions
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