Fusion IP owns the rights to 100% of university-owned research generated at two of the UK's leading universities – The University of Sheffield and Cardiff University. These exclusive partnerships enable us to develop some of the world's most advanced and exciting science, in fields as varied as clean energy, electronics, engineering and medicine; turning world class research into valuable businesses through the creation of portfolio of companies.
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Fusion IP’s (LON:FIP) associate Seren Photonics today raised £1.8 million to help it push its new LED manufacturing technology into the manufacturing stage.
Seren’s revolutionary technology was developed by Professor Tao Wang from the University of Sheffield.
The technology greatly increases the efficiency of high brightness LED’s, as it significantly reduces heat generation under normal running conditions. It means that either much brighter LED lamps can be manufactured or that the power consumption of LED lamps can be reduced, Fusion says.
"We are delighted to have secured this significant investment,” said chief executive Carl Griffiths.
“The funds will enable us to accelerate the transfer of Seren's technology to manufacturing partners.
“This will start with our existing collaboration partner in India and we are already in discussion with HB LED manufacturers in China about the possibility of licensing or creating a joint venture manufacturing facility. We will continue to look for other potential partners outside of these territories."
The company raised the money from a number of investors. I2BF Global Ventures invested £1.1 million, Fusion invested £300,000 and fellow AIM investment firm IP Group contributed £400,000.
Following the investment round Fusion will own a 40.2 per cent stake in Seren.
"We are very pleased to join I2BF Global Ventures and IP Group in this funding round, which will enable Seren to continue its impressive development of its LED technology,” director Peter Grant said.
“We remain confident that Seren can make a significant contribution to enabling the use of LEDs in a variety of different energy efficient applications where there is a continuous need to reduce power consumption and improve product performance.
“With this funding in place we look forward to the company securing further deals for the use of its technology internationally."
Analyst Dr Mike Mitchell, at broker Seymour Pierce, which maintains its 'buy' rating, said that as the commerical traction across Fusion's portfolio builds, the broker remained of the opinion that the stock deserved to trade at a premium to its NAV (net asset value).
The current share price places the stock on a prospective 14.3 times earnings multiple, falling to 12.3 times in full year 2013 estimates, it said.
As at 2.25pm, Fusion shares stood up 2.92 per cent, at 70.50 pence.