Quantica

Expected to close soon – limited capacity

Pioneering technology company that could help take 3D printing from prototyping to mass production, in discussion with the likes of LG, Ford and Samsung

DISCLAIMER – This deal has been arranged, reviewed and introduced by West Hill Capital. Investors are directed to the Important Notice at the front of the Private Placement Memorandum (PPM), which explains the respective responsibilities of the Company and its Directors, and West Hill, which approved the PPM.

What to expect post-investment: West Hill and the Company are responsible for shareholder updates and communications. The expectation is that shareholder updates will be provided once per year. Your investment will be held by Aldbridge Services London and they will be responsible for all corporate resolutions and communications relating to voting and pre-emption matters. 

Important: this is an investment into a German Company which has recently established a UK presence. The Company is yet to submit its EIS compliance statement and application to HMRC. Management expects the Company to be EIS-qualifying, but this is not guaranteed. Moreover, it is likely EIS certificates could take some time whilst HMRC reviews the Company's application. 

3D printing, or additive manufacturing, is reshaping industries across the globe. In simple terms, it allows for the creation of three-dimensional objects layer by layer, offering flexibility, efficiency, and unlimited design possibilities. 

However, current applications tend to be mainly limited to prototyping and niche, small-scale production. This is due to a major drawback: existing technology can usually only print one material at a time, whereas commercial products usually comprise multiple materials. Moreover, conventional inkjet printheads cannot handle the highly viscous fluids required to print high-performance materials, such as those needed for a wide range of commercial applications.

German additive manufacturing start-up Quantica GmbH (“Quantica” or the “Company”) has pioneered novel, patent-pending printhead technology to overcome these limitations. 

The Company believes its NovoJet inkjet printhead to be the only technology in the world that can print multiple ultra-high-viscosity fluids simultaneously, to facilitate production of complex products and electronic devices. The printhead technology could open up a novel application space, as it can be integrated into Quantica’s own and partners’ or customers’ industrial printing systems and deliver applications at scale.

After five years in development, Quantica’s proprietary technology is now being introduced to the market. 

Global manufacturer of dental care products Ivoclar Vivadent signed a cooperation agreement with Quantica in April 2021 to develop a denture printer, which could transform how dentures are produced. Discussions are underway for similar joint development partnerships for applications including new medical products such as hearing aid devices, printed circuit board manufacturing, display manufacturing, process steps in semiconductor and fuel cell manufacturing, coating of cars and silicone printing.

Initial sales are completed with the major German R&D institution Fraunhofer IPA, as well as leading electronic product manufacturer Suzhou Konig and others. Companies such as LG, Ford and Samsung are in discussions about manufacturing applications, that could scale the revenue of the company significantly in the coming years. 

The Company forecasts revenues of £4.5 million this year, rising to £19 million next year and £166 million in five years, with EBITDA of £43 million – high risk and not guaranteed. Recurring revenues are expected to be significant.

To support the scaling of its innovation, the Company has launched a £14.8 million equity raise, led by strategic investor Ivoclar Vivadent, which will be increasing its total investment to £10.5 million. Quantica's CEO, who has invested £1.3 million to date, will also be investing up to a further €500,000 in the offer. For a limited period, Wealth Club investors have an exclusive £500k allocation, co-investing alongside and on the same terms as lead investor Ivoclar. The minimum investment is £25,000 (usually £50,000) and you can apply online.

Based on the Company’s forecasts, target returns could be in the region of 12x, not guaranteed, with Quantica potentially able to attract interest from large industrial corporates or private equity – you should form your own view. 

This is currently an early-stage, loss-making company, hence high risk. Before investing, please read the PPM carefully to form your own view and ensure you are comfortable with the considerable risks. 

Important: The information on this website is for experienced investors. It is not advice nor a research or personal recommendation to invest. If you’re unsure, please seek advice. Investments are for the long term. They are high risk and illiquid and can fall as well as rise in value, so you could get back less than you invest.

Quantica-EIS-Single-Company-2.jpgHighlights

The Company reports the following highlights: 

  • £10.5 million of the round taken by strategic investor Ivoclar Vivadent AG
  • Initial commercial traction within many of the world’s largest industries, including signed agreements with Fraunhofer IPA and Suzhou KONIG Electronic Technology and discussions with the likes of LG, Ford and Samsung
  • Potential use cases in several industries, including PCB, semiconductor manufacturing, fuel cell manufacturing, automotive, silicone parts, medical devices (e.g. dentures and hearing aid devices), apparel and consumer goods, optical devices 
  • The Company forecasts revenues of £4.5 million this year, rising to £19 million next year and £166 million in five years, with EBITDA of £43 million – high risk and not guaranteed. Recurring revenues are expected to be significant. 

Watch video: Introducing Quantica’s open 3D printer (released by Quantica in November 2023)

 

Private offer

The Company is seeking to raise £14.8 million – of which £4.35 million through West Hill Capital – at £433.21 per Common Share. This is equivalent to a fully diluted pre-money valuation of £46,210,944.

New and existing investors have committed £3.65 million in the round. The Company is now looking to fill the round on a first-come, first-served basis.

Investors in this round are investing in Common Shares. Please read the PPM carefully for more details. Investors have the option of having the investment in this tax year, next tax year or split across both.

This private offer is being arranged by West Hill Capital, which will also be responsible for shareholder updates post-investment, expected once every financial year. Wealth Club will endeavour to ensure all investor queries are dealt with promptly.

Risks – important

This, like all investments available through Wealth Club, is only for experienced investors happy to make their own investment decisions without advice.

This investment is high risk, so should only form part of a balanced portfolio and you should not invest money you cannot afford to lose. Many unlisted shares are illiquid and hard to sell and value.

Important: you are investing in a German Company which has recently established a UK presence. The Company is yet to submit its EIS compliance statement and application to HMRC. Management expects the Company to be EIS-qualifying, but this is not guaranteed. Moreover, it is likely EIS certificates will be delayed whilst HMRC reviews the Company's application. 

Before you invest, please carefully read the PPM which contains further details on the considerable risks – including, but not limited to, operating, technology, competition, market acceptance, product, employee, IP and financial – alongside the Wealth Club Risks and Commitments.

This is a single company offer with no diversification. It involves investing in an early-stage, loss-making business, which is by nature high risk and prone to failure. There is a risk that the capital raised may not be sufficient to achieve the Company’s objectives. You could lose the amount you invest.

The value of tax benefits depends on circumstances and tax rules can change. 

An exit could take longer than the three-year minimum EIS holding period. Equally, an early exit could affect tax relief.

Structure and fees

Investors will pay no direct initial or ongoing charges to invest. Fundraising costs are being met by the Company. Please refer to the Schedule of Charges for more details. 

To invest, you will have to qualify as an Elective Professional Client of West Hill. The investment will be held via a nominee structure through Aldbridge Nominees (Woodside).

Register your interest – No obligation

Wealth Club aims to make it easier for experienced investors to find information on – and apply for – investments. You should base your investment decision on the offer documents and ensure you have read and fully understand them before investing. The information on this webpage is a marketing communication. It is not advice or a personal or research recommendation to buy any of the investments mentioned, nor does it include any opinion as to the present or future value or price of these investments. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination. 

The details

Type
Single company
Sector
Technology
Target return
12x
Funds raised / sought
£3.7 million / £4.4 million
Minimum investment
£25,000
Deadline
19 Apr 2024 (9am) for final close
Last updated: 1 March 2024

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