Braveheart shows faith in science just days after float

Published on Wednesday 4 April 2007 01:51

BRAVEHEART Investments, the Scottish venture capital group, has made a "substantial" six- figure investment in an Edinburgh-based life sciences firm just days after floating on the Alternative Investment Market.

The Perth-based investment house, whose shares only began trading on AIM last Friday, said the cash injection was part of a 2 million round of funding into EctoPharma , which is developing a non-toxic pesticide for the treatment of head lice.

The financing package is expected to be the final round of funding before a licensing deal is struck for EctoPharma's lead product, KindaPed.

Braveheart chief executive Geoffrey Thomson said he had been looking at the firm for a while and was waiting for "the right moment" to invest.

"We don't do a lot of life science investment," he added. "They can eat money and the risk can be very high, but this is one where we feel they are at the right stage.

"The company has made a lot of progress in terms of its clinical trials. We think it has got some distance."

As well as Braveheart and existing shareholders in EctoPharma, the funding involved TRI Capital and Lochside (International) Investments.

Thomson said he expected the life sciences group to announce a licensing agreement within the next couple of years.

EctoPharma said its proprietary technology had the potential to be the basis for a new generation of safer pesticides. Further studies will target potential animal applications.

Magnus Nicholson, chief executive of EctoPharma, said: "Our initial portfolio of products is very strong and this round of funding, led by Braveheart, will enable our company to progress these products more rapidly."