6th Mar 2020 14:12
(Alliance News) - Battery manufacturer Ilika PLC on Friday said it intends to raise GBP17 million in total through the issue of up to 42.5 million new shares.
The company said it plans to raise GBP15 million through a share placing at an issue price of 40 pence, which represents a discount of around 10% to the closing price of 44.5p on Thursday.
The stock was trading 9.4% lower at 40.30 pence each on Friday afternoon in London.
The placing shares will be offered by way of an accelerated bookbuild process of which Liberum Capital Ltd is the sole bookrunner.
Additionally, Ilika intends to raise a further GBP2 million through an open offer which will give existing shareholders the opportunity to subscribe for 5 million shares at the same price of the placing.
Proceeds realised from the equity raise will be used to support the transfer of its Stereax battery cells into a third party fabrication facility, invest in further growth in Stereax production capability and for general working capital.
Funds raised will provide sufficient working capital to support Ilika's planned operations until it reaches cash flow break even, the company said.
By Ife Taiwo; [email protected]
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