6th Mar 2020 18:19
(Alliance News) - Ilika PLC on Friday said its placing successfully raised its GBP15.0 million target, with 37.5 million shares placed at 40 pence each.
The 40p price represents a discount of around 10% to the closing price of 44.5p on Thursday. The stock closed down 8.8% at 40.60p in London on Friday.
Battery manufacturer Ilika intends to raise a further GBP2 million through an open offer which will give existing shareholders the opportunity to subscribe for five million shares at the same price of the placing.
This would give the placing and open offer a combined GBP17 million total, through the issue of up to 42.5 million new shares. A circular with details of the open offer will be sent out on or dear Monday next week.
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.
Chief Executive Graeme Purdy said: "We are delighted by the strong demand in the placing and an open offer will also be made available to all qualifying shareholders to participate in. This funding will give the company the exciting opportunity to realise the commercial potential of our solid-state battery technology."
Janus Henderson Ltd is subscribing for 2.3 million placing shares and GPIM Ltd 2.0 million shares. As they hold a more than 10% stake in the firm, these are considered related parties.
Chair Kieth Jackson is subscribing for 25,000 placing shares, giving him a total 95,000 share holding or 0.1% stake. Monika Biddulph, a non-executive director, is subscribing for 12,500 shares - her entire holding and a less than 0.1% stake.
Purdy, as well as Finance Director Stephen Boydell and Chief Scientific Officer Brian Hayden plan to exercise options entitle them to 20,000 new shares each under Ilika's bonus scheme, conditional upon the placing.
By Anna Farley; [email protected]
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