Zeus Capital Analyst Dr Tom McColm today commented on the announcement by Ilika Plc (LON:IKA) that the successful £6.3m (circa $8m) equity fundraise has been approved at EGM is excellent news for the company. The capital raise is the next key step in the commercialisation of its world-class, Stereax™ solid-state battery technology. It provides the necessary balance sheet strength to give management the chance to maximise value for the company and its shareholders ahead of key OEM partner engagement negotiations for the full commercialisation of its state-of-the-art platform. The very low leakage currents, high energy densities and extended life spans of Ilika’s solid-state platform, compared to incumbent lithium ion based technologies, make it an excellent fit for small scale (1mm2), elevated temperature and energy harvesting sensor technologies. Examples of such are internet of things (‘IoT’), bio-electronic and transport applications.
Successful execution of £6.3m equity fundraise. Yesterday’s announcement that shareholder approval was granted at EGM finalises a successful £6.3m equity fundraising process for the company with new and existing shareholders, which was first announced to the market on September 27th. The placing price is 50p, a 5.21% discount to the closing mid-market price on September 26th. It is an excellent result for the company and a key event at this important stage of Ilika’s commercialisation journey.
Fundraise provides balance sheet strength ahead of commercial negotiations with existing and potential OEM partners. The £6.3m equity fundraise completed yesterday by IKA was timed to provide the necessary balance sheet strength at a key stage of the company’s commercialisation journey. It allows management to optimise value for the company and its shareholders as it prepares to enter into important negotiations of full commercial terms with its OEM customers and partners.
Solid-state batteries offer a step change in the evolution of battery technology, and Ilika Plc is a world leader. This year at the consumer electronics show (‘CES’) in Las Vegas, senior executives from some of the largest companies involved including Bosch, IBM and ST Microelectronics emphasised the critical importance of battery technology in the commercialisation of wireless sensor technology and the IoT. This company is fast becoming recognised as a world leader in this space. IoT and wireless sensors are perfect first markets for Ilika’s state-of-the-art solid-state battery platform, from which the company can build into follow-on markets of automotive and consumer electronics, including hand held devices. This fundraise provides the capital that enables this exciting progression to continue moving forward.