Ilika plc (LON:IKA), an independent global expert in solid-state battery technology, has announced a proposed conditional placing of up to 6,071,428 new ordinary shares of one penny each in the capital of the Company at a price of 28 pence per Placing Share to raise gross proceeds of approximately £1.7 million.
The Placing Shares represent approximately 3.8 per cent. of the existing issued ordinary share capital of the Company (the “Existing Ordinary Shares”) and the Issue Price represents a discount of approximately 5.1 per cent. to the closing mid-market price of 29.5 pence per Existing Ordinary Share on 9 May 2024, being the latest practicable date prior to the publication of this Announcement.
The Company also intends to raise gross proceeds of up to approximately £1.7 million through the issue of up to 6,114,449 new Ordinary Shares (the “Open Offer Shares”) pursuant to an open offer (the “Open Offer”) to allow Ilika shareholders, including those who are not participating in the Placing, to subscribe for new Ordinary Shares at the Issue Price.
It is intended that the Placing, the Open Offer and the Director Subscriptions (together the “Capital Raising”) will result in the Company raising total gross proceeds of up to approximately £3.4 million.
Capitalised terms used in this announcement (including the appendices) (this “Announcement”) have the meanings given to them in Appendix 3 to this Announcement, unless the context provides otherwise.
Liberum Capital Limited (“Liberum”) and Joh. Berenberg, Gossler & Co. KG (“Berenberg”) are acting as joint bookrunners (together being the “Joint Bookrunners”) in connection with the Placing. The Placing Shares are being offered by way of an accelerated bookbuild (the “Bookbuild”), which will be launched immediately following this Announcement, in accordance with the terms and conditions set out in Appendix 4 to this Announcement.
The timing of the closing of the Bookbuild and the allocation of Placing Shares to be issued at the Issue Price are to be determined at the discretion of the Company and the Joint Bookrunners.
A further announcement will be made following the close of the Bookbuild, confirming final details of the Placing.
Capital Raising highlights
· Conditional Placing to raise gross proceeds of approximately £1.7 million and an associated Open Offer to raise gross proceeds of up to approximately £1.7 million through the issue of an aggregate of up to 12,185,877 new Ordinary Shares at the Issue Price.
· Intended Director Subscriptions to raise gross proceeds of approximately £22,000 through the issue of an aggregate of 78,570 new Ordinary Shares at the Issue Price.
· The net proceeds of the Capital Raising are expected to be utilised to drive Ilika’s roadmap for its Goliath solid-state battery projects.
· In particular, the net proceeds of the Placing (being approximately £1.5 million) are expected to be utilised as follows:
o £0.75 million to support the development of Goliath technology , with grant assistance, to support partner collaboration;
o £0.75 million to increase the battery testing capacity from 20 kWh/a to 0.75 MWh/a and to upgrade existing dry room facilities; and
o any Placing proceeds over £1.5 million to further support of Goliath working capital and capital expenditure for expansion of testing and dry room facilities and support of Stereax working capital.
The net proceeds of the Open Offer and the Director Subscriptions will be used to further support the Group’s working capital requirements.
The Directors are of the opinion, the net proceeds of the Capital Raising will further strengthen the balance sheet (cash and cash equivalents as at 30 April 2024 in excess of £11 million) and provide working capital beyond 12 months from the date of this announcement.
Posting of Circular
The Company intends to publish and send a circular to shareholders in connection with the Open Offer on or around 13 May 2024. The Circular will also be available on the Company’s website: www.Ilika.com.
General Meeting
The Capital Raising is conditional upon, inter alia, the passing of the Resolutions at the General Meeting. The Company will hold the General Meeting at the offices of Eversheds Sutherland (International) LLP, One Wood Street, London, EC2V 7WS at 11.00 a.m. on 29 May 2024.
The Expected Timetable of Principal Events is set out in Appendix 2 of this Announcement whilst the Placing and Open Offer Statistics as well as the Chairman’s Letter, as extracted from the Circular, are set out below.
