REG - Vela Technologies - £750,000 investment in EnSilica

Vela TechnologiesAnnouncement

17/01/2022 07:05

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RNS Number : 5458Y  Vela Technologies PLC  17 January 2022

Prior to publication, the information contained within this announcement was
deemed by the Company to constitute inside information as stipulated under the
Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of
this announcement, this information is now considered to be in the public
domain.

17 January 2022

Vela Technologies plc

("Vela" or "the Company")

£750,000 convertible loan note investment in EnSilica

New investment provides Vela's portfolio with exposure to the high growth
semiconductor market

The Board of Vela (AIM: VELA), an AIM-quoted investing company focused on
early stage and pre-IPO disruptive technology investments, announces that it
has invested £750,000 in EnSilica Limited ("EnSilica"), a leading fabless
semiconductor design business focused on custom mixed signal Application
Specific Integrated Circuits ("ASICs"), in the form of convertible loan notes
("the Loan Notes"), as part of a pre-IPO funding round being undertaken by
EnSilica to raise up to £1.5 million.

Further information on EnSilica

EnSilica focuses on the design and supply of custom mixed signal ASICs to
system companies and original equipment manufacturers, managing the
manufacturing process end-to-end. The fabless mixed signal ASIC supply model
is a proven scalable platform to deliver both growth and profitability.

 

EnSilica has ASICs developed or under development across the satellite
communication, automotive, industrial and healthcare markets. Mixed signal and
radio frequency ASICs play a key role in differentiating EnSilica's customers'
products in these markets.

The funds raised will enable EnSilica to continue to support its existing
client base alongside additional investment in new customer ASICs, the supply
of which will support future revenue growth and profitability. The proceeds
will also provide working capital to support EnSilica.

Unaudited accounts show that EnSilica generated revenue of £8.4 million and
an adjusted EBITDA of £0.8 million in the year ended 31 May 2021; and that at
31 May 2021 EnSilica's net assets were £3.9 million. According to unaudited
management accounts, in the six months to 30 November 2021, EnSilica generated
revenues of £7.3 million.

Details of the Loan Notes

Vela has entered into an agreement with EnSilica, by which it has subscribed
for £750,000 of unsecured interest-bearing convertible loan notes in
EnSilica. Vela's investment has been satisfied from the Company's existing
cash resources. The key terms of the Loan Notes are as follows:

·      interest accrues on the Loan Notes at a rate of 10 per cent. per
annum;

·      the Loan Notes will be repayable on 9 January 2023 ("the
Repayment Date") to the extent not previously repaid or converted;

·      interest will accrue and be paid on the Repayment Date;

·      the Loan Notes will automatically convert on an IPO of EnSilica
into new ordinary shares in EnSilica at a 12% discount to the price at which
such shares are subscribed in the IPO; and

·      the Loan Notes are transferable only with the prior consent of
EnSilica.

 

James Normand, Executive Director of Vela, commented:

"EnSilica perfectly fits Vela's criteria for investment.  Its specialist
expertise in the semiconductor field and in particular in Application Specific
Integrated Circuits puts EnSilica firmly in the 'disruptive technology'
space.  Moreover, a public listing for its shares, which EnSilica expects to
achieve in the first half of this year, and the terms attaching to Vela's
investment are attractive and provide the potential for meaningful gains for
Vela as EnSilica puts its expansion plans into effect."

 

For further information, please contact:

 

 Vela Technologies plc                                          Tel: +44 (0) 7421 728875

 Brent Fitzpatrick, Non-Executive Chairman

 James Normand, Executive Director

 Allenby Capital Limited (Nominated Adviser and Joint Broker)   Tel: +44 (0) 20 3328 5656
 Nick Athanas / Piers Shimwell

 Peterhouse Capital Limited (Joint Broker)                      Tel: +44 (0) 20 7469 0930
 Lucy Williams / Duncan Vasey / Eran Zucker

 

About Vela Technologies

 

Vela Technologies plc (AIM: VELA) is an investing company focused on early
stage and pre-IPO long term disruptive technology investments. Vela's
investee companies have either developed ways of utilising technology or are
developing technology with a view to disrupting the businesses or sector in
which they operate. Vela Technologies will also invest in already-listed
companies where valuations offer additional opportunities.

 

 

 

 

 

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