REG - Vela Technologies - Update re. investment in EnSilica

Vela TechnologiesAnnouncement

06/12/2022 07:00

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RNS Number : 6777I  Vela Technologies PLC  06 December 2022

6 December 2022

Vela Technologies plc

("Vela" or "the Company")

Update re. investment in EnSilica

The Board of Vela (AIM: VELA), an AIM-quoted investing company focused on
early stage and pre-IPO disruptive technology investments, today provides an
update on its investment in EnSilica plc ("EnSilica").

Between 24 May 2022 and 2 December 2022 the Company sold a total of 568,653
shares in EnSilica at an average price of 61p per share generating aggregate
net proceeds of £349,469 for the Company ("the Disposal"). The Disposal is
expected to generate a realised gain of £90,984 for Vela in the financial
year to 31 March 2023.

Following the Disposal, Vela retains 1,196,135 shares in EnSilica,
representing 1.6 per cent. of EnSilica share capital. The proceeds of the
Disposal will be used by the Company to make further investments in line with
the Company's investing policy and for general working capital purposes.

The Company originally invested £750,000 in EnSilica in the form of
convertible loan notes ("the Loan Notes") as part of a pre-IPO funding round
in January 2022. The Loan Notes and interest accrued since the investment
converted on the IPO of EnSilica in May 2022 into new ordinary shares in
EnSilica and on admission of EnSilica's shares to trading on AIM, Vela was
interested in 1,764,788 ordinary shares in EnSilica representing 2.3 per cent.
of the issued share capital.

EnSilica focuses on the design and supply of custom mixed signal Application
Specific Integrated Circuits ("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.

For the year ended 31 May 2022 EnSilica generated revenue of £15.3 million
and a profit for the year of £0.1 million (year ended 31 May 2021: revenue of
£8.6 million and a loss for the year of £2.1 million). As at 31 May 2022
EnSilica's net assets were £12.2 million.

James Normand, Executive Director of Vela, commented:

"In accordance with Vela's investing policy, we have realised part of our
investment in EnSilica in order to crystallise a proportion of the very
healthy gain that Vela's investment in Ensilica, made at the beginning of this
year, has shown.  This will replenish Vela's cash resources and thus enable
Vela to reinvest its funds in similar opportunities.  We retain over two
thirds of our original shareholding in EnSilica in the expectation of
continued growth given the Group's sizeable order book and prospects
pipeline."

 

For further information, please contact:

 

 Vela Technologies plc                        Tel: +44 (0) 7410 886830

 Brent Fitzpatrick, Non-Executive Chairman

 James Normand, Executive Director

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

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

 Novus Communications (PR and IR Adviser)     Tel: +44 (0) 20 7448 9839
 Alan Green / Jacqueline Briscoe

 

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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