EnSilica raises £1.56m to support its sales pipeline

14th Dec 2023 13:16

(Sharecast News) - EnSilica, a manufacturer of mixed-signal application-specific integrated circuit (ASIC) chips, announced a fundraising of £1.56m on Thursday to support its growing sales pipeline.

The AIM-traded firm said the funding was secured by placing 3,892,500 new shares for 40p apiece.

Participating subscribers would also receive one warrant for each subscribed share, allowing holders to acquire additional ordinary shares for 55p each within 18 months after admission.

The board said the initiative leveraged its existing share authorities, approved during its annual general meeting on 28 November.

EnSilica said the primary objective of the equity raise was to support its burgeoning business prospects, given a projected sales pipeline totalling $360m.

The raised capital would facilitate several key endeavours, including the pursuit of significant ASIC design and supply contracts, the possibility of a substantial contract for 'tape-out' and high-volume ASIC supply, progress on important consultancy contracts potentially valued at up to $7.1m, and the expansion of services for existing contracts to encompass tape-out and wafer supply.

"We are delighted that our shareholders have continued to support our growth ambitions as we seek to capitalise on a number of exciting opportunities," said chief executive officer Ian Lankshear.

"We are particularly pleased to be investing in expanding our operational footprint internationally and to further leverage our standing as a leading European mixed signal semiconductor manufacturer."

At 1617 GMT, shares in EnSilica were down 16.17% at 38.98p.

Reporting by Josh White for Sharecast.com.