Mercia makes direct investments in two portfolio companies

(Sharecast News) - Mercia Asset Management announced direct investments into two of its portfolio companies, Warwick Acoustics and Axis Spine Technologies, as part of wider funding rounds totalling £6.2m and £6.6m respectively on Tuesday.

The AIM-traded firm said the transactions reflected ongoing commercial momentum and the ability of both businesses to attract third-party co-investment.

Warwick Acoustics, which develops low-energy, high-performance audio systems for the automotive and personal audio sectors, secured £1m directly from Mercia as part of its latest round.

The funds would support the fit-out of a new research and development and assembly facility, and provide working capital for inventory build.

Mercia said it now holds a fully-diluted 31.7% stake in the company.

Axis Spine, which designs modular spinal implants, received £2m from Mercia as part of a £6.6m raise to support its sales growth.

The investment was made alongside capital from Mercia's Northern VCTs, EIS funds, and external investors.

Following the transaction, Mercia's fully-diluted stake in Axis Spine stood at 14.5%.

"These follow-on investments into Warwick Acoustics and Axis Spine highlight the continuing commercial progress and resilience of our direct investment portfolio, together with the continued appeal of these technology led companies for growth-focused co-investors," said chief executive officer Dr Mark Payton.

"In a challenging macroeconomic environment, the ongoing co-investor interest in Mercia's direct investment portfolio validates both their enterprise values and commercial relevance."

At 1401 BST, shares in Mercia Asset Management were up 2.44% at 29.4p.

Reporting by Josh White for Sharecast.com.

Mercia Asset