Opportunitliony, Semtrillion dollar industry Semico conductor5 Feb 2024 09:52
Sondrel (Holdings) plc
("Sondrel", the "Company" and together with its subsidiaries the "Group")
Corporate Update
Sondrel (AIM: SND), a leading provider of ultra-complex chips for leading global technology brands, is pleased to confirm that it has received £1.5 million of payments in relation to the material turnkey ASIC engagement with its automotive Tier 1 supplier in January 2024, further to the announcement of 10 January 2024.
As a result, previously deferred December 2023 Group payroll has been met along with January 2024 Group payroll and certain creditor payments. Discussions with the customer over resolution of the funding for the project extension continue and additional payments are expected in the coming months, assuming completion of the 'tapeout' milestone and including the balance of £0.2 million.
Significant new ASIC business opportunities are in final negotiation for project start in early 2024 and indications remain encouraging that European and US market demand for Sondrel's turnkey ASIC services is strong.
Negotiations remain ongoing with suppliers to improve the terms of existing supply arrangements but the Group continues to need to secure additional capital prior to the end of March 2024 to provide a more permanent solution to meet the Company's short-term working capital requirements.
Graham Curren, Chief Executive Officer of Sondrel, commented:
"We have made good progress on the ASIC project with the automotive Tier 1 supplier. I would like to thank Sondrel's employees, suppliers and customers for their continued support over recent months.
"We remain encouraged by the positive development
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