Placing?16 Mar 2023 09:01
In the last 6 months they consumed more than £1m a month and had just £8m left at the end of December. £4m is needed for the Johnson Matthey IP acquisition. I expect a cash rise soon; down 60% over the last 12 months does not help when you want to market shares to raise a significant amount... a years cash runway would want over £10m; the discount / dilution could be eye watering especially if the market begins to anticipate a discounted placing and hammers the share price.
From the RNS:
1. Johnson Matthey IP acquisition
On 9 March 2023, Gelion signed an agreement to acquire a world-leading IP portfolio in a range of next generation battery material technologies from Johnson Matthey, a British multinational chemicals and sustainable technologies company. The Company acquired the entire LiSiS patent portfolio for £4.25 million which includes over 450 patents across 82 patent families. This transaction will be funded from the cash resources of the Company.
With the Group's focus on sulfur cathodes, Gelion is in advanced discussions to sell a subset of patents (73 patents across 17 patent families) as well as applications relating to silicon anode to a third party for c.£1.25 million. Should the third-party sale being successful, the net cash impact will be c.£3 million.