Last checked at 1 Mar 2024 07:00
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK Market Abuse Regulation
1 March 2024
Sondrel (Holdings) plc
("Sondrel", the "Company" and together with its subsidiaries the "Group")
Further re Corporate Update
Further to the announcement on 27 February 2024, Sondrel confirms that discussions with a potential provider of capital to meet the Group's immediate working capital requirements are now at a very advanced stage in respect of a proposed £0.9 million secured 15% convertible loan note (the "CLN").
If agreed between the parties, the CLN would be mandatorily convertible into new ordinary shares in the Company at a price of 10 pence per new ordinary share on completion of a wider fundraise by the Company to raise net proceeds of not less than c.£6 million (the "Fundraise"). The provider of the CLN is expected to invest a further material equity amount in the Fundraise, which is intended to be completed prior to the end of March 2024.
The Fundraise is expected to provide the Company with the necessary working capital resources to support it through to a positive trading cash flow position in the year ending 31 December 2024 ("FY24").
Whilst the CLN is expected to be secured imminently, the Company cautions that the provision of the CLN remains subject to agreement between the parties. The Company will not be able to meet February 2024 payroll in full prior to receipt of CLN proceeds.
The Company thanks its employees and other stakeholders for their continued support and commitment to the Group and further announcements will be made, as appropriate, in due course.
For further information:
Sondrel (Holdings) plc | Via Buchanan |
Graham Curren, CEO | Tel: +44 (0) 20 7466 5000 |
Nick Stone, Interim CFO | |
Cavendish Capital Markets Limited | Tel: +44 (0) 20 7220 0500 |
Ben Jeynes / Katy Birkin / George Lawson - Corporate Finance | |
Michael Johnson - Sales | |
Buchanan Communications | Tel: +44 (0) 20 7466 5000 |
Chris Lane / Stephanie Whitmore / Abby Gilchrist | sondrel@buchanan.uk.com
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About Sondrel
Sondrel is a UK-based fabless semiconductor company specialising in high end, complex digital Application Specific Integrated Circuits (ASICs) and System on Chips (SOCs). It provides a full turnkey service in the design, prototyping, testing, packaging and production of ASICs and SoCs.
The Company is one of only a few companies capable of designing and supplying the higher-spec chips built on the most advanced semiconductor technologies, selling into a range of hyper growth end markets such as high-performance computing, automotive, artificial intelligence, VR/AR, video analytics, image processing, mobile networking and data centres. Sondrel designs have enabled products by leading technology brands including Apple (iPhone), Sony (PlayStation), Meta's (Oculus), Samsung, Google and Sony smartphones, JVC (prosumer camcorders), Tesla and Mercedes-Benz cars.
Sondrel is well-established, with a 20-year track record of successful delivery, supported by long standing ecosystem partnerships including Arm, TSMC and Samsung. Headquartered in the UK, Sondrel has a global presence with offices in UK, USA, China, India and Morocco.
For more information please visit: www.sondrel.com.