Last checked at 6 Dec 2022 07:00
6 December 2022
Vela Technologies plc
("Vela" or "the Company")
Update re. investment in EnSilica
The Board of Vela (AIM: VELA), an AIM-quoted investing company focused on early stage and pre-IPO disruptive technology investments, today provides an update on its investment in EnSilica plc ("EnSilica").
Between 24 May 2022 and 2 December 2022 the Company sold a total of 568,653 shares in EnSilica at an average price of 61p per share generating aggregate net proceeds of £349,469 for the Company ("the Disposal"). The Disposal is expected to generate a realised gain of £90,984 for Vela in the financial year to 31 March 2023.
Following the Disposal, Vela retains 1,196,135 shares in EnSilica, representing 1.6 per cent. of EnSilica share capital. The proceeds of the Disposal will be used by the Company to make further investments in line with the Company's investing policy and for general working capital purposes.
The Company originally invested £750,000 in EnSilica in the form of convertible loan notes ("the Loan Notes") as part of a pre-IPO funding round in January 2022. The Loan Notes and interest accrued since the investment converted on the IPO of EnSilica in May 2022 into new ordinary shares in EnSilica and on admission of EnSilica's shares to trading on AIM, Vela was interested in 1,764,788 ordinary shares in EnSilica representing 2.3 per cent. of the issued share capital.
EnSilica focuses on the design and supply of custom mixed signal Application Specific Integrated Circuits ("ASICs") to system companies and original equipment manufacturers, managing the manufacturing process end-to-end. The fabless mixed signal ASIC supply model is a proven scalable platform to deliver both growth and profitability.
EnSilica has ASICs developed or under development across the satellite communication, automotive, industrial and healthcare markets. Mixed signal and radio frequency ASICs play a key role in differentiating EnSilica's customers' products in these markets.
For the year ended 31 May 2022 EnSilica generated revenue of £15.3 million and a profit for the year of £0.1 million (year ended 31 May 2021: revenue of £8.6 million and a loss for the year of £2.1 million). As at 31 May 2022 EnSilica's net assets were £12.2 million.
James Normand, Executive Director of Vela, commented:
"In accordance with Vela's investing policy, we have realised part of our investment in EnSilica in order to crystallise a proportion of the very healthy gain that Vela's investment in Ensilica, made at the beginning of this year, has shown. This will replenish Vela's cash resources and thus enable Vela to reinvest its funds in similar opportunities. We retain over two thirds of our original shareholding in EnSilica in the expectation of continued growth given the Group's sizeable order book and prospects pipeline."
For further information, please contact:
Vela Technologies plc Brent Fitzpatrick, Non-Executive Chairman James Normand, Executive Director
| Tel: +44 (0) 7410 886830 |
Allenby Capital Limited (Nominated Adviser) | Tel: +44 (0) 20 3328 5656 |
Nick Athanas / Piers Shimwell
| |
Peterhouse Capital Limited (Broker) |
Tel: +44 (0) 20 7469 0930 |
Lucy Williams / Duncan Vasey / Eran Zucker
| |
Novus Communications (PR and IR Adviser) |
Tel: +44 (0) 20 7448 9839 |
Alan Green / Jacqueline Briscoe |
About Vela Technologies
Vela Technologies plc (AIM: VELA) is an investing company focused on early stage and pre-IPO long term disruptive technology investments. Vela's investee companies have either developed ways of utilising technology or are developing technology with a view to disrupting the businesses or sector in which they operate. Vela Technologies will also invest in already-listed companies where valuations offer additional opportunities.