(Alliance News) - EnSilica PLC, and Oxford based fabless chip-manufacturer, announced on Thursday the raising of of GBP1.56 million through conditional placement of 3.9 million new ordinary shares.

Having estimated its potential sales pipeline at USD360 million, EnSilica intends to use this new equity to "support the tender and execution of new and higher levels of activity". This includes seeking new design and supply contracts for integrated circuits, progressing two consultancy contracts worth up to USD7.1 million, and expansion work for existing contracts to include a "tape-out" and wafer supply.

The placing of the new shares, for which Allenby Capital Ltd acted as broker, has been priced at 40.0 pence per share, each entitling the subscriber a warrant for one new share at 55 pence within 18 months of the date of admission. It is expected that the shares will become effective on AIM around December 19.

This represents a significant discount from the company's floating price of 50.5 pence in May 2022 and its peak of 118.0 pence in January this year.

After the announcement, EnSilica shares were down 23% to their lowest ever valuation at 38.79 pence each in London on Thursday morning.

EnSilica's Chief Executive Officer Ian Lankshear said: "We are delighted that our shareholders have continued to support our growth ambitions as we seek to capitalise on a number of exciting opportunities. We are particularly pleased to be investing in expanding our operational footprint internationally and to further leverage our standing as a leading European mixed signal semiconductor manufacturer."

By Hugh Cameron, Alliance News reporter

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