REG - Vela Technologies - Update re. investment in EnSilica

Vela TechnologiesAnnouncement

13/05/2024 17:45

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RNS Number : 2430O  Vela Technologies PLC  13 May 2024

13 May 2024

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 4 July 2023 and 10 May 2024 the Company sold a total of 430,000 shares
in EnSilica at an average price of 62p per share generating aggregate net
proceeds of approximately £265,633 for the Company ("the Disposal"). The
Disposal is expected to generate a realised gain of £18,719 for Vela in the
financial year to 31 March 2024 and a realised gain of £4,800 for Vela in the
current financial year to 31 March 2025.

Following the Disposal, Vela retains 666,707 shares in EnSilica, representing
0.78 per cent. of EnSilica's current issued share capital. The proceeds of the
Disposal are being utilised by the Company 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. In March
2023, Vela invested a further £125,000 in EnSilica through the purchase of
178,572 ordinary shares. The investment was made as part of a £2.0 million
placing undertaken by EnSilica, details of which were announced by EnSilica on
9 March 2023.

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 2023 EnSilica generated revenue of £20.5 million
and an operating profit for the year of £0.8 million. As at 30 November 2023
EnSilica's unaudited net assets were £16.5 million.

James Normand, Executive Director of Vela, commented:

"EnSilica has been a successful investment for Vela, reflecting the excellent
trading and management performance that has been maintained and enhanced since
the company's listing in May 2022. Vela invested a total of £875,000 in 2022
and 2023 resulting in Vela acquiring a total of 1,943,360 EnSilica shares. It
has since sold approximately two thirds of these shares for an aggregate
£843,000 and retains 666,707 shares with a market value of approximately
£407,000 based on today's closing share price of 61p, thus showing an
approximate 43% return of investment as of today."

 

For further information, please contact:

 

 Vela Technologies plc                        Tel: +44 (0) 07950 389 469

 Brent Fitzpatrick, Non-Executive Chairman

 James Normand, Executive Director

 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.

 

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