Ilika to raise £6.3m to help finance battery sales

Ilika, a developer of new materials for energy and electronic applications, placed shares on AIM to raise about £6.3m to bolster its funds as it commercialises its battery product.

The company placed 12.6m shares of 1p each to be sold at 50p per share, which will raise about £6.3m at a 5.21% discount.

Chief executive, Graeme Purdy, said the funds raised strengthen the company's balance sheet to provide additional working capital headroom as it commercialises Stereax M250, the company’s first solid state battery product which was launched in April.

He added the company remains “focused on making it a commercial success” and the funds “will help us continue to build momentum and support future growth”.

Application to trade the shares is expected to be on 18 October, subject to shareholder approval, which is supported by the board.

After admission the company’s total issued share capital will be about 78.4m, with no shares in treasury, and will represent 16.07% of its enlarged issued share capital.

The company entered into a placing agreement with broker Numis Securities to obtain subscribers for the placing.

Shares Ilika were down 3.08% to 51.12p at 1057 BST.