£3.1million syndicated investment

RNS Number : 2180R

Mercia Technologies PLC

20 September 2017

 

RNS	20 September 2017

Mercia Technologies PLC

("Mercia" or the "Group")

£3.1million syndicated investment into Warwick Audio Technologies

Mercia Technologies PLC (AIM: MERC), the national investment group focused on the funding and scaling of innovative technology businesses with high growth potential from the UK regions, is pleased to announce that it has invested £1.9million as part of a £3.1million syndicated round into University of Warwick spinout, Warwick Audio Technologies Limited ("Warwick Audio"), the specialist developer of a new generation of planar audio transducers. This investment is alongside GuoGuang Electric Co ("GGEC") and a number of sophisticated private investors.

Mercia originally supported Warwick Audio through its third party managed funds, before it became a direct investment 'Emerging Star' in December 2014. In total, Warwick Audio has received £4.3million of direct investment from Mercia and the Group now holds a 64.0% equity stake in the business.

The funds raised via this new investment round will be used to continue product development of its High-Precision Electrostatic Laminate ("HPEL") technology, a high-end headphone system called the Sonoma Model One (http://www.sonomaacoustics.com), and to expand sales of these electrostatic headphones. The funds will also be used to help the company take advantage of new commercial opportunities which have been identified in the automotive market.

Over the last 18 months the strong performance of the HPEL transducers has been evidenced through public reviews; the Sonoma Model One has received positive reviews from both audiophile reviewers and leading figures in the professional recording industry.    

Mike Grant, CEO of Warwick Audio said: "Warwick Audio has achieved a great deal in the last 18 months. We are delighted to have secured this new round of funding and in particular to have received investment from GGEC and several new investors. The amount raised exceeded our original funding target and represents a vote of confidence in both the team and the growth strategy we are pursuing, exploiting the new market opportunities we have identified, including in particular the automotive sector."

Mark Payton, CEO of Mercia Technologies PLC said: "Warwick Audio is making good progress in achieving commercial milestones. This latest round of investment coupled with the strengthening of the board last year through the appointment of Gary Waters, former Vice President and General Manager of BOSE^TM Corporation as a Non-executive Director, demonstrates the strong platform being built. The company has a robust pipeline of opportunities in a range of sectors and Mercia is confident that the Warwick Audio management team will deliver shareholder value over the medium term."

For further information, please contact:

Mercia Technologies PLC Mark Payton, Chief Executive Officer Martin Glanfield, Chief Financial Officer www.merciatech.co.uk	[phone]
Cenkos Securities plc Stephen Keys, Camilla Hume (NOMAD)	[phone]
Buchanan Bobby Morse, Victoria Hayns, Stephanie Watson www.buchanan.uk.com	[phone]

About Mercia Technologies PLC

Mercia is a national investment group focused on the funding and scaling of innovative technology businesses with high growth potential from the UK regions. Mercia benefits from 18 university partnerships and offices across the Midlands, the North of England and Scotland providing it with access to high quality, regional deal flow. Mercia Technologies PLC is quoted on AIM with the epic "MERC".

Mercia's 'Complete Capital Solution' initially nurtures businesses via its third party funds (now with circa £336.5million under management following recent mandate wins) and then over time Mercia can provide further funding to its Emerging Stars by deploying direct investment follow-on capital from its own balance sheet. Since its IPO in December 2014, Mercia has invested over £41.0million directly across its portfolio of Emerging Stars.

 

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