Shares in chip-maker EnSilica PLC (AIM:ENSI) fell 13% to 40p after it announced a discounted £1.56 million fundraising to capitalise on a potential sales pipeline it estimates at around US$360 million.
The net proceeds of the conditional placing will be used to support the tender and execution of "new and higher levels of activity", it said, as it seeks to secure two "material" contracts for the design and supply of mixed-signal application specific integrated circuits (ASICs) and another potential "material" contract for a potentially high volume ASIC.
EnSilica also pointed to two "significant" consultancy contracts and said it was also looking to expand work for existing contracts to include "tape-out" and wafer supply.
The placing of almost four million new ordinary shares is being priced at 40p per share, with subscribers in the placing receiving one warrant for every new share, each of which entitles the purchase of a new ordinary share at a price of 55p at any time in the subsequent 18 months.
This discount sent the shares to a new low, having floated at 50p last year and risen to a peak of over 118p earlier this year.
Ian Lankshear, chief executive, 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."