Ilika PLC (AIM:IKA, OTCQX:ILIKF, FRA:I8A), the AIM-listed developer of solid-state battery technology, received a broker endorsement after raising £4.5 million through an accelerated bookbuild at 28p a share, alongside a retail offer of up to £500,000 at the same price.
Solid-state batteries replace the flammable liquid electrolyte in conventional lithium-ion cells with a solid material, promising faster charging, greater safety and longer life.
Cavendish analyst Ian McInally described the raise, which represents just under 10% of Ilika's market value, as broadly in line with the £5 million fundraising the broker had already assumed in its forecasts.
Up to £2 million of the proceeds will support Ilika's small-format Stereax battery, which is designed to power implantable medical devices.
That funding will back product optimisation with Cirtec Medical, the US manufacturer producing Stereax under a 10-year licence, and testing of the M300 battery to enable sales and trigger initial royalty payments.
Up to £3 million will advance the larger Goliath battery from final technical specification towards licensing, including the delivery of a 10 ampere-hour product aimed at non-automotive markets.
Ilika initially targeted Goliath at electric vehicles, but has shifted its near-term focus to defence and consumer applications, where commercialisation could come more quickly.
The company received encouraging feedback from a UK defence agency in March on safety tests of its 10 ampere-hour cells under battlefield conditions, and in April agreed a joint development programme with Brompton to incorporate the cells into the bicycle maker's e-bikes.
Cavendish said Goliath commercialisation was progressing with a pipeline of evaluation agreements across 27 companies.
Ilika keeps its 'buy' rating, but the broker has trimmed back its price target to 118p.
