Investments into Warwick Acoustics and Axis Spine

In brief · summary, not quotable

Mercia invests £1.0m in Warwick Acoustics and £2.0m in Axis Spine alongside co-investors.

Warwick Acoustics total funding round £6.2m
Mercia direct investment in Warwick Acoustics £1.0m
Mercia stake in Warwick Acoustics post-investment 31.7% fully diluted
Axis Spine total funding round £6.6m
Mercia direct investment in Axis Spine £2.0m
Mercia stake in Axis Spine post-investment 14.5% fully diluted

Full announcement

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Mercia Asset Management PLC (AIM: MERC), the regionally focused, specialist alternative asset manager with over £1.8billion of assets under management, is pleased to announce its participation in significant funding rounds for two of its direct investment portfolio companies, Warwick Acoustics Limited ("Warwick Acoustics") and Axis Spine Technologies Limited ("Axis Spine").

These investments reflect the continued commercial progress of both companies and the potential for their respective technologies. The funding rounds also underscore their ability to attract third-party co-investors.

Warwick Acoustics, which creates audio systems for the automotive and personal audio markets based on its superior sound quality and low energy technology, has secured £6.2million in new investment. This includes a direct investment of £1.0million, with the additional funding coming from Mercia's Northern VCTs, third-party investors and other existing shareholders. This additional investment will be used to fit out their new R&D and assembly facility, together with funding working capital for automotive inventory build. Following this funding round, Mercia holds a fully diluted 31.7% direct investment in Warwick Acoustics.

Axis Spine, a medical device company specialising in modular spinal implant systems, has completed a £6.6million funding round. This includes a direct investment of £2.0million, with additional funding coming from Mercia's Northern VCTs and EIS managed funds, alongside other third-party investors. This additional investment will be used to support the company's sales growth. Following this funding round, Mercia holds a fully diluted 14.5% direct investment in Axis Spine.

Mark Payton, CEO of Mercia Asset Management PLC, commented: "These follow on investments into Warwick Acoustics and Axis Spine highlight the continuing commercial progress and resilience of our direct investment portfolio, together with the continued appeal of these technology led companies for growth-focused co-investors. In a challenging macroeconomic environment, the ongoing co-investor interest in Mercia's direct investment portfolio validates both their enterprise values and commercial relevance. "

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