Significant new investment into Warwick Acoustics
Mercia Asset Management PLC has announced a significant new investment round into its portfolio company, Warwick Acoustics, which has raised £6.4 million with an additional £1.1 million anticipated, bringing the total potential funding to £7.5 million. Mercia contributed £0.7 million from its balance sheet, with the remainder coming from a Mercia managed fund, Northern VCTs, and other co-investors. This funding will support Warwick Acoustics' commercial growth, particularly its partnership with Jaguar Land Rover, and facilitate a move to new production facilities. Following the full funding round, Mercia will hold a 26.2% stake in Warwick Acoustics.
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Mercia Asset Management PLC (AIM: MERC), the proactive, regionally focused private asset manager with over £2.0billion of assets under management, is pleased to announce a further significant investment round into Warwick Acoustics Ltd ("Warwick Acoustics"), a direct investment portfolio company developing next-generation electrostatic audio systems for the automotive and personal audio markets.
Warwick Acoustics has completed an equity funding round of £6.4million, with additional funding of up to £1.1million anticipated, that will underpin the next phase of its commercial growth following its recently announced partnership with Jaguar Land Rover ("JLR"). As part of the round Mercia has invested £0.7million from its balance sheet, with the balance coming from a Mercia managed fund, the Northern VCTs and other existing co-investors. The additional funding is expected to come from both existing and new shareholders.
Combined, this investment will enable Warwick Acoustics to maximise the potential of its first production partnership with JLR, while supporting the business to complete the transition to its new production facilities, separating scaled production from its dedicated research, development and engineering operations, as well as supporting further recruitment.
Warwick Acoustics' patented electrostatic audio technology is designed to deliver superior-quality in-car sound through ultra-lightweight, energy-efficient speaker systems. Its technology was recently launched in the new Range Rover SV Ultra, marking a significant commercial milestone for the business with the deployment of its technology into a luxury automotive production model.
Following completion of the total anticipated funding round of £7.5million, Mercia will hold a fully diluted direct investment stake of 26.2% in Warwick Acoustics.
Dr Mark Payton, Chief Executive Officer of Mercia Asset Management PLC, said:
"Warwick Acoustics has reached a significant commercial and investment inflection point. The successful delivery of its first OEM partnership with JLR demonstrates both the quality of its technology and the capability of the team to meet the exacting standards of the automotive sector. This funding round gives the business not only the financial resources needed to consolidate that success operationally, but also to pursue further growth opportunities."
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