LONDON: Mercia Asset Management PLC said Thursday it has participated in a £6.4 million equity funding round for Warwick Acoustics Ltd., with an additional £1.1 million expected, as the audio technology company ramps up production following its partnership with Jaguar Land Rover.
Mercia, which manages over £2 billion in assets, invested £700,000 from its own balance sheet in the round. The balance came from a Mercia-managed fund, the Northern VCTs and other existing co-investors. The additional anticipated funding is expected from both existing and new shareholders, a statement said.
Warwick Acoustics develops next-generation electrostatic audio systems for automotive and personal audio markets. Its patented technology, designed to deliver superior-quality in-car sound through ultra-lightweight, energy-efficient speaker systems, recently debuted in the new Range Rover SV Ultra — marking the company’s first commercial deployment in a luxury automotive production model.
The total anticipated £7.5 million funding round will underpin the next phase of the company’s commercial growth, enabling Warwick Acoustics to maximize its production partnership with JLR while completing the transition to new production facilities. The company also plans to separate scaled production from its research, development and engineering operations and support further recruitment.
Following the full completion of the round, Mercia will hold a fully diluted direct investment stake of 26.2% in Warwick Acoustics.
Mercia Asset Management PLC is listed on the AIM market of the London Stock Exchange under the ticker MERC.
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.”
