News blog

Pure Wafer

• BY: Andrew Hore |
• POSTED: 22/10/2012 |

Silicon wafer reclaim services provider Pure Wafer is raising £4.49m ($7.19m) via a placing and one-for-nine open offer at 3.5p a share.

The share price fell 1.12p to 3.88p a share, which values the existing share capital at £4.92m.

Pure Wafer has borrowings of $11.9m and most of the cash raised will be used to pay off some of these borrowings. Some of the lenders are waiving final redemption fees and some other sums of money. The remaining borrowings will be $6.48m and the plan is to refinance these borrowings by January.

In the year to June 2012, revenues increased from $29.7m to $35.8m and the loss fell from $5.1m to $700,000. There was a $5.7m cash inflow from operating activities. The company’s manufacturing sites have been running at record levels and cost per wafer are at their lowest ever levels. The new solar business made an initial contribution.

The outlook appears positive because 300mm of silicon chip manufacturing capacity is being installed and the industry is expected to grow up to 2015.

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