Ilika joint venture

Advanced cleantech materials developer Ilika reports that a contract research relationship with a major vehicle manufacturer has been switched to a full blown joint development project.

Ilika will receive payments to fund the ongoing cost of research, which involves the reduction of platinum in catalysts for fuel cells. The company will also jointly own the technology it is developing and will be able to use it in other sectors.

On 14 May Ilika raised £5.2 million before expenses via a placing at 51p a share. After deducting the expenses of the quotation, the company was left with £4.4 million to finance the development of materials it has already identified as having a use in the energy, electronics and biomedical sectors. Projects include developing new materials for lithium-ion vehicle batteries for Toyota and hydrogen storage materials with Shell and Johnson Matthey.  

Revenues are generated from milestone payments and royalties paid by development partners and through sales of the company’s own biomedical products.

Ilika has been selling cryoskin and myskin woundcare products: the cash raised will also help the company to start clinical trials of a corneal bandage.

This part of Ilika’s business has also started a joint development project with the Industrial Technology Research Institute in Taiwan to develop bio-functional polymers for a tissue regeneration project. The company also has an agreement with ITRI for the joint development of fuel cell catalysts.

Ilika’s main subsidiary increased revenues from £916,000 to £1.06 million in the year to April 2010, with nearly all the revenues coming from three customers. The reported loss also increased from £2.09 million to £3.26 million. However, that figure includes a rise in share-based expenses from £86,000 to £816,000. This subsidiary has more than £6 million of tax losses.

 At 55.5p a share, Ilika is valued at £20.3 million.

 

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