£11.2m Raised to Accelerate Connectivity Chip Development and Exploit New Industry Standard
The proceeds will mainly be used to invest further in Toumaz Microsystems. Toumaz Microsystems was recently established as a new fabless subsidiary by Toumaz with investment and support from Imagination Technologies Group plc (LSE:IMG, 'Imagination') to design, develop and sell wireless semiconductor chips and embedded solutions for the growing area of internet and cloud-connected applications.
The potential uses for this technology span across many markets from healthcare, home automation and wireless multimedia to enterprise solutions, monitoring devices and toys. Geographically, Toumaz is seeing growing opportunities across the world with particularly large market potential in the Far East.
Toumaz Microsystems' strategy is to deliver both low-power and high-performance connectivity solutions addressing both ultra low-power, battery-operated connected devices and also high data-rate devices needed for wireless audio and video delivery. A key focus is developing a new multi-standard connectivity chip. This ultra-low power radio receiver and transmitter chip will incorporate the new IEEE standard 802.15.6, for Body Area Networks ('BAN', see notes to editors).
Toumaz has been a very active participant and driver of the IEEE committee specifying and developing this important standard. This new standard has very recently been approved ahead of plan and part of the additional funds will enable Toumaz to develop the first chip incorporating the new standard alongside other key low power radio standards, such as Bluetooth LE and Zigbee, as quickly as possible. Toumaz has a strong next generation connectivity roadmap and on-going developments in both low-power and performance areas which can be executed and exploited with this additional funding and the recent investment and support from Imagination Technologies.
The new chips will also be incorporated in the next generation Sensium solution for wireless healthcare monitoring of vital signs, both in and out of the hospital making it compatible with the new IEEE standard.
Following this rapid approval of the new standard and establishment of our forward-looking roadmap Toumaz and Imagination have simplified the ownership structure of Toumaz Microsystems through exchanging Imagination's 25% holding in Toumaz Microsystems for 57,142,857 new Ordinary Shares of Toumaz at the Placing Price ('Exchange').
Application has been made for a total of 185,142,858 new Ordinary Shares to be admitted to trading on AIM, which is expected to be effective from and dealings in the new Ordinary Shares to commence on 16 February 2012.