Versarien’s turnaround supported by sixth share placing

Versarien has raised £615,000 in a share placing to fund working capital in support of its turnaround plans.

The advanced materials engineering group has been struggling for more than a year and has now raised £2.94m in six separate fundraises.

It raised £400,000 in January, £455,000 in November, £650,000 in July, £513,000 in May, and £318,000 last March.

Earlier this month Versarien revealed it had sold plant and equipment in South Korea for £604,000. Versarien’s mature businesses, AAC Cyroma and Total Carbide, continue to be marketed for sale and discussions are ongoing.

The Forest of Dean company has been struggling since it revealed a £3.4m loss a year ago, which saw founder and chief executive Neill Ricketts depart.

Stephen Hodge, chief executive of Versarien, said: “We are very pleased to have raised these funds which will facilitate further progress following the positive developments regarding the sale of the South Korean assets and licencing deal with Montana, and will assist in laying the foundations for us to implement a longer-term strategy for the business.”