Embattled business raises £318,000 through stock market placing

A firm which recently parted company with its chief executive and founder has raised £318,00 through a share placing on the stock market.

Gloucestershire firm Versarien recently announced that chief executive Neill Ricketts had resigned while it looks to secure funds to provide stability.

As a result of the announcement the share price of the AIM listed group fell by 50 per cent.

Versarien has struggled with successfully commercialising its innovations and last month reported a pre-tax loss of £8.4m for the 18 months to September 2022.

The company recently acknowledged a “material uncertainty” about its future existed because it had not confirmed the results of a number of significant grant applications which, if unsuccessful, would require the group to go to investors to plug the cash hole.

The net proceeds of the placing will be used to continue Versarien’s commercialisation work, primarily in the construction and leisure sectors and for general operational and working capital purposes.

Chris Leigh, chief financial officer, said:  “The funds raised through the placing will allow us to continue to progress the opportunities that we are seeing, particularly in our most advanced project areas in the construction and textile sectors.

“Having streamlined the business and with a renewed focus, we continue to believe the company has significant potential.  We look forward to reporting on our progress in due course.”

The net proceeds of the placing will be used to continue commercialisation work for the company’s products, primarily focusing on the construction and leisure sectors and for general operational and working capital purposes.

A short statement regarding Ricketts resignation was released this week.

It said: “Neill has led the Company since it was founded, through its IPO in 2013 and its subsequent acquisitions both in the UK and overseas.  He remains a significant shareholder.

“Neill is now on garden leave and ceases to have day-to-day responsibilities unless required by the company, but will remain a director of Versarien and be entitled to attend and vote at Board meetings for the duration of his 12 month notice period.

“The board of Versarien intends to collectively look to appoint a successor. The board would very much like to thank Neill for his contribution and dedication to the Company since its formation and looks forward to his ongoing support.”