Struggling engineering firm raises £513,000 through share placing

Gloucestershire manufacturing firm Versarien has raised £513,000 as it looks to steady the ship.

The company, which recently parted company with founder and chief executive Neill Ricketts, had previously announced it needs to raise funds in order to remain a going concern.

The firm has raised £531,624 through a placing on the AIM market.

The net proceeds of the placing will be used for general operational and working capital purposes and for commercialisation activities primarily in the construction and leisure sectors, in line with the Company’s new strategic roadmap which is being finalised.

Meanwhile David Stone and a team from Prompt Business Strategies Limited have been engaged to aid the board in developing both its strategic and management plans.

The team have been working closely with the board to develop a strategy that seeks to preserve appropriate intellectual property within the company, whilst significantly reducing operational costs to facilitate a cash runway that will allow Versarien to deliver commercially in its targeted markets.

The new strategic roadmap and financial plan will be announced in the coming weeks.

In addition, the company continues to progress and assess asset disposal options, including disposing of the mature businesses, that are no longer core activities for Versarien.

Chris Leigh, chief financial officer, said: “As previously announced, the company requires further funding to support its activities and the board welcomes the investor interest in this placing.  We continue to focus on completing our strategic reorganisation and commercial roadmap and look forward to sharing this with shareholders in due course.”