Struggling firm calls AGM as it battles for survival
Struggling Gloucestershire firm Versarien has called a general meeting of its shareholders as it battles for its survival.
The firm is planning to hold the meeting on July 4th and is urging shareholders to vote through measures which will help ensure the survival of the business which has seen its share price collapse in recent months.
The general meeting will be held at the London offices of Fieldfisher and the purpose is to renew the company’s share capital authorities.
As part of its turnaround strategy the company is marketing for sale both its mature businesses and the IP and assets acquired from Hanwha Aerospace in December 2020.
If the sales go through the funds will provide a sufficient cash for the company’s anticipated needs over the next 24 months.
However, the timing of the asset sales and the quantum of the funds that may be received is uncertain, so the board is asking shareholders for new authorities to provide the company with the ability and flexibility to raise further funds through the issue of additional equity capital.
A statement said: “The board considers that the renewal of the share authorities and the resolutions are in the best interests of the company and its shareholders as a whole and accordingly recommends that shareholders vote in favour of the resolutions.
“If the resolutions are approved at the general meeting, there is no certainty that the company will be able to raise funding at a suitable valuation or at all.
“If the resolutions are not approved at the general meeting and the company does not receive sufficient proceeds from asset sales in a timely manner and no alternative funding can be raised, the company’s ability to operate as a going concern will be put at risk.”
Last week the firm announced its losses have widened after an “extremely challenging” period.
The firm, which makes products using the nanomaterial graphene for the automotive, clothing, biomedical and aerospace sectors, reported a pre-tax loss of £3.4m for the six months to March – up from a £2.1m loss for the same period last year.
The AIM-listed firm, which has had partnerships with fashion firm Superdry and kit suppliers of the England rugby team Umbro, saw revenues fall from £3.9m to £2.6m, with graphene revenue in particular dropping from around £1m to around £90,000.Company
Last year co-founder Neill Ricketts resigned as chief executive.
