Struggling firm raises £650,000 to balance its books

Struggling engineering firm Versarien has raised £650,000 through a share placing as it battles to balance its books.

The Gloucestershire company, which specialises in finding uses for Graphene has been hit by a series of problems including the resignation of its founder and chief executive Neill Ricketts.

The engineering firm, which makes products using the nanomaterial for the automotive, clothing, biomedical and aerospace sectors earlier this year reported a loss of £3.4m.

In its latest fundraise the company placed 65,000,000 new ordinary shares in the capital of the company at a price of one pence per share.

Versarien say the net proceeds of the placing will be used for working capital purposes and as bridge finance to extend the company’s cash runway ahead of any funds received from asset sales.

The placing of the shares is within existing authorities granted by shareholders at the general meeting of the Company held early this year.

Company directors, Chris Leigh and Stephen Hodge, participated in the placing.

The net proceeds will be used for working capital purposes and as bridge finance to extend the company’s cash runway ahead of any funds received from the sale of assets.

Versarien is looking to sell a number of  assets, including its mature businesses and the intellectual property and plant acquired from Hanwha Aerospace in 2020.

A number of interested parties are reviewing information however the timing of any asset sales and the quantum of the funds that may be received is uncertain.

Chris Leigh, chief financial officer of Versarien, said: “Following the passing of the resolutions at the general meeting held earlier this month, the board has decided that it would be prudent to raise further finance to assist in bridging to the proposed asset sales.

“We look forward to updating shareholders on continuing progress with the turnaround strategy in the coming months.”