Struggling manufacturer raises £500,000 through share offer
Struggling Gloucestershire manufacturer Versarien has raised just under £500,000 through a stock market placing.
The AIM listed company has been fighting for survival for a year and has put a turnaround plan into pace.
The company has raised £454,822 through a placing of 165,389,817 new ordinary shares in the capital of the company.
The net proceeds of the placing will be used for corporate and working capital purposes, together with providing bridge finance to extend the company’s cash runway ahead of any funds received from asset sales.
Versarien said it is continuing to pursue its stated turnaround strategy:
- to maintain and strengthen the Company’s scientific teams;
- use its know-how in construction and textiles to be a manufacturing light operation;
- to licence Versarien’s technology, brands and manufacturing understanding; and
- divest non-core activities.
As previously announced, the mature businesses and the intellectual property and plant acquired from Hanwha Aerospace in 2020 continue to be marketed for sale and the company is progressing discussions with a number of interested parties.
Chief executive Stephen Hodge said: “As we have previously announced, the company requires further funding to continue its turnaround strategy and we welcome the investor interest in this Placing.
“We continue to focus on this strategy, pursuing an encouraging pipeline of commercial and R&D projects, as well as technology licencing opportunities. We look forward to updating shareholders on continuing progress in the coming months.”