{"id":7903,"date":"2023-10-12T07:57:05","date_gmt":"2023-10-12T06:57:05","guid":{"rendered":"https:\/\/www.thebusinessdesk.com\/south-west\/?p=7903"},"modified":"2023-10-12T08:00:38","modified_gmt":"2023-10-12T07:00:38","slug":"crisis-hit-manufacturer-faces-funding-block-after-share-price-fall","status":"publish","type":"post","link":"https:\/\/www.thebusinessdesk.com\/south-west\/news\/7903-crisis-hit-manufacturer-faces-funding-block-after-share-price-fall","title":{"rendered":"Crisis-hit manufacturer faces funding block after share price fall"},"content":{"rendered":"

Crisis-hit Versarien is to ask shareholders to approve a share reorganisation that would be needed to enable the graphene manufacturing specialist to raise funds to keep the company going.<\/p>\n

The Gloucestershire-based company has been struggling for years, with its share price losing 99% of its value since its 2018 highs.<\/p>\n

\"\"

Neill Ricketts<\/p><\/div>\n

In March, founder and chief executive Neill Ricketts departed<\/a>, at the end of a six-month period when the company lost \u00a33.4m<\/a>.<\/p>\n

Versarien has been fighting for survival since then, making significant cuts to its operating costs.<\/p>\n

It had been looking to raise money through the sale of its mature businesses and the IP and equipment arising from the acquisition of assets from Hanwha Aerospace in 2020.<\/p>\n

But is now concerned that it might not complete the deals in time “before the existing working capital is exhausted”.<\/p>\n

It has raised \u00a31.5m in three funding rounds since March. However it would now be blocked from raising money on the Alternative Investment Market (AIM) because its share price is below the 1p nominal value of its shares.<\/p>\n

Versarien has 330m shares, but last night’s closing price was just 0.94p. This values the company at just \u00a33m.<\/p>\n

Versarien is holding a general meeting on October 30 for shareholders to approve a share capital reorganisation.<\/p>\n

It wants to split its existing 1p share into a 0.1p ordinary share and a 0.9p deferred share. The deferred share would not be traded on AIM, and the company’s statement to shareholders acknowledged it would “have little economic value”.<\/p>\n

However it warned shareholders “if the resolutions are not approved at the General Meeting, the company may not be able to raise equity funding, and if no alternative funding can be secured, the company’s ability to operate as a going concern will be put at risk”.<\/p>\n","protected":false},"excerpt":{"rendered":"

Shareholder approval needed for move that would enable it to raise vital funding<\/p>\n","protected":false},"author":18,"featured_media":1984,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,120781],"coauthors":[81],"class_list":["post-7903","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-manufacturing","category-markets","tag-featured-story","tag-gloucestershire"],"yoast_head":"\nCrisis-hit Versarien faces funding block after share price fall - South West<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.thebusinessdesk.com\/south-west\/news\/7903-crisis-hit-manufacturer-faces-funding-block-after-share-price-fall\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Crisis-hit Versarien faces funding block after share price fall - 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