Struggling Teesside firm Applied Graphene Materials could be sold to a Canadian graphene company before its shell company is delisted from AIM.
The loss-making business, which specialises in graphene products used in coatings and composite, revealed the proposal to shareholders who are likely to lose out as a result of the move. It follows a "strategic review" of the firm announced in November alongside the start of redundancy consultations for Applied Graphene's 30 staff at its Redcar base.
Ontario-based graphene commercialisation specialist Universal Matter Inc will buy Applied Graphene's main trading entity for £1.07m (US$1.3m), some of which will be used to repay creditors, staff, advisors and the company's operating costs before the plc is wound down. Applied Graphene has previously warned it would run out of cash by the end of February and in the latest update said it was "very unlikely" to be able to return funds to shareholders.
