Graphene manufacturer Versarien has announced a placing to raise £531,624 (before expenses) and an update on the company's turnaround strategy.
Founded in an engineer's garage, the Gloucestershire-based advanced engineering materials firm previously warned it would need “continuing support” from investors after challenging economic conditions “delayed the commercialisation we were anticipating” for its products.
The firm has raised £531,624 through a placing on the AIM market. The net proceeds of the placing will be used for general operational and working capital purposes and for commercialisation activities primarily in the construction and leisure sectors, in line with the company's new strategic roadmap which is being finalised.
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Meanwhile David Stone and his team at Prompt Business Strategies Limited have been engaged to aid the board in developing both its strategic and management plans.
The team have been working closely with the board to develop a strategy that seeks to preserve appropriate intellectual property within the company, whilst significantly reducing operational costs to facilitate a cash runway that will allow Versarien to deliver commercially in its targeted markets.
In addition, the company continues to progress and assess asset disposal options, including disposing of the mature businesses, that are no longer core activities for Versarien.
Chris Leigh, chief financial officer of Versarien, commented: "As previously announced, the Company requires further funding to support its activities and the Board welcomes the investor interest in this Placing. We continue to focus on completing our strategic reorganisation and commercial roadmap and look forward to sharing this with shareholders in due course."
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