Versarien plc (LON:VRS), the advanced materials engineering group, has announced it has raised £615,000 (before expenses) by way of a placing of 492,000,000 new ordinary shares in the capital of the Company at a price of 0.125 pence per share.
Highlights
● Versarien has raised £615,000, before expenses, through the placing of 492,000,000 new ordinary shares at a price of 0.125 pence per share
● The net proceeds of the Placing will be used for corporate and working capital purposes as the Company continues to progress its turnaround strategy following the recent sale of its South Korean assets and licencing agreement with Montana Química LTDA (“Montana”)
● The issue of the Placing Shares utilises the remaining authorities granted by shareholders at the general meeting of the Company held on 10 January 2024 and therefore no shareholder approval is required for the Placing
Use of Proceeds and Turnaround Strategy
The net proceeds of the Placing will be used for corporate and working capital purposes as the Company continues to implement its turnaround strategy. The recent announcements regarding the sale of Versarien’s South Korean assets and licencing of IP to MCK Tech Co. Ltd, plus the licencing agreement with Montana provide the Versarien board with additional confidence that the strategy is working. The Company continues to pursue a variety of commercial opportunities in its target markets of construction and leisure, and in other areas.
As announced on 11 March 2024, the Company’s mature businesses, AAC Cyroma Limited and Total Carbide Limited, continue to be marketed for sale and the Company is progressing discussions with interested parties.
Stephen Hodge, Chief Executive Officer of Versarien, commented:
“We are very pleased to have raised these funds which will facilitate further progress following the positive developments regarding the sale of the South Korean assets and licencing deal with Montana, and will assist in laying the foundations for us to implement a longer-term strategy for the business. We look forward to providing further updates in due course.”
Admission and Total Voting Rights
Application has been made for admission of the Placing Shares to be admitted to trading on AIM (“Admission”) on or around 25 March 2024. The Placing Shares will rank pari passu in all respects with the Company’s existing ordinary shares. Following Admission, the total number of ordinary shares in the Company in issue will be 1,488,169,507. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company under the FCA’s Disclosure and Transparency Rules.
