Versarien raises £650,000 in placing

14th Jul 2023 08:43

(Sharecast News) - Versarien said on Friday that it had raised £650,000 in a placing for working capital purposes.

The AIM-listed advanced engineering materials company, which placed the shares at 1p each, also said the proceeds will be used as bridge finance to extend its cash runway ahead of any funds received from asset sales.

Versarien had already announced that it was pursuing a disposal of assets, including its mature businesses and the intellectual property and plant acquired from Hanwha Aerospace in 2020. It said a number of interested parties are reviewing information in the data rooms.

"The timing of any asset sales and the quantum of the funds that may be received is uncertain," it added.

Chief financial officer Chris Leigh said: "Following the passing of the resolutions at the general meeting held earlier this month, the board has decided that it would be prudent to raise further finance to assist in bridging to the proposed asset sales.

"We look forward to updating shareholders on continuing progress with the turnaround strategy in the coming months."

At 0840 BST, the shares were down 39% at 1.09p.