20th Sep 2021 12:38
(Alliance News) - Haydale Graphene Industries PLC on Monday said it has raised GBP5.1 million via an oversubscribed placing, retail offer and subscription.
Shares in Ammanford, Wales-based Haydale were trading down 17% at 6.42 pence each in London on Monday afternoon.
The graphene and nanomaterial technology company said 85.1 million shares were placed to new and existing shareholders for 6p each.
Haydale said the placing price represented a 22% discount to Friday's closing price.
Significant shareholders Quilter PLC and Anthony Best increased their stakes by 6.8 million and 4.2 million shares respectively. Following the fundraise, Quilter PLC holds 51.9 million shares or a 10% stake in the company, whilst Best has 47.8 million or a 9.4% stake.
Directors David Banks, Keith Broadbent, Mark Chapman and Theresa Wallis raised around GBP35,429 altogether, through a collective subscription of 590,477 shares at the placing price.
Besides funding working capital requirements, Haydale said the cash raised will be used support its US rollout and the expansion of manufacturing capacity at its Ammanford site.
The move comes after Covid-19 restricted revenue in the company's financial year ended June 30.
Revenue declined to GBP2.9 million in Haydale's recent financial year, down 1.7% from GBP3.0 million the year earlier and 16% below the GBP3.5 million noted in financial 2019, before the pandemic. Unaudited gross profit fell 3.9% year-on-year to GBP1.98 million from GBP2.06 million, the company noted.
Following these results the company said: "The clear priority remains to commercialise the group's cutting edge technology and the progress it has made since the last fundraise gives the group the confidence that it is moving towards an inflexion point as it sees a more wide spread adoption of the benefits that our technology offers."
The company added that it has made a "positive start" to financial 2022.
By Scarlett Butler; [email protected]
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