3rd May 2023 11:04
(Alliance News) - Versarien PLC on Wednesday said it raised just over GBP530,00 from a placing of new shares to support its new "turnaround strategy".
The Cheltenham, England-based engineering materials company raised GBP531,624 before expenses from the placement of 42.5 million new shares at 1.25 pence per share.
The stock was down 40% to 1.23p each in London on Wednesday morning, giving Versarien a GBP2.8 million market capitalisation.
Versarien said the fresh cash will be used for general operational and working capital purposes, as well as for commercialisation activities primarily in the construction and leisure sectors.
This is in line with the company's new strategic roadmap, which is currently being finalised, it said.
Chief Financial Officer Chris Leigh said: "As previously announced, the company requires further funding to support its activities, and the board welcomes the investor interest in this placing."
Versarien said it hopes to announce a "new strategic roadmap and financial plan" in the coming weeks, alongside continuing to progress and assess asset disposal options, including disposing of the "mature" businesses that are no longer core activities for Versarien.
It hopes to provide further updates on this "in due course".
By Greg Rosenvinge, Alliance News reporter
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