14th Apr 2014 09:11
LONDON (Alliance News) - Engineering materials company Versarien PLC said Monday that it has raised GBP5.5 million in a share placing, partly to fund the acquisition of a majority stake in 2-D Tech Ltd.
Versarien will acquire 85% of 2-D Tech from the University of Manchester for GBP440,000 in cash and shares. Versarien will fund at least two further graphene related research projects with the university for GBP300,000, also covered by the placing.
The funds were raised at a placing price of 26 pence per share, which Versarien said was a 7.14% discount to the closing mid-market price of its shares last Friday.
Shares in Versarien were trading up 1.8% at 28.50 pence Monday morning.
The remaining funds will be used for investment and working capital.
After the acquisition Versarien will pay the University and the Chief Technology Officer of 2-D Tech Branson Belle up to GBP300,000 in royalty payments, based on a payment of 5% of the gross annual revenues of 2-D Tech. The University will receive 94.8% of these payments, and Belle the remaining 5.2%.
Versarien does not expect the acquisition to contribute to its revenue for the current year, and its prospects for the year to end-March 2015 remains in line with market forecasts.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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