23rd Mar 2020 18:24
(Alliance News) - Advanced materials firm Versarien PLC on Monday said it has raised GBP6 million from US-based Lanstead Capital Investors.
Lanstead is subscribing for 15 million new shares in Versarien at 40 pence each. The shares represent 9.7% of its existing share capital and are a 54% premium to its closing price on Friday last week.
Shares closed 12% higher on Monday at 29.00p each, though a month ago they traded at 50.00p.
"We are delighted to welcome Lanstead as a significant institutional shareholder in Versarien. The proceeds of the sharing agreement will underpin our activities over the next two years," said Versarien Chief Executive Neill Ricketts.
"The mechanics of the sharing agreement allow Versarien to benefit from future share price appreciation and reflect an alignment of both the company and Lanstead's belief in the potential for substantial value enhancement for shareholders through the execution of our graphene commercialisation strategy.
"With the company having a sound financial base and despite the background of the current global Covid-19 pandemic, I am confident the company will continue to make significant progress in the coming months," Ricketts continued.
"In particular, we continue to advance our discussions in China and elsewhere and this fundraise does not preclude us from obtaining additional funding from other sources to accelerate the development of our graphene commercialisation strategy should appropriate value-enhancing options be available."
By George Collard; [email protected]
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