Versarien - Page 2

Versarien has raised £454,822 before expenses (over USD$558,000) through a stock market placing as it continues its turnaround strategy.

Versarien said that net proceeds will be used for corporate and working capital purposes, together with providing bridge finance to extend the Company's cash runway ahead of any funds received from asset sales.

Versarien has announced the launch of a portfolio of graphene and related nanomaterial-based thermoplastic polymer compounds, branded under the name Polygrene. The Company says that the Polygrene line is the culmination of extensive collaborative efforts with the International Institute for Nanocomposites Manufacturing (IINM) at WMG, University of Warwick.

The new range has potential applications across a variety of industries, including sports equipment, construction products, aerospace and automotive components. This versatility showcases the adaptability and strength of the new graphene-infused materials.

Versarien has said it is making progress in line with its strategy as it cuts its cost base. The engineering materials company said it has reduced its cost base "significantly", with its loss before interest, tax, depreciation, amortization and exceptional items at a lower run rate than in the first half of the year. As a result, it said it has seen a reduction in cash burn.

Versarien said despite its reduced cost base, it is making progress in its strategy to license its technology, brands and manufacturing expertise, divest its non-core activities and Korean assets and strengthen its scientific teams.  Versarien said it would continue to preserve intellectual property within the group whilst reducing operating costs, as it seeks to become a “manufacturing light operation”.

Versarien has reported that its Spanish business has secured funding for a new project, in a boost to the group’s turnaround strategy. The Company said its majority-owned subsidiary, Gnanomat, has been awarded a grant of around €415,000 (around USD$445,660) by a government body.

Gnanomat will use the money to help develop and commercialize a new line of conductive inks based on Versarien's nanomaterials, for use in the production of electronic goods.

Researchers from the University of Surrey have developed a new thermo-active road solution that could help prevent potholes caused by freezing and thawing in the winter. A new project that will test this new approach has been awarded a £800,000 research fellowship from the Royal Academy of Engineering. The outcomes could improve how major roads across the United Kingdom are maintained and upgraded, even as climate change increases the challenge of keeping them fit for purpose.  

As part of this five-year research project, the Surrey team will work with advanced materials engineering company Versarien to develop a new graphene-enhanced microcapsule to dig into the soil beneath the surface when roads are resurfaced to improve heat conduction and storage.

Versarien has raised £650,000 (over USD$850,000) in a placing for working capital purposes.

The proceeds will be used for working capital purposes and as bridge finance to extend the Company's cash runway ahead of any funds received from asset sales.

Versarien has reported it is making progress on its turnaround strategy with significant cost savings already achieved.

This comes shortly after the Company reported a widened £3.4m pre-tax loss in its half-year results. Earlier this year, Versarien, which has previously secured partnerships with fashion label Superdry and kit suppliers of the England rugby team Umbro, said the tough economic conditions had delayed the commercialization of its products. 

Versarien plans to regroup around its commercial graphene applications (Cementene and Graphene Wear) in order to promote a recovery, while also cutting costs to stabilize the business, as the Company stated while also reporting its interim results.

In the results statement, Diane Savory, Versarien’s chair, said: "The period under review was extremely challenging from a financial perspective, both from a balance sheet point of view and with the decline in graphene revenues reflecting the ending of the DSTL development contract”. Revenues in the six months to end March 2023 were £2.62 million (2022: £3.89 million), with losses of £3.4 million (2022: £2.16 million), while cash at the end of the period £0.76 million with a further £0.53 million raised since.

Versarien has shared that trials of a precast concrete containing its Cementene water-based graphene mixture were shown to maintain its strength with 20% of the cement removed.

The initial results, carried out in tests at the accredited laboratory of Ireland-based Banagher Precast Concrete, “demonstrate the significant potential to reduce CO₂ emissions without impacting the performance of the concrete”, the AIM-listed company said. This is because producing 1kg of ordinary Portland cement emits around 0.8-0.9kg of CO₂ and roughly 500kg of cement is used per cubic metre of Banagher's precast concrete. Producing 1kg of Cementene is estimated to generate a higher level of CO₂ emissions, at 1.44 kg, but Versarien said because only around 5kg of Cementene is used per cubic metre of concrete and allows the removal of 20% of cement in the precast concrete mix, this would equate to a net saving of almost 73kg of CO₂ emissions per cubic metre of concrete poured.

Versarien has announced a placing to raise £531,624 (before expenses) through a placing on the AIM market. This follows recent difficulties and statements by the Company, that it will require further funding to support its activities as it continues to face a number of challenges. 

The net proceeds of the placing will be used for general operational and working capital purposes and for commercialization activities primarily in the construction and leisure sectors, in line with the Company's new strategic roadmap which is being finalized.