(Alliance News) - Applied Graphene Materials PLC on Wednesday said discussions are continuing with multiple parties regarding the sale of the company, or of its main operating subsidiary.
Applied Graphene shares were down 21% trading at 5.75 pence per share on Friday afternoon in London.
The Cleveland, England-based graphene materials manufacturer said it is in talks with various parties that have submitted non-binding indicative proposals for a transaction.
The company was previously aiming to complete a transaction by January 31, but has said it would likely need shareholder approval in a general meeting to complete the transaction on a solvent basis, which will not happen before the end of January.
The board now intends to choose a preferred bidder with whom it will enter into a legally binding contract by January 31. The transaction will be completed after shareholder approval has been obtained.
Applied Graphene also said it expects to run out of working capital by February 28, rather than the previously announced date of January 31, following cost reduction measures. The company said it may require interim funding to progress its sale to completion.
A process of statutory redundancy consultations with Applied Graphene employees is taking place, the company said.
By Harvey Dorset, Alliance News reporter
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