(Alliance News) - Applied Graphene Materials PLC on Wednesday said it has agreed to sell its main operating subsidiaries, as it prepares to wind up the business on a host of financial challenges.
The Cleveland, England-based graphene materials manufacturer has signed a deal with Universal Matter UK Ltd, to sell the entirety of its shares in Applied Graphene Materials UK Ltd and Applied Graphene Materials LLC, its main operating subsidiaries, for a total of USD1.3 million.
Universal Matter UK is a London-based developer and supplier of graphene-based solutions.
News of the sale follows the suspension of the company's shares on February 1, after it failed to publish its annual report for 2022.
At the time, Applied Graphene said its available working capital would be fully depleted by the end of February, should no interim financing become available.
On Wednesday, the company said its performance had been impeded by Covid-19 disruption and supply chain challenges for basic raw materials. As a result, commercial development took longer than previously expected.
Despite conducting a strategic review through Alvarez & Marsal Europe LLP, the company failed to identify offers for funding.
As a result, Applied Graphene on Wednesday said it would be putting a resolution to shareholders to de-list the company's ordinary shares from trading on AIM, and to convert from a public limited company to a private limited company.
Applied Graphene said that both the transaction and delisting would be proposed to shareholders at a general meeting, the date of which will be announced "in due course", but should be before by April 30.
Company shares were flat at 5.50 pence on Wednesday in London, as they are currently suspended on AIM.
By Holly Beveridge; Alliance News reporter
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