(Alliance News) - Applied Graphene Materials PLC on Wednesday said it has decided to re-align itself and focus on graphene dispersion, a process of mixing graphene with other materials to enhance the mechanical and barrier properties of the material.
The company said it will work primarily to grow revenue from a "pipeline of approximately 100 active engagements".
The restructure is intended to shrink Applied Graphene's operating cost base and extend its cash runway to two years at least, so it is in a better position for delivering "new products to the market place".
Applied Graphene will consult with employees with the goal of "implementing a re-alignment of its operations towards dispersion and application know-how and customer support".
The firm's GBP4.3 million cash operating base for its year to July 31 is set to drop around GBP900,000 for its year ending July 2020 and then another GBP1.1 million in financial 2021. The cost of the changes is predicted to be around GBP200,000, with the firm's cash runway extended to the fourth quarter of 2021 at the earliest.
Applied Graphene will publish its results October 16. It expects to record a loss before interest, depreciation, taxation, and amortisation of GBP4.6 million for financial 2019, with revenue and other income totaling GBP120,000. As at July 31, the company's cash stood at GBP6.1 million.
Chief Executive Adrian Potts said: "Our absolute priority and focus remains to support our commercial partners in successfully incorporating graphene, achieving product launches and growing revenues. We have built an exceptional technology base around dispersion know-how and practical end-use of our products. The board strongly believes that [Applied Graphene] is well placed in graphene and target market sectors and is confident that, with the reduced cost base and existing cash resources, the company will have sufficient time to significantly grow revenues in the emerging graphene market."
Shares in Applied Graphene were down 3.2% at 18.40 pence in London on Wednesday afternoon.
By Anna Farley; annafarley@alliancenews.com
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