(Alliance News) - Applied Graphene Materials PLC on Tuesday warned it could run out of cash, but said an equity raise isn't possible at the moment.
Applied Graphene shares were down 40% to 6.60 pence each in London on Tuesday afternoon. The stock is down 76% in the past 12 months.
The company early Tuesday noted a media report published on Monday by ShareProphets. This said the Cleveland, England-based graphene materials maker was considering an equity raise. Applied Graphene denied this.
Though it previously set out plans to raise further equity to fund operations and business development, Applied Graphene on Tuesday said that recent investigations into the feasibility of a share offer concluded it would no longer be possible.
Applied Graphene attributed this to unfavourable conditions in small-cap equity markets.
However, it acknowledged that its financial situation is precarious.
The company will need additional funding to extend its cash runway beyond this coming January 31 - less than three months away - by which point its current financial resources will be depleted.
By Holly Beveridge; hollybeveridge@alliancenews.com
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