(Alliance News) - Haydale Graphene Industries PLC on Monday unveiled plans for an accelerated bookbuild and retail offer to raise GBP4.5 million, after the pandemic limited its revenue in financial 2021.
Shares in Ammanford, Wales-based Haydale were trading 19% at 6.22 pence each in London on Monday.
The graphene and nanomaterial technology company said it expects to issue 75 million shares to new and existing shareholders in a placing and retail offer via PrimaryBid.
Haydale said its 6p placing price offered a 22% discount to its shares' closing mid-price last Friday.
Directors of the company are set to raise around GBP35,429, through subscriptions to a total of 590,477 shares priced at 6p each.
The retail offer - via the PrimaryBid platform - is expected to conclude by market close in London on Monday, the company said. If oversubscribed, the offer may close earlier.
New placing and retail offer shares are likely to be admitted to the market by Thursday, the company added.
Besides funding working capital requirements, Haydale said the cash raised will be used support its US rollout and the expansion of manufacturing capacity at its Ammanford site.
The move comes after Covid-19 restricted revenue in the company's financial year ended June 30.
Revenue declined to GBP2.9 million Haydale's recent financial year, down 1.7% from GBP3.0 million the year earlier and 16% below the GBP3.5 million noted in financial 2019, before the pandemic. Unaudited gross profit fell 3.9% year-on-year to GBP1.98 million from GBP2.06 million, the company noted.
Following these results the company said: "The clear priority remains to commercialise the group's cutting edge technology and the progress it has made since the last fundraise gives the group the confidence that it is moving towards an inflexion point as it sees a more wide spread adoption of the benefits that our technology offers."
The company added that it has made a "positive start" to financial 2022.
By Scarlett Butler; scarlettbutler@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
Haydale (HAYD)