Grafenia PLC - Manchester-based printing and software company - Sells its wholly-owned subsidiary Works Manchester Ltd and some of the business and assets of its wholly-owned subsidiary Grafenia Operations Ltd for GBP3.2 million to Rymack Sign Solutions Ltd. Company says the consideration will be paid in several instalments. The disposal is expected to be finalised within three to four weeks. Says the disposal will see the company transition to a software licensing business.
Grafenia explains that in recent years its manufacturing operations have faced a challenging trading environment and has been operating below capacity. Says Rymack Sign Solutions, which operates as PFI Group, can use this spare capacity.
Enters into a five-year supply agreement under which Works Manchester will continue to manufacture and supply products to its partners via its platform. Works Manchester will also enter into a five-year software licence for the right to use the company's production platform, w3p, for GBP10,000 a month.
Company announces that Chief Executive Peter Gunning will step down with immediate effect. Chief Operating Officer Gavin Cockerill becomes CEO.
Current stock price: 5.77 pence
12-month change: down 2.0%
By Heather Rydings; heatherrydings@alliancenews.com
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