(Alliance News) - Versarien PLC on Wednesday it raised GBP318,000 before expenses via a placing, with the net proceeds set to be used to continue commercialisation work for its products.
The Cheltenham, England-based engineering materials company said 10.6 million new shares will be admitted on AIM in London on or around Tuesday next week, purchased via the placing at a price of 3 pence per share.
Shares in Versarien were up 1.9% to 3.82p each in London on Wednesday afternoon.
It said the net proceeds would be used to continue its commercialisation work, primarily in the construction and leisure sectors, alongside general operational and working capital purposes.
"The funds raised through the placing will allow us to continue to progress the opportunities that we are seeing, particularly in our most advanced project areas in the construction and textile sectors," said Chief Financial Officer Chris Leigh.
"Having streamlined the business and with a renewed focus, we continue to believe the company has significant potential. We look forward to reporting on our progress in due course."
On Friday last week, Versarien said Neill Ricketts resigned as chief executive officer. The company said it was considering the "appropriate longer term management structure" and will update in due course. On the same day by around midday, shares plunged 33% in reaction to the news.
By Greg Rosenvinge, Alliance News reporter
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Versarien (VRS)