(Alliance News) - Versarien PLC on Friday said it raised GBP650,000 via the placing of new shares, with the net proceeds set to be used as bridge finance to extends its cash runway ahead of any funds received from asset sales.
The Cheltenham, England-based engineering materials company said it placed 65.0 million new shares in the company at a price of 1.0 pence per share.
Shares in Versarien dropped 37% to 1.13 pence each in London on Friday morning.
Versarien the net proceeds of the placing will be used for working capital purposes and as bridge financing ahead of anticipated asset sales.
The company reiterated a previous announcement that it is pursuing a disposal of assets, including its mature businesses and the intellectual property and plant acquired from Hanwha Aerospace in 2020.
A number of interested parties are reviewing information in the data rooms, Versarien said, and that the timing of any asset sales and the amount of cash that may be received is uncertain.
Chief Financial Officer Chris Leigh participated in the placing by purchasing 1.0 million new shares, taking his total share holding to 1.3 million shares or 0.4% of Versarien's enlarged total share capital.
Chief Technology Officer Stephen Hodge also bought 1.0 million new shares, now owning 1.05 million shares or 0.3% of enlarged total share capital.
Leigh said the board decided it would raise further finance to assist in bridging to the proposed asset sales, following a general meeting held earlier this month. He added Versarien will update shareholders on continuing progress in its turnaround strategy in the coming months.
On Tuesday last week, Versarien said it trimmed its cost base, made progress on its turnaround strategy, and that it was seeing interest in some assets it considered disposing.
Versarien said it reduced its cost base, with its loss before interest, tax, depreciation, amortisation and exceptional items at a "much lover level" than in the first half of the year. Versarien's first-half ended on March 31.
By Greg Rosenvinge, Alliance News reporter
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Versarien (VRS)