(Alliance News) - Versarien PLC on Monday said it agreed its plant and equipment in South Korea for GBP604,000 to MCK Tech Co Ltd, alongside exclusive licence deal with MCK Tech for the use of five patents.
The Cheltenham, England-based engineering materials company said the disposal is part of its continued turnaround strategy, of which "an integral part...is to dispose of non-core businesses and assets".
The net proceeds will be used for its corporate and working capital purposes, while the company continues to "actively seek additional short and longer term funding solutions to support its turnaround strategy".
Versarien said the plant and equipment acquired from Hanwha Aerospace in South Korea in 2020 were identified as non-core and marketed for sale.
It said its mature businesses AAC Cyroma Ltd and Total Carbide Ltd continue to be marketed for sale, with discussions progressing with a number of interested parties. It noted, however, that the timing of any further asset sales and the quantum of the funds that may be received remains uncertain.
Meanwhile, Versarien also granted an exclusive licence to MCK Tech for an initial period of five years to use five patents owned by the company in its business in Korea.
These five patent licences are in addition to 14 patents that Versarien licences to Graphene Lab Co Ltd.
MCK Tech will pay Versarien an amount equal to 4.5% of the total sales revenue earned from products manufactured using the intellectual property, Versarien said.
It added that if the sales revenue derived from the intellectual property is less than GBP250,000 over the first two years of the licence, the licence will then terminate and MCK Tech will pay Versarien GBP40,000 for use of the intellectual property.
Versarien said the licence deal was in line with its strategy to monetise intellectual property through licensing.
Shares in Versarien were up 16% to 0.11 pence each in London on Monday morning.
By Greg Rosenvinge, Alliance News senior reporter
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Versarien (VRS)