Last checked at 9 Aug 2019 07:54
9 August 2019
Versarien plc
("Versarien" or the "Company")
China Update and Clarification
Versarien plc (AIM: VRS), the advanced materials engineering group, is pleased to provide an update and clarification on its plans for expansion into China.
On 15 April 2019, the Company announced that it had signed a term sheet with the Beijing Institute of Graphene Technology Co. Ltd ("BIGT") covering the proposed cooperation between the parties to develop Versarien's graphene related business in China. The term sheet envisaged that BIGT would provide funding to Versarien for the proposed wholly owned subsidiary ("WFOE") and other corporate purposes in the form of an equity investment, providing BIGT with a holding of up to 15% of the issued share capital of the Company, whilst giving existing and prospective private and institutional shareholders the opportunity to participate on the same terms.
The Company can confirm that discussions between BIGT and the Company remain ongoing and that the WFOE has now been successfully incorporated as the Beijing Versarien Technology Company Limited and the business licence has been granted by the relevant Chinese authorities. This will enable the Directors to progress the funding discussions with BIGT. We look forward to updating shareholders regarding developments as appropriate.
The Company has previously stated that any deal has to be in the best interests of it and its shareholders and consequently the Company has been working with several parties to secure the most appropriate deal in China. With regards to a reference made by Neill Ricketts, CEO of the Company, on 8 August 2019, on Twitter, that the Company had another Chinese investor who was interested in up to 29.9% of the Company, the Company can confirm it previously received a proposal from an investor that cited interest to subscribe for shares up to that amount, but this was rejected and the Board determined that the terms with BIGT provided the best opportunity.
Enquiries:
Versarien Neill Ricketts, CEO Chris Leigh, CFO | +44 (0)1242 269 122 |
Canaccord Genuity (Nominated Adviser and Broker) Bobbie Hilliam Emma Gabriel | +44 (0)20 7523 8000 |
IFC Advisory (Financial PR and IR) Tim Metcalfe Graham Herring Heather Armstrong | +44(0)20 3934 6630
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About Versarien
Versarien plc (AIM:VRS), is an advanced engineering materials group. Leveraging proprietary technology, the Group creates innovative engineering solutions for its clients in a diverse range of industries. Versarien has six subsidiaries operating under two divisions:
Graphene and Plastics
2-DTech Ltd, which specialises in the supply, characterisation and early stage development of graphene products. www.2-dtech.com
AAC Cyroma Limited, which specialises in the supply of vacuum-formed and injection-moulded products to the automotive, construction, utilities and retail industry sectors. Using Versarien's existing graphene manufacturing capabilities, AAC will have the ability to produce graphene-enhanced plastic products. www.aaccyroma.co.uk
Cambridge Graphene Limited, supplies novel inks based on graphene and related materials, using patented processes to develop graphene materials technology.
www.cambridgegraphene.com
Gnanomat S.L. ("GNA"), based in the Parque Cientifico Madrid, Spain, is a company capable of utilising Versarien's graphene products in an environmentally friendly, scalable production process for energy storage devices that offer high power density, almost instant recharging and very long lifetimes for use in electrical vehicles and portable electronics products.www.gnanomat.com
Hard Wear and Metallic Products
Versarien Technologies Limited has developed an additive process for creating advanced micro-porous metals targeting the thermal management industry and supplies extruded aluminium. www.versarien-technologies.co.uk
Total Carbide Limited, a leading manufacturer in sintered tungsten carbide for applications in arduous environments such as the oil and gas industry. www.totalcarbide.com