logo-loader
Haydale Graphene Industries PLC

Haydale Graphene to reboot with big discount fund raise

The aim is to reset the cost base and consolidate the group's position over the next 6 months

graphene
Haydale wants to shift from R&D to commercial sales

Haydale Graphene Industries Group PLC (LON:HAYD) is raising up to £7.8mln at a huge discount to the market price to shore up its finances.

Of the money, around £3.8mln has been raised through an oversubscribed placing of 188.125mln new ordinary shares at 2p each, with a further £0.2mln coming from a share subscription for 11,875 mln shares.

READ: Haydale confirms funding talks with institutions

Meanwhile, a 7-for-1 open offer to qualifying shareholders at the same price is designed to bring in up to a further £4mln. Just a month ago, the shares were changing hands at 27.4p. In afternoon trading, shares in Haydale Graphene were changing hands at 3.05p each.

The graphene and composite materials specialist lost £3.5mln (£2.67mln) in the six months to December on sales of £1.6mln (£2mln).

Keith Broadbent has moved up to group chief executive from COO and he and three fellow directors are putting up £200,000 in the placing.

Any money raised will be used to fund general working capital, restructuring costs and investment in equipment.

Haydale has also identified an initial £1mln of annualised savings, primarily in the UK, though it is recruiting specific sales personnel to help it shift from R&D to commercial sales.

David Banks, interim executive chairman, said the aim is to reset the cost base and consolidate the group's position over the next six months with the focus on SiC in the US, functionalised inks and graphene composites.

There will be a marginal impact on sales in the current financial year as the changes are bedded in, he added.

Longer-term, the plan is to leverage its presence in the US to move to profitability.

 -- Updates with placing completion details, share price --

Quick facts: Haydale Graphene Industries PLC

Price: £0.02

Market: LSE
Market Cap: £5.48 m
Follow

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Haydale Graphene Industries PLC named herein, including the promotion by the Company of Haydale Graphene Industries PLC in any Content on the...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Haydale Graphene's Ray Gibbs at the opening of the Graphene Engineering...

Ray Gibbs, president of business development at Haydale Graphene Industries PLC (LON:HAYD), spoke to Proactive London's Andrew Scott while at the Graphene Engineering Innovation Centre in Manchester for its official opening. Haydale was one of the first companies to sign up with the GEIC...

on 11/12/18

2 min read

;