Versarien raises £650,000 in Placing to assist in bridging proposed asset sales

Versarien plc (LON:VRS), the advanced materials engineering group, has announced it has raised £650,000 (before expenses) by way of a placing of 65,000,000 new ordinary shares in the capital of the Company at a price of 1.0 pence per share.

Highlights

·    Versarien has raised £650,000, before expenses, through placing of 65,000,000 new ordinary shares in the capital of the Company at a price of 1.0 pence per share

·    The net proceeds of the Placing will be used for working capital purposes and as bridge finance to extend the Company’s cash runway ahead of any funds received from asset sales

·    The issue of the Placing Shares is within existing authorities granted by shareholders at the general meeting of the Company held in July 2023 and therefore no shareholder approval is required for the Placing

·    Company directors, Chris Leigh and Stephen Hodge, participated in the Placing

Use of Proceeds and Turnaround Strategy

The net proceeds of the Placing will be used for working capital purposes and as bridge finance to extend the Company’s cash runway ahead of any funds received from asset sales.

As previously announced, the Company is pursuing a disposal of assets, including its mature businesses and the intellectual property and plant acquired from Hanwha Aerospace in 2020, and a number of interested parties are reviewing information in the data rooms. The timing of any asset sales and the quantum of the funds that may be received is uncertain.

Chris Leigh, Chief Financial Officer of Versarien, commented:

“Following the passing of the resolutions at the general meeting held earlier this month, the Board has decided that it would be prudent to raise further finance to assist in bridging to the proposed asset sales. We look forward to updating shareholders on continuing progress with the turnaround strategy in the coming months.”

Director Participation

The following directors of Versarien participated in the Placing:

DirectorNumber of Placing Shares subscribed forTotal Ordinary Shares following the PlacingTotal interest in the enlarged share capital
Chris Leigh, Chief Financial Officer1,000,0001,315,0000.40%
Stephen Hodge, Chief Technology Officer1,000,0001,046,7740.32%

Related Party Transaction

The Placing participation from Chris Leigh and Stephen Hodge is considered a related-party transaction for the purposes of Rule 13 of the AIM Rules for Companies. The directors (other than Chris Leigh and Stephen Hodge) consider, having consulted with SP Angel Corporate Finance LLP, the Company’s nominated adviser, that the participation by Chris Leigh and Stephen Hodge in the Placing is fair and reasonable in so far as Versarien’s shareholders are concerned.

Admission and Total Voting Rights

Application will be made for admission of the Placing Shares to be admitted to trading on AIM on or around 20 July 2023. The Placing Shares will rank pari passu in all respects with the Company’s existing ordinary shares. Following Admission, the total number of ordinary shares in the Company in issue will be 330,779,690. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company under the FCA’s Disclosure and Transparency Rules.

Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them:

1.        Details of the person discharging managerial responsibilities/person closely associated
(1)        Full name of person Dealing1. Chris Leigh 2. Stephen Hodge
2.  Reason for notification
(2)        Position/status1. Chief Financial Officer2. Chief Technology Officer
(3)        Initial notification/ AmendmentInitial notification
3.  Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor
(4)        Name of entityVersarien plc
(5)        LEI213800D6NZED7V8W2Z34
4.  Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
(6)        Description of the financial instrument, type of instrumentOrdinary shares of 1 pence each
(7)        Identification codeGB00B8YZTJ80
(8)        Nature of the transactionParticipation in Placing
(9)        Price(s) and volume(s)Share Prices(s)Share Volume(s)1.         1 pence1,000,0002.         1 pence1,000,000
(10)      Aggregated information:- Aggregated volume- PriceSingle transaction as in 4(d) aboveShare Prices(s)Share Volume(s)1.          1 pence1,000,0002.          1 pence1,000,000
(11)      Date of transaction14 July 2023
(12)      Place of transactionOutside a trading venue
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