Graphene firm could cease to be able to pay debts by May without more funding

Gloucestershire engineering firm Versarien has warned it will cease to be able to pay its liabilities by mid-May if it does not secure further funding, despite a narrowing of losses for the year.

The graphene manufacturer reported a loss for the 12 months ending September 30, 2024, of £4.3m - down from £14.2m in 2023. Cash in the bank stood at £100,000 for the period, falling from £600,000 for the same time the year previously.

The Longhope-based company said on Thursday (March 27) the board was in "advanced discussions" with a third party with a view to raising equity funding of £500,000 before mid-May 2025 at a premium to the current share price.

If a deal is completed, it would equate to approximately 15% of the company's enlarged share capital, Versarien said.

At a company general meeting earlier in the month, shareholders approved resolutions to give the firm's directors the authority to allot 2.99 billion shares without pre-emption-rights.

The decision means if the anticipated investment does not complete, the board will be able to issue new shares to raise further equity capital to make sure the company has sufficient working capital to carry on its business.

Dr Stephen Hodge, chief executive of Versarien, said: "I am confident that our strategic direction, combined with our focus on commercialising intellectual property and securing strong partnerships, will help us navigate challenges and deliver robust growth.

"Our diverse portfolio of technologies is setting the stage for continued success, and we look forward to reporting further progress through 2025."

Earlier in March, Versarien completed the sale of its South Korean factory and equipment for more than £600,000. The agreement with MCK Tech was announced 12 months ago as part of a strategy to monetise intellectual property (IP) through licensing.

In December the business also revealed its Spanish subsidiary had secured a €804,000 grant to finance a two-year project relating to a high-tech energy storage devices.

It also signed an agreement with infrastructure group Balfour Beatty last year to develop a range of low-carbon, graphene‐infused, 3D‐printable mortars for civil construction.