Proactive Investors - Run By Investors For Investors

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
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 --

View full HAYD profile View Profile

Haydale Graphene Industries PLC Timeline

Related Articles

BAC Mono
July 11 2019
Haydale is building up commercial sales as the number of applications using the material increase
May 24 2019
In May, Itaconix received its first purchase order from chemical firm Nouryon for its personal care polymer following the signing of an exclusive supply agreement in February
Grape bunches
April 03 2019
Eden Research's first product Mevalone, a grape fungicide which is used to target the botrytis disease, is currently being sold throughout the southern EU zone and Kenya
Copyright ©, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use