Graphene manufacturer Versarien has called for a general meeting with its shareholders to discuss the survival of the business.
The Gloucestershire engineering firm, which makes products using the nanomaterial for the automotive, clothing, biomedical and aerospace sectors, last week reported a pre-tax loss of £3.4m for the six months to March - up from a £2.1m loss for the same period last year. The AIM-listed firm, which has previously secured partnerships with fashion label Superdry and kit suppliers of the England rugby team Umbro, saw group revenue dip from £3.9m to £2.6m, with graphene revenue in particular sliding from around £1m to around £90,000.
The general meeting will be held on July 4 with the purpose of renewing the company's share capital authorities. Bosses are encouraging shareholders to vote through measures to ensure the survival of the business.
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As part of a turnaround strategy Versarien is marketing for sale both its mature businesses and the IP and assets required from Hanwha Aerospace in December 2020.
If the sale is successful it is estimated that funds will provide a "sufficient cash runway" for the company's anticipated needs over the next 24 months.
Yet, the timing of the sale and funds received is uncertain so the board is asking shareholders for new authorities to provide Versairen with the ability and flexibility to raise further funds through the issue of additional equity capital should it be required.
In a statement the board said: "The board considers that the renewal of share authorities and the resolutions are in the best interests of the company and its shareholders as a whole and accordingly recommends that shareholders vote in favour of the resolutions.
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"If the resolutions are approved at the general meeting, there is no certainty that the company will be able to raise funding at a suitable valuation or at all.
"If the resolutions are not approved at the general meeting and the company does not receive sufficient proceeds from asset sales in a timely manner and no alternative funding can be raised, the company's ability to operate as a going concern will be put at risk."
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