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Highlights:
- Versarien sold its subsidiary AAC Cyroma to Harper Bennett for £0.55 million, payable over 16 quarterly instalments.
- The sale supports Versarien’s focus on graphene technologies and its shift towards a manufacturing-light strategy.
- Proceeds will be used to meet corporate and working capital needs as the company strengthens its core graphene business.
Advanced materials engineering group Versarien (LSE:VRS) announced the sale of its wholly-owned subsidiary, AAC Cyroma, to Harper Bennett for £0.55 million. The sale is part of Versarien's strategic plan to focus on its core graphene technology while divesting its mature businesses. The transaction is structured to be paid in 16 equal quarterly instalments of £34,375, with payments starting three months after the deal's completion.
To safeguard the transaction, Versarien retains a charge over AAC Cyroma’s assets and those of Harper Bennett until the full payment is made. AAC Cyroma specializes in plastics manufacturing for industries such as automotive and fast-moving consumer goods. The subsidiary reported a loss of £0.15 million for the financial year ending 30 September 2023 and held net assets valued at £0.41 million.
Proceeds from the sale will be used to support Versarien's corporate and working capital needs, allowing the company to concentrate on developing graphene-based technologies. The sale marks a significant step in Versarien’s turnaround strategy, as the company aims to adopt a "manufacturing-light" approach and focus on its advanced materials and engineering capabilities.
Chief executive officer Stephen Hodge described the sale as pivotal for the company’s future direction, stating, “The sale of AAC Cyroma is a pivotal step in our turnaround strategy, allowing the company to continue to focus on maximising the potential from graphene and advanced engineering technologies, and take a manufacturing-light approach.” He added that the pipeline of opportunities and partnerships within Versarien’s core graphene business is improving, positioning the company for future growth and industry leadership.
As of 1454 BST, shares in Versarien were down 1.58%, trading at 0.06p.
