This announcement contains inside information for the purposes of the retained
23 November 2022
Applied Graphene Materials plc
("Applied Graphene Materials", "the Group" or "the Company")
Strategic Review
The Company's board of directors has previously outlined its plans to raise further equity in order to fund the Company's operations and the continued development of the business. As announced on 08 November 2022, the Board recently investigated the feasibility of an equity raise with institutional and other investors and concluded that it would not be possible to complete an equity raise successfully at the current time.
As announced on 8 November, whilst the Board is pleased with the start that the Company has made to the current financial year, the Company requires additional funding in the near-term in order to continue in operation beyond 31 January 2023.
Given the Company's funding position and having regard to the unfavourable conditions in small-cap equity markets, the Board has decided to initiate a strategic review, pursuant to which the Board will consider the options available to maximise value for the Company's shareholders and other stakeholders. Such options could include, but not be limited to, raising additional funding from a specialist debt provider or strategic investor or by realising value from an accelerated sale of the Group's trade and assets or of the shares in the Group's main operating subsidiary. In parallel with the options described above, to seek to protect the financial position of the Company in the event the strategic review does not achieve a satisfactory conclusion, the Board has regrettably decided to commence statutory redundancy consultations with the Company's employees.
The Board has appointed Alvarez & Marsal Europe LLP as its financial adviser to manage the strategic review process. Any interested party should contact Alvarez & Marsal at the contact details set out below.
The Board will provide further updates to shareholders as appropriate.
For further information, please contact:
Applied Graphene Materials +44 (0) 1642 438 214
Adrian Potts, Chief Executive Officer
David Blain, Chief Financial Officer
Alvarez & Marsal Europe LLP +44 (0) 784 107 2042
Alex Baird abaird@alvarezandmarsal.com
Singer Capital Markets (Nominated Adviser and Joint Broker) +44 (0) 207 496 3000
Peter Steel / Amanda Gray
Allenby Capital Limited (Joint Broker) +44 (0) 203 328 5656
Nick Athanas / George Payne (Corporate Finance)
Matt Butlin / Kelly Gardiner (Sales and Corporate Broking)
Hudson Sandler (Financial PR) +44 (0) 207 796 4133
Nick
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