Shares of Applied Graphene Materials PLC (LON: AGM) plummeted 35.8% after the company announced that it had raised £6.0 million overnight from institutional and private investors via a share placement at 41p per share.
The company said that the funds raised would be used to implement the next stage of its growth plan. The board noted that the has adequate cash reserves to fund its operations up to October.
The oversubscribed placing showed that investor interest in Applied Graphene’s products is relatively high, given the company’s deluge of positive news during the past few weeks. The company is set to benefit from the increased volume threshold of 1-10 tonnes of graphene powder usage in products annually.
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Applied Graphene also signed a major distribution agreement with ManHo Polymers, a specialist distributor based in South Korea, extending its reach within Asia. The firm also clarified that trading in the current financial year has been within expectations after the past fiscal year ended in July.
Adrian Potts, the Chief Executive Officer, said:
“We are grateful for the support of our existing shareholders and would like to welcome new investors to the Company. We believe that we are well-positioned to deliver on our broad pipeline of opportunities for the use of graphene nanoplatelet material in a variety of applications. The proceeds of the oversubscribed Fundraise will provide us with the financial resources necessary to capitalise on the exciting opportunities in our markets and accelerate the growth of the business.”
Applied Graphene share price
Applied Graphene shares crashed 35.82% to trade at 43p having fallen from Monday’s closing price of 67p.