Versarien Plummets as Financial Concerns Grow

Versarien shares plunged 31.5% to 0.013 pence on Monday after the advanced engineering materials group warned that it may be forced into administration. The stock has fallen 81.8% over the past 12 months.

The company said it is extending its cash runway only until the end of August 2025 as it awaits the completion of a proposed strategic investment first announced in March.

While talks with the potential investor continue, Versarien is also marketing its subsidiary, Total Carbide Limited, for sale.

However, it warned, “there is no certainty that either transaction will be successfully concluded in a timeframe that will enable the Company to continue trading.”

As a contingency, the board has appointed restructuring specialist Leonard Curtis to run an accelerated sale of the group’s remaining assets, including its shares in Gnanomat SL and Total Carbide. Interested parties will be invited to submit offers by early September.

The company cautioned that “the maximum proceeds that may be realisable from the sale of the Group's remaining assets will be less than the liabilities of the Group.”

In such a scenario, Versarien would cease trading, enter administration, and see its AIM-listed shares suspended. “Versarien shareholders would not be expected to receive any return from an administration process,” the company states.

The update follows recent measures to conserve cash, including placing Versarien Graphene Limited into administration and beginning voluntary liquidation proceedings for Cambridge Graphene Limited and 2-DTech Limited.