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Applied Graphene Materials PLC on Wednesday said it received non-binding indicative proposals for its sale or the sale of its main operating subsidiary.
The Cleveland, England-based graphene materials maker said it is in discussions with the parties involved and expects final proposals in early January. After this, the board would then select a preferred bidder to progress with. Applied added that there can be no certainty any final proposals will be made, nor the terms of any proposals made.
In November, Applied Graphene shares plunged after the company warned it could run out of cash, but said an equity raise wasn’t possible at the time. The company attributed this to unfavourable conditions for small-cap equities.
Applied Graphene will need additional funding to extend its cash runway beyond this coming January 31, by which point its current financial resources will be depleted.
Last month, Applied Graphene said it has decided to initiate a strategic review, whereby the board would consider options available to maximise value for company’s shareholders.
Applied Graphene Materials shares rose 9.7% to 5.49 pence each in London on Wednesday morning.
By Tom Budszus, Alliance News reporter
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