TIDMAGM
RNS Number : 5953M
Applied Graphene Materials PLC
13 January 2023
This announcement contains inside information for the purposes
of the retained UK version of the EU Market Abuse Regulation (EU)
596/2014 ("UK MAR").
13 January 2023
Applied Graphene Materials plc
("Applied Graphene Materials" , the "Company" or the
"Group")
Update on strategic review and other matters
The Board provides the following update in relation to the
ongoing strategic review and other matters.
Strategic Review
The Company, in conjunction with Alvarez & Marsal Europe LLP
as financial adviser, is continuing its discussions with various
parties that have submitted non-binding indicative proposals for
either the sale of the Group's trade and assets or of the shares in
the Company's main operating subsidiary.
The Board had initially sought non-binding indicative proposals
from interested parties with a view to completing a transaction by
31 January 2023. Completing a transaction on a solvent basis will,
in all likelihood, require shareholder approval in a general
meeting, as well as other regulatory approvals. Discussions with
interested parties are ongoing and the Board is seeking to select a
preferred party with whom to enter into legally binding contractual
terms by 31 January 2023. The completion of any transaction will
only take effect once those shareholder and regulatory approvals
have been obtained and this will not take place before 31 January
2023.
The Board has also previously notified that 31 January 2023
would be the date on which the Group's working capital position is
expected to become fully depleted. The Board has reviewed the
Group's projected cash flows further and taken mitigating action
where appropriate to reduce costs and maintain liquidity beyond 31
January 2023.
The Board now believes that, without any further funding
(including, for example, any interim funding that, in all
likelihood, will be required to progress a transaction with a
preferred party to completion), the Company's available working
capital will become fully depleted by 28 February 2023.
As previously disclosed, the Board continues to take action to
seek to protect the financial position of the Company, its
shareholders and creditors in the event that the strategic review
does not achieve a satisfactory result. In parallel with the
strategic review, the process of statutory redundancy consultations
with the Group's employees announced on 23 November 2022 is
ongoing.
Current discussions with interested parties may be altered or
terminated at any time and, accordingly, there can be no certainty
that any final proposals will be made, nor as to the terms on which
any such final proposals may be made.
Annual Report and Accounts for the year ended 31 July 2022
The Board continues to work with its auditors, RSM UK Audit LLP,
with a view to publishing the Company's annual report and accounts
for the year ended 31 July 2022 ("FY22") by 31 January 2023, being
the deadline for publication stipulated under the AIM Rules for
Companies.
If the FY22 annual report and accounts are not published by the
deadline, the Company's ordinary shares of two pence each
("Ordinary Shares") will be suspended from trading on AIM with
effect from 1 February 2023 pending publication of the Company's
FY22 annual report and accounts.
OTCQX Best Market US listing
The Ordinary Shares have, since 29 July 2021, also traded on t
he OTCQX Best Market in the United States. In order to reduce costs
and continue to provide a facility for US-based shareholders to
freely trade the Ordinary Shares, the Company has elected for its
Ordinary Shares to be traded on the OTCQB Venture Market under the
ticker symbol APGMF with effect from 17 January 2023.
The Board will continue to provide further updates 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 / Oliver Platts
Allenby Capital Limited (Joint Broker) +44 (0) 203 328 5656
Nick Athanas / Dan Dearden-Williams (Corporate Finance)
Hudson Sandler +44 (0) 207 796 4133
Nick Lyon / Emily Dillon
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END
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