Applied Graphene stock sliced in half as it warns investors it may run out of cash
Materials firm Applied Graphene has halved in stock value after warning investors that it could run out of cash in the new year after a failed equity raise.
Investors were less than impressed as bosses failed to rally investors for a previously announced equity raise of up to $10m (£8.7m), citing “unfavourable conditions in small-cap equity markets”.
Shares plunged 49 per cent to 5.6p per share by early afternoon.
The London-listed materials firm, which supplies graphene to the battery and energy storage industry, warned shareholders this morning: “The company requires additional funding to extend its cash runway beyond 31 January 2023, which as previously disclosed is the date on which the board expects that the company’s current financial resources will be fully depleted.”
Applied Graphene hauled in investment bank Weild & Co’s Crestmont Group in July to lure in investors from the US and other countries outside of the UK.
CEO Adrian Potts said in the company’s interim results in April that Covid-19 and supply chain disruptions had hung heavily on commercial revenues.
“Many of our customers have been challenged to source the raw materials needed for their standard products and have temporarily refocused resources away from research and innovation, which has led to a slowing of customer evaluation, formulating and testing of our products,” he said in a statement.