Applied Graphene Materials PLC (AIM:AGM, OTCQX:APGMF) has agreed to sell its primary operating subsidiaries in a US$1.3mln cash deal with Canada's Universal Matter Inc and it is intended that the remaining shell of the company will be delisted from the London Stock Exchange.
The company, in a statement, said that the sale proceeds will be used to pay creditors, staff and cover operating expenses ahead of a subsequent winding up of the company on a solvent basis.
It added that it expects that the company will have minimal net cash and it is very unlikely to be in a position to return funds to shareholders.
Last month the company announced it was in talks with a number of “interested parties” following a strategic review in November – which sought strategic investment and also included an exercise to gauge demand for a potential equity raise to support the company’s ongoing activities.
Without the company securing new investment an exit was also sought.
Today, the company said that “it has become increasingly apparent to the Board during the strategic review that the business can no longer continue as an independent entity and it has been decided, therefore, that the best course of action is to pursue a sale of the trading operations in the interests of shareholders and other stakeholders.”
Canada-based Universal Matter is described as a developer and supplier of graphene-based solutions to several major industries. It has a proprietary technology and is said to “leverage strong R&D foundation to scale production processes and supply high-quality graphene to a diverse customer base with global presence.”