Versarien has raised raise £531,000 through a placing at a price of 1.25p per share.
Proceeds will be used for working capital and commercialisation activities, said the engineering and graphene specialist.
A turnaround strategy is being developed to preserve appropriate intellectual property and reduce operational costs to facilitate a cash runway to deliver commercially in its targeted markets, Versarien added.
Chris Leigh, chief financial officer, said: "As previously announced, the company requires further funding to support its activities and the Board welcomes the investor interest in this Placing.
“We continue to focus on completing our strategic reorganisation and commercial roadmap and look forward to sharing this with shareholders in due course."