Versarien PLC (AIM:VRS, OTC:VRSRF) shares dropped 31% on Monday amid mounting concerns over its financial position and restructuring efforts.
The advanced engineering materials group confirmed it has begun placing key subsidiaries, including Versarien Graphene Limited, into administration or voluntary liquidation to conserve cash.
These measures extend the company’s forecast cash runway only until the end of August, pending the outcome of a proposed strategic investment first announced in March.
The group remains in discussions with the prospective investor, but acknowledged there is no certainty that the deal or the sale of Total Carbide Limited will be completed in time to sustain operations.
In response, Versarien’s board has appointed restructuring firm Leonard Curtis to accelerate the sale of the company’s remaining assets, including its stake in Gnanomat SL and Total Carbide Limited, with offers expected by early September.
The company warned that if asset sales are required, the proceeds are unlikely to cover its liabilities, which would lead to a cessation of trading and administration.
In such a scenario, shares would be suspended on AIM and shareholders should not expect any return.
In early trading, the stock, down 85% in the last year, crashed 0.006p to 0.013p, valuing the business at just over £740,000.