Haydale Graphene Industries PLC (LON:HAYD) said it remains on track with the development of a production line for its Silicon Carbide (SiC) cutting tools as it continued funding discussions.
The nanomaterials development firm said newly acquired tooling and equipment for the SiC tools production were being assembled at its US facility in South Georgia on budget and within the timetable.
The group said it anticipated revenues from the products in Spring 2019 and would lead to the facility becoming underlying earnings (EBITDA) positive thereafter.
Haydale added that it was seeking to refinance, including a possible sale and leaseback, of the capital equipment purchased for the new production line.
Following ongoing discussions with possible lenders, the group said it believed funding would not be available until production commences and therefore it would be seeking alternative sources of finance in the coming months to satisfy its ongoing financial obligations in the short to medium term as the technology moved into commercial adoption.
The firm added that due to extended lead-times from customers in their adoption of its products in commercial quantities, it had begun a process of re-sizing the Group's overhead base to reflect the near-term sales focus on its graphene, smart inks, and SiC products.
Haydale said that so far it had taken steps that had reduced its annualised selling, general and administrative expenses by almost £1mln, the full benefits of which would come through in early 2019.