Haydale Graphene Industries PLC Financing Update (8465G)
09 November 2018 - 8:00AM
UK Regulatory
TIDMHAYD
RNS Number : 8465G
Haydale Graphene Industries PLC
09 November 2018
For immediate release 9 November 2018
Haydale Graphene Industries plc
("Haydale" or the "Group")
Financing Update
Haydale, (AIM: HAYD), the global advanced materials group,
announces the following update in respect of its current financial
position.
The Group's planned $1.5 million investment project in its new
Silicon Carbide ("SiC") cutting tools production line remains on
track, with newly acquired tooling and equipment being assembled in
the Group's US facility in South Carolina ("HCT") on budget and
within the timetable. The Group anticipates first revenues from
these products to commence in Spring 2019 and to lead to HCT being
EBITDA positive thereafter.
As previously stated, it has been the Group's intention to
refinance (including possible sale and leaseback) the capital
equipment purchased by the Group for HCT's new cutting tools
production line. Following discussions with possible lenders, which
are ongoing, the Group now believes that such funding will not be
available until production commences. As a consequence, the Group
will be seeking alternative sources of finance in the coming months
to satisfy its ongoing financial obligations in the short to medium
term to support the Group as its technology moves into commercial
adoption. A further update on financing will be made in due
course.
Furthermore, due to the Group continuing to experience extended
lead-times from its customers in their adoption of the Group's next
generation products in commercial quantities, the management has
commenced a process of re-sizing the Group's overhead base to
reflect the Group's near-term sales focus on its graphene and smart
inks as well as its SiC products. The Group has so far taken steps
that has led to a reduction in its annualized SG&A costs by
almost GBP1.0 million, the full benefits of which will come through
in early 2019.
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
- Ends -
For further information:
Haydale Graphene Industries plc
David Banks, Interim Executive Chairman Tel: +44 (0) 1269 842 946
www.haydale.com
Arden Partners plc (Nominated Adviser
& Broker)
Ruari McGirr / Paul Shackleton / Tel: +44 (0) 20 7614 5900
Ben Cryer
Notes to Editors
Haydale is a global technologies and materials group that
facilitates the integration of graphene and other nanomaterials
into the next generation of commercial technologies and industrial
materials. With expertise in graphene, silicon carbide and other
nanomaterials, Haydale is able to deliver improvements in
electrical, thermal and mechanical properties, as well as
toughness. Haydale has granted patents for its technologies in
Europe, USA, Australia, Japan and China and operates from six sites
in the UK, USA and the Far East.
For more information please visit: www.haydale.com
Twitter: @haydalegraphene
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END
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