THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF THE MARKET ABUSE REGULATION (EU) 596 / 2014 WHICH FORMS PART OF
UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018
("MAR").
Haydale Graphene Industries
plc
('Haydale' or the 'Group')
Disposal of Korean
Subsidiary
and
Related Party
Transaction
Haydale (AIM: HAYD), the global
advanced materials group, confirms that it
has entered into a transaction to dispose of its Republic of Korea
("Korea") based subsidiary, Haydale
Technologies (Korea) Co., Ltd ("HTK") to its local director, Minon
Kim (the "Disposal"). HTK is currently a distributor of Haydale
products serving the South-east Asia region.
As part of the fundraising announced
in October, the Company stated that it would undertake a rigorous
review of all aspects of the business with a view to reprioritising
those areas offering up near term (as well as long term)
profitability, positive cash generation, and other strategic
options which align with Haydale's core strengths and accelerate
certain commercial activities. One element of this work undertaken
immediately by the Board was to review the performance of the
overseas entities and potentially dispose of or close them. HTK had
been persistently loss-making and a review of its current
opportunities and order book has led the Board to conclude that a
sale to its local director is appropriate, the associated costs of
which are significantly lower than the estimated costs of closure.
The sale to Minon Kim also maintains a distribution channel partner
in Korea for Haydale products if any of HTK's leads mature going
forward.
The Disposal was completed for a
nominal consideration of £1, plus the write off of remaining
inter-company debt owed to Haydale, of c.£0.34m. In the FY to 30
June 2024 HTK made a loss before tax of c.£0.12m and had proforma
net liabilities at completion of c.£0.27m. As part of the
Disposal Haydale has granted HTK exclusive distribution rights for
the supply of its established products in Korea for a period of one
year (ending 1 January 2026).
Related Party Transaction
The sale of HTK and the granting of
the exclusive distribution rights to Mingon Kim constitute related
party transactions pursuant to Rule 13 of the AIM Rules by virtue
of Mingon Kim's status as a director of HTK. The directors of
Haydale, having consulted with the Company's nominated adviser,
Cavendish, consider that the terms of the sale and granting of
distributor rights are fair and reasonable insofar as the Company's
Shareholders are concerned.
For
further information:
Haydale Graphene Industries plc
Gareth Kaminski-Cook, Executive
Chair
Tel: +44 (0) 1269 842946
Patrick Carter, CFO
www.haydale.com
Cavendish Capital Markets Limited (Nominated Adviser &
Broker)
Julian Blunt / Edward Whiley /
Trisyia Jamaludin, Corporate
Finance Tel: +44 (0) 20
7220 0500
Andrew Burdis, ECM