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Versarien plc

Versarien plc To capitalise on a number of significant opportunities

Versarien plc (LON:VRS), the AIM quoted advanced engineering materials group, has today announced that it has today conditionally raised £1.1m by way of a fully subscribed placing of 10,552,100 new Ordinary Shares of 1 pence each, utilising the Company’s existing share authorities, at a price of 10 pence per share with existing institutional shareholders.

This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation.

Placing summary

The issue price of 10 pence per share represents a discount of 4.8 per cent. against the mid-market price of 10.5 pence per share at which the Ordinary Shares were quoted on AIM as at close of trading on 22 July 2016, the last trading day prior to announcement of the placing.

As both Henderson Global Investors and Miton Asset Management are existing holders of greater than 10 per cent. of the issued share capital of the Company, this transaction is considered a related party transaction in accordance with Rule 13 of the AIM Rules for Companies. Accordingly, the independent directors, having consulted with WH Ireland Limited, the Company’s nominated adviser, consider that the terms of the placing are fair and reasonable insofar as the Company’s shareholders are concerned.

Use of proceeds

The primary use of proceeds will be to finance one of the proposed acquisitions referred to in the trading update dated 6 April 2016, a complementary business which will benefit from Versarien’s graphene technology. This complimentary acquisition is in line with Versarien’s stated strategy to bring innovative new engineering solutions that are capable of have a game changing impact on a broad variety of industries. Heads of terms have been agreed and the balance of the consideration is anticipated to be met by the Company’s committed debt facilities. Remaining proceeds from the placing will be used for working capital purposes for the enlarged group.

Neill Ricketts, CEO of Versarien plc commented: “We are delighted by the strong level of support from existing investors in the placing. The proceeds of the fundraising should allow for the Company to capitalise on a number of significant opportunities such as the potential acquisition in addition to accelerating the progress of the business. We are committed to growing this business and improving the innovative products we produce and we would like to thank our investors for their continued support.”