Versarien, a Gloucestershire-based engineering firm that produced advanced graphene materials for the clothing, aerospace, and biomedical industries, has officially been delisted from the Alternative Investment Market (AIM). The Longhope company collapsed into administration last month after experiencing prolonged financial difficulties that ultimately exhausted its cash reserves.
Financial Struggles Lead to Administration
The business had been facing significant financial trouble for several months before it formally entered administration in January. In December, Versarien filed a notice of intention to appoint administrators, and last month it appointed advisors from Leonard Curtis to oversee its affairs during this process. The group encountered severe financial strain throughout the previous year, compelling it to place several of its businesses and assets up for sale in an attempt to stabilise its operations.
Official Delisting Announcement
On Monday, February 9th, Versarien issued a formal statement to the stock market confirming the cancellation of its securities from trading on AIM. The announcement cited AIM Rule 1 as the basis for this action, with the delisting taking effect immediately from the time and date of the notice. This move marks a significant downturn for a company that was once seen as an innovative player in the materials engineering sector.
From Innovation to Insolvency
Versarien was originally founded in late 2010 with the aim of commercialising a novel process for creating metallic foams, technology that was initially developed at the University of Liverpool. The company launched on AIM in June 2013 and subsequently embarked on an expansion strategy, acquiring various businesses and growing its workforce in Gloucestershire. By 2015, it had secured a government Innovate UK grant to further develop its proprietary technology, highlighting its early potential and promise.
Recent Challenges and Setbacks
However, in recent years, the business has grappled with persistent cash flow issues. Last year, it was forced to place several of its subsidiary businesses into administration. In July, Versarien confirmed the closure of its Korean operations, and in August, the Chancellor of the Duchy of Lancaster intervened to block the proposed sale of Versarien assets to a Chinese joint-venture. This decision was made on national security grounds, specifically to protect the know-how and intellectual property related to graphene production and its dual-use applications.
Three months later, a separate deal to sell Versarien's remaining assets and subsidiaries to an unnamed public company also fell through. This agreement, valued at approximately £200,000, would have included the sale of Total Carbide Limited and Gnanomat SL, along with Versarien's patent and trademark portfolio, and the graphene production equipment held by Versarien Graphene Limited. The failure of this sale further exacerbated the company's financial predicament, leading to its eventual administration and subsequent delisting from AIM.
