News blog

Elektron Technology

• BY: Andrew Hore |
• POSTED: 07/06/2013 |

Elektron Technology is near to finalising the disposal of sintered tungsten carbide components supplier Total Carbide for £2.3m in cash and shares.

The disposal is still dependent on the buyer Versarien floating on Aim. The consideration includes £1.05m of shares in Versarien and Elektron has to hold £700,000 of these for at least six months. Elektron will own 10.3% of Versarien.

Advanced engineering materials developer Versarien was expected to float earlier in the year, pending the acquisition of Total Carbide, which will provide Versarien with manufacturing capacity. Total Carbide made a profit of £57,000 on revenues of £3.8m in the year to January 2013. Versarien is losing money and does not have any turnover.

Versarien was founded in 2010 in order to commercialise a process for the production of cutting edge porous metallic materials that had been developed by Liverpool University.
Verdsarien is raising £3m on admission to Aim, which will value it at £10.2m. Trading is expected to commence on 12 June.

At 13.75p a share, Elektron is valued at £16.4m. Elektron had net debt of £5m at the end of January 2013. Underlying profit fell from £4.7m to £1.3m.

b>Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFMay2013_44.pdf