Shares in Haydale Graphene Industries got off to a positive start on their first day of trading but fell back below the placing price by the end of the day.
At one point the share price reached 229p but it fell back to 192.5p. South Wales-based Haydale raised £6.6m, £5.52m net of expenses, at 210p a share. Haydale had originally said that it was seeking £10m. That valued Haydale at £23.6m. The pro forma net cash is £6.85m and pro forma NAV is £7.77m.
Graphene has a single carbon lattice layer which gives it good thermal, mechanical and electrical properties. A low pressure plasma process produces layered graphenes without the need to use acids. The process can reduce impurities in the material. The National Physical Laboratory has witnessed the process and written positively on it.
The patent applied for process needs to be repeatable and scalable and then the products need to be commercially exploited. There are even plans for bolt-on acquisitions.
The customers are raw materials suppliers and applications companies. The main focuses are battery technology, sensors, inks, films and polymer composites. Companies in other sectors, including automotive, aerospace, paints, communications, lubricants and solar cells, are potential licensees of the technology. Initial revenues are likely to come from grant funded projects and sales of small amounts of material for R&D purposes.
Unsurprisingly there is little in the way of revenues and losses are significant. In the six months to December 2013, a loss of £568,000 was made on revenues of £58,000.
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