The Gloucestershire-based company has been running out of cash for months
A Gloucestershire engineering firm that has been in financial trouble for months has collapsed into administration. Longhope-based Versarien has appointed business advisory firm Leonard Curtis to oversee its affairs after filing an intention of notice to appoint administrators in December.
The company, which suspended trading on AIM last month, produced graphene for use in the aerospace, clothing and biomedical sectors. The group fell into financial difficulty last year and was forced to put a number of its businesses and assets up for sale.
In November, a deal to sell Versarien’s remaining assets and subsidiaries to an unnamed public company fell through. The agreement was for some £200,000 and involved the sale of Total Carbide Limited and Gnanomat SL, the patent and trademark portfolio held by Versarien, as well as the graphene production equipment held by Versarien Graphene Limited.
On Tuesday (January 6), the company confirmed it had appointed Andrew Knowles and Andrew Poxon of Leonard Curtis as joint administrators of Versarien Plc.
“Following their appointment, the joint administrators will continue to look to conclude a transaction for the sale of Versarien’s remaining assets, comprising primarily its patents and trademarks, together with its shareholdings in Total Carbide Limited and Gnanomat SL which continue to trade as solvent businesses,” Versarien said in a statement.
It is not expected that the administration process will result in any returns to Versarien shareholders.
As a result of the appointment of administrators, SP Angel Corporate Finance has resigned as nominated adviser and broker to the company with immediate effect.
Versarien’s ordinary shares remain suspended from trading and if a replacement nominated adviser is not appointed within a month, the admission of the company’s ordinary shares to trading on AIM will be cancelled.
Last year, the group warned over several months it was running out of cash and placed a number of its businesses in administration. In July, Versarien confirmed it had closed down its Korean business.
Then, in August, the Chancellor of the Duchy of Lancaster blocked the proposed sale of Versarien assets to a Chinese joint-venture on security grounds.
