09 November 2018
Haydale, (AIM: HAYD), the global advanced materials group, announces the following update in respect of its current financial position.
The Group's planned $1.5 million investment project in its new Silicon Carbide ("SiC") cutting tools production line remains on track, with newly acquired tooling and equipment being assembled in the Group's US facility in South Carolina ("HCT") on budget and within the timetable. The Group anticipates first revenues from these products to commence in Spring 2019 and to lead to HCT being EBITDA positive thereafter.
As previously stated, it has been the Group's intention to refinance (including possible sale and leaseback) the capital equipment purchased by the Group for HCT's new cutting tools production line. Following discussions with possible lenders, which are ongoing, the Group now believes that such funding will not be available until production commences. As a consequence, the Group will be seeking alternative sources of finance in the coming months to satisfy its ongoing financial obligations in the short to medium term to support the Group as its technology moves into commercial adoption. A further update on financing will be made in due course.
Furthermore, due to the Group continuing to experience extended lead-times from its customers in their adoption of the Group's next generation products in commercial quantities, the management has commenced a process of re-sizing the Group's overhead base to reflect the Group's near-term sales focus on its graphene and smart inks as well as its SiC products. The Group has so far taken steps that has led to a reduction in its annualized SG&A costs by almost £1.0 million, the full benefits of which will come through in early 2019.
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
For further information:
|Haydale Graphene Industries plc
David Banks, Interim Executive Chairman
|Tel: +44 (0) 1269 842 946
|Arden Partners plc (Nominated Adviser & Broker)
Ruari McGirr / Paul Shackleton / Ben Cryer
|Tel: +44 (0) 20 7614 5900|
Notes to Editors
Haydale is a global technologies and materials group that facilitates the integration of graphene and other nanomaterials into the next generation of commercial technologies and industrial materials. With expertise in graphene, silicon carbide and other nanomaterials, Haydale is able to deliver improvements in electrical, thermal and mechanical properties, as well as toughness. Haydale has granted patents for its technologies in Europe, USA, Australia, Japan and China and operates from six sites in the UK, USA and the Far East.
For more information, please visit: www.haydale.com