Versarien PLC on Wednesday said it has raised £454,822 via a placing of 165.4 million new shares at 0.275 pence per share.

Versarien shares plummeted 35% to 0.34 pence each on Wednesday morning in London.

The Cheltenham, England-based engineering materials company said it will use the proceeds of the placing for corporate and working capital purposes, as well as to provide bridge finance to extend its cash ahead of the payment it expects to receive from the sale of assets.

The shares will be admitted to trading on or around November 13, it said.

Chief Executive Stephen Hodge said: ‘As we have previously announced, the company requires further funding to continue its turnaround strategy, and we welcome the investor interest in this placing. We continue to focus on this strategy, pursuing an encouraging pipeline of commercial and [research and development] projects, as well as technology licencing opportunities.’

The company noted that its turnaround strategy is intended to strengthen its scientific teams, divest non-core activities and licence its technology and brands.

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