Haydale Graphene Industries Shares Drop On Financing Worries

LONDON (Alliance News) - Haydale Graphene Industries PLC shares plunged Friday as the company ...

Alliance News 9 November, 2018 | 10:07AM
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LONDON (Alliance News) - Haydale Graphene Industries PLC shares plunged Friday as the company seeks new financing partners and, as a result increased customer lead-in times, has started re-sizing the company's overhead base.

Shares in Haydale Graphene Industries were down 20% Friday at 18.77 pence each.

The company said it will need to look for alternative sources of funding to meet its financial obligations in the short term after lenders informed the advanced material producer they will only supply funding after production commences at its South Carolina project.

Haydale's planned USD1.5 million planned investment in its new silicon carbide cutting tools production line, in South Carolina, remains on track.

The company expects first revenue for the new facility in spring 2019 and will lead to positive earnings before interest, tax, depreciation and amortisation after that.

Haydale planned to refinance the capital equipment purchased for the facility's new cutting tools production line but following talks with possible lenders Haydale believes that funding "will not be available until production commences".

Haydale said the talks are ongoing.

The company also said, due to extended lead-times from customers, it has started a process of resizing its overhead base to reflect a short-term sales focus on graphene and smart inks, as well as its silicon carbide products.

Haydale said, so far, selling, general & administrative costs have reduced by about GBP1.0 million - with the full benefits expected to come through in early 2019.

By Paul McGowan; paulmcgowan@alliancenews.com

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Rating
Haydale Graphene Industries PLC 20.03 GBX -1.11 -
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