Graphene NanoChem PLC Update on pending 2015 Annual Results (6004F)
29 July 2016 - 4:01PM
UK Regulatory
TIDMGRPH
RNS Number : 6004F
Graphene NanoChem PLC
29 July 2016
The information communicated in this announcement is inside
information for the purposes of Article 7 of Market Abuse
Regulation 596/2014 ("MAR").
Graphene NanoChem PLC
("Graphene NanoChem" or the "Group")
Update on pending 2015 Annual Results and financial
restructuring update
Graphene NanoChem (AIM:GRPH), the international provider of
nanotechnology performance enhancing solutions for global
industries, today provides shareholders with an update on the delay
of publishing its annual audited accounts for the year ended 31
December 2015. The Company now anticipates publishing its annual
results in August 2016.
The delay in completing the annual audited accounts is primarily
due to the Group awaiting the finalisation of a significant
milestone in the Group's rationalisation plan, namely the
successful approval by its primary financier, Malaysian Debt
Ventures Berhad ("MDV"), for the restructuring of Graphene
NanoChem's short term debt of GBP14.5 million ("MDV Restructuring
Approval") that constitutes c.58% of the Group's total debt to
financial institutions.
The salient terms of the MDV restructuring approval include:
-- A two (2) year payment moratorium up to 31 December 2017;
-- An extended maturity date from November 2015 to December 2021; and
-- A pay down in the aggregate amount of GBP315,000 only in 2016 and 2017 respectively.
A primary consideration for the audit was the first payment to
MDV of GBP315,000 under the terms of the MDV Restructuring Approval
that was made on 6 June 2016 thereby impacting the audit completion
timeline.
The Group is working as quickly and as efficiently as possible
to progress its debt restructuring plan with its remaining secured
financiers, Bank Pembangunan Malaysia Berhad and Bank Rakyat
Berhad. The debt restructuring plan will settle the balance of
secured debt of c. GBP10.5 million through the planned realization
and disposal of its non-core assets that include the fuel additive
assets and the palm oil refinery. These non-core assets have a
forced sale value of c. GBP18.2 million based on independent
valuation of the assets undertaken by independent valuer's approved
by the lenders. Any such disposal would be subject to, inter alia,
compliance with applicable rules and regulations.
The successful restructuring of debt will significantly reduce
the Group's debt balance and interest rate expense, strengthening
the Group's balance sheet and enabling the utilisation of operating
cash flows in the near term for the advancement of the recalibrated
business plan rather than repayment of debt as the Group continues
its progress into long term, higher margin business
opportunities.
As stated in the announcement dated 29 June 2016, the Group had
expected to publish its annual audited accounts and the annual
report during July 2016. However, this is now expected to be
published in August 2016.
For further information:
Graphene NanoChem Tel: +603 2282
3080
Jespal Deol, Chief Executive
Officer
Panmure Gordon (NOMAD and Broker)
Fred Walsh / Adam James / Tom Tel: +44 (0)
Salvesen 20 7886 2500
Yellow Jersey PR Limited (Media) Tel: +44 (0)7768
537 739
Dominic Barretto / Harriet
Jackson
About Graphene NanoChem
Graphene Nanochem plc (AIM: GRPH) is an international provider
of nanotechnology performance enhancing solutions for global
industries. The Group employs nanoprocesses and nanomaterials to
design, engineer and enhance the performance of mainstream products
for a wide range of industrial applications. It has established two
major functional platforms in the energy and water sectors, and the
Group, through partnerships with established industry players, is
focused on building market opportunities in both sectors whilst
continuing its developmental work in other strategic application
areas of nanotechnology.
Headquartered in Malaysia, Graphene Nanochem was admitted to the
AIM of the London Stock Exchange on 26 March 2013, following the
reverse acquisition of Biofutures International plc, and trades
under the symbol GRPH.L. To find out more, please visit
www.graphenenanochem.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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