- Haydale Graphene Industries has agreed to acquire ACMC Holding, a silicon carbide whisker manufacturer based in South Carolina, for up to $7.0 million in cash and shares.

To support the proposed acquisition, Haydale is carrying out a placing and subscription of new ordinary shares at 160p apiece to raise gross proceeds of up to approximately £2.1 million.

The company is also providing all qualifying shareholders with the opportunity to subscribe for an aggregate of up to 312,500 new ordinary shares at 160p per share, to raise approximately £0.5 million (before expenses), on the basis of 1 new share for every 49.324 existing ordinary shares held.

Haydale reports results are consistent with its internal projections and market expectations for the year to the end of June.

Group income rose 30% year on year to £1.92 million (2015: £1.48 million) and the group posts an adjusted EBITDA loss of £3.36 million (2015: £2.38 million).

Other highlights:

- Investment in R&D increased to £0.94m (2015 £0.56m);

- Continued investment in our reactor and processing capacity totalled £0.47 million (2015: £1.18 million);

- Cash balance at year end of £2.86 million (2015: £2.05 million); and

- Successful placing and open offer in November 2015 to raise £6.0 million (before costs)

Chief executive Ray Gibbs said: "The year has been a transitional one moving the business from an R&D focused operation into a sales and marketing organisation delivering sales of graphene enhanced products. As is normal with a new technology, gaining market acceptance can be a long and difficult task and there are many challenges to meet.

"However, having invested heavily during the year, we now have the tools to overcome these barriers to entry. We have added to our technical sales teams, substantially increased our production capability, secured a proven, robust supply chain and invested in overseas sales operations to open and serve markets in the Far East and North America.

"We are set for growth starting with the launch this month of the exciting new product, our branded graphene enhanced 3D PLA printing filament.

"The current financial year is entirely focused on accelerating conversion of our extensive research and product development into a sales pipeline with commercial revenues of graphene enhanced products. Our routes to market are established in key markets with best in class partners.

"We have income visibility from our long term grant awards, the ongoing traditional composite consulting services at HCS, advanced leads for the sale of additional reactors into strategic locations and following completion of the acquisition of ACM, we expect to have material high quality recurring revenues from complementary sales of advanced silicon carbide whiskers and fibres. We look forward to the future with confidence."

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