Graphene NanoChem PLC Update on pending 2015 Annual Results (6004F)

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: [phone] 
                                                 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: [phone] 
                                              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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July 29, 2016 02:01 ET (06:01 GMT)