The founder of a boating navigation app has been named the UK’s most successful scale-up entrepreneur this year due to “huge user growth.”
The innovator in the application of graphene told the London Stock Exchange that an equity raise was not possible amid efforts to find funding as it faces the prospect of running out of money by the end of January. It blamed what it called “unfavorable conditions in small-cap equity markets.”
In a statement, Applied Graphene announced that it was carrying out a strategic review, having appointed Alvarez & Marsal Europe LLP to determine whether a debt provider or strategic investor could provide funding. It also said the possibility of a sale was on the table.
In an update to the market, the firm said: “As a precautionary measure, the board has decided to begin statutory redundancy consultations with the company’s employees in parallel with the options described above to protect the financial position of the company if the strategic review cannot yield a satisfactory conclusion.”
In April, Applied Graphene reported increased operating losses of £1.9m, although overall revenue increased from £42,000 to £46,000. Its crucial market had slowed down as customers turned away from research and development, while supply chain issues had also caused “severe impacts.”
Despite the challenges, at the time, it said more potential customers were becoming interested in both graphenes as a novel material and its practical use. To accommodate the anticipated increase in demand, the company leased more space at its Wilton manufacturing facility and acquired new equipment.