REG - Haydale Graphene Ind - Haydale US Sales Process Update

Haydale Graphene IndustriesAnnouncement

17/04/2025 07:00

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RNS Number : 3571F  Haydale Graphene Industries PLC  17 April 2025

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET
ABUSE REGULATION (EU) 596 / 2014 WHICH FORMS PART OF UK LAW BY VIRTUE OF THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR").

 

Haydale Graphene Industries plc

('Haydale' or the 'Group')

Haydale US sales process update

 

Ammanford, 17 February 2025 - Haydale (AIM: HAYD), the advanced materials
group, announces that, further to the Group's announcement of 10 February 2025
regarding its wholly owned subsidiary, Haydale Ceramic Technologies LLC,
("HCT") being placed into a corporate insolvency process under Chapter 11
subchapter V of the United States ("US") Bankruptcy Code and the proposed
public auction of the business and assets of HCT, the auction process has now
concluded.

 

The decision to put HCT into this process was taken to eliminate further cash
flow drain on the parent entity arising from the ongoing financial support
required to support loss making operations, and to facilitate an orderly and
competitive asset sales process designed to maximise value for Haydale
shareholders. While early engagement from prospective buyers suggested a
strong level of initial interest, the auction process was ultimately
undermined by growing caution around inward investment to the US and
geopolitical tensions. In particular, escalating cross-border trade tensions
and the imposition of reciprocal tariffs between the US and China - where a
number of key suppliers in HCT's value chain are located - created significant
uncertainty.

 

Greenleaf Corporation ultimately made the highest offer during the process,
which has today been confirmed by the court, amounting to c$680,000, though at
this level the Board does not anticipate any cash being returned to the
Group's UK entities against its intercompany debtor balance.  As previously
announced, all intergroup balances and investment have now been provided for
in full.  Following conclusion of the Court process, Haydale anticipates that
an assets transaction will be finalised by the end of April and HCT then
liquidated.

 

Despite this outcome the Group's strategy has been successful in achieving its
primary objectives of stemming cash outflows to the US and significantly
reducing Group overhead costs and operational complexity, thereby contributing
to the Group's goal of achieving improved profitability and cash flow in FY25,
in order to protect Haydale's core business.

 

For further information:

Haydale Graphene Industries plc

Simon Turek, Chief Executive
Officer
Tel: +44 (0) 1269 842946

Gareth Kaminski-Cook, Non-Executive Chair

Patrick Carter, CFO

www.haydale.com (http://www.haydale.com)

Cavendish Capital Markets Limited (Nominated Adviser & Broker)

Julian Blunt / Edward Whiley / Trisyia Jamaludin, Corporate
Finance        Tel: +44 (0) 20 7220 0500

Andrew Burdis, ECM

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