Graft Polymer (UK) - Half-year Report
13/09/2024 07:00
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RNS Number : 0336E Graft Polymer (UK) PLC 13 September 2024
This announcement contains inside information for the purposes of Article 7 of
EU Regulation No. 596/2014, which forms part of United Kingdom domestic law by
virtue of the European Union (Withdrawal) Act 2018 (as amended).
13 September 2024
Graft Polymer (UK) PLC
Unaudited interim results for the six months to 30 June 2024
Graft Polymer (UK) Plc (the "Company" or "Graft Polymer"), an innovative
biotechnology company focused on co-developing therapeutics for mental health
disorders, announces its unaudited interim results for the six months to 30
June 2024.
Highlights
· Board changes undertaken, including appointment of Anthony Tennyson
as Chief Executive Officer.
· Completion of an operational review, leading to a strategic focus on
the healthcare industry, specifically developing intellectual property ("IP")
relating to the treatment of mental health and substance use disorders, and
the co-development of therapeutics for mental health disorders.
· Disposal of non-core, underperforming industrial polymer division to
streamline operations and focus on higher-growth sectors.
· Successful £1.8 million fundraising, post period end, through the
publication of a prospectus (the "Prospectus") and placement of new shares.
· Entered a commercial collaboration agreement with Awakn Life Sciences
Corp. to co-develop a new class of therapeutics targeting trauma related
mental health disorders such as Post-Traumatic Stress Disorder ("PTSD").
· Strengthening of the intellectual property portfolio with four new
patent applications related to mental health and substance use disorders.
Anthony Tennyson, CEO, said: "I am confident that the strategic steps taken
since my appointment positions Graft Polymer as an innovative biotechnology
company focused on developing IP relating to the treatment of mental health
and substance use disorders, and the co-development of therapeutics for mental
health disorders. We are committed to delivering value to our shareholders as
we continue this journey and I look forward to providing further updates on
our progress."
Chairman's Statement
The interim financial results cover the six-month period from the 1 January
2024 to 30 June 2024. A more detailed narrative on the Company's recent
activities was provided in the Prospectus, published on 3 July 2024.
I joined Graft Polymer as Chairman in March 2024, during a period of financial
distress for the Company. Upon my appointment, an injection of capital was
urgently needed, which led to the initiation of a comprehensive operational
review to chart a sustainable path forward.
In May 2024, Anthony Tennyson joined as CEO, bringing a mandate to reduce
overheads, streamline operations, and build out our IP portfolio to capitalise
on the growing potential of our Graft Bio division.
The operational review is now complete, and we are repositioned as a
biotechnology company with a specific focus on mental health and substance use
disorders. Through various announcements, we have communicated our strategy
clearly, and I am grateful for the strong support from our shareholders since
the July 2024 capital raise. Our commitment to developing breakthrough
therapeutics for under-addressed markets, including mental health and
substance use disorders, offers a credible and significant growth opportunity.
CEO's report
Since my appointment as CEO in May 2024, Graft Polymer has achieved important
milestones that underscore our evolution into a biotechnology company focused
on mental health and substance use disorders. Our initial target is
trauma-related mental health conditions, including PTSD, which impacts
approximately 13 million adults in the U.S. and 20 million in the US, UK, and
key EU markets.
On 3 May 2024, we announced the disposal of Graft Polymer Slovenia D.O.O., a
non-core, underperforming industrial plastics subsidiary. This divestment was
essential in refocusing the Company on our core strengths in biotechnology.
Following this, we took several crucial steps to strengthen the Company's
financial and strategic position:
· 3 July 2024: The Company successfully raised £1.8 million,
providing the resources needed to fuel future growth.
· 18 July 2024: The Company entered into a commercial collaboration
with Awakn Life Sciences Corp. to co-develop new therapeutics targeting
trauma-related mental health disorders, including PTSD.
· 30 July 2024: The Company appointed Professor David Nutt as
Senior Scientific Advisor, adding world-class expertise to our development
programme.
· 28 August 2024: The Company and Awakn Life Sciences Corp.
selected the co-lead series for our collaboration and engaged Charnwood
Discovery as the synthesis partner to advance the programme.
With these steps, we are confident in our trajectory as a key player in the
development of innovative treatments for mental health and substance use
disorders. We look forward to keeping our shareholders updated as we continue
to execute our strategy.
Enquiries:
Graft Polymer (UK) Plc
Anthony Tennyson, CEO and Executive Director
Email: anthonytennyson@graftpolymer.co.uk
Allenby Capital (Broker)
Nick Naylor / Liz Kirchner (Corporate Finance) | Guy McDougall (Sales)
+44 (0) 20 3328 5656
GRAFT POLYMER (UK) PLC - CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE 6 MONTH PERIOD ENDING 30 JUNE 2024
Unaudited Unaudited
Six months to Six months to 30 Jun 2023
£'000
Note 30 Jun 2024
£'000
Continuing operations
Revenue 5 - 240
Cost of sales - (129)
Gross profit - 111
Operational costs 6 (18) (80)
Administrative expenses 6 (526) (1,060)
Gain on deconsolidation 14 139 -
Operating loss (405) (1,029)
Depreciation - (94)
Finance costs (64) (3)
Loss before taxation (469) (1,126)
Income tax - -
Loss for the period from continuing operations (469) (1,126)
Loss from discontinuing operations 14 (157) -
Total loss for the period attributable to equity holders of the parent (626) (1,126)
Other comprehensive income
Foreign currency translation 76 38
Derecognition of foreign exchange reserve 14 (123) -
Other comprehensive income (net of tax) for the year (673) 38
Total comprehensive loss for the period attributable to equity holders of the (673) (1,088)
parent
Loss per share (p) 7 (0.38) (1.08)
The notes from an integral part of the Condensed Consolidated Interim
Financial Statements.
CONSOLIDATED STATEMENT OF FINANNCIAL POSITION
FOR THE 6 MONTH PERIOD ENDING 30 JUNE 2024
Note Unaudited Unaudited 30 Jun 2023 Audited
30 Jun 2024 £'000 31 Dec 2023
£'000
£'000
Non-current assets
Property, plant and equipment 8 - 805 -
Intangible assets 9 2,068 2,068 2,068
Other non-current assets - 13 13
Right of use assets - 47 39
Total non-current assets 2,068 2,933 2,120
Current assets
Cash and cash equivalents 27 522 155
Trade and other receivables 44 136 108
Inventory - 114 51
Total current assets 71 772 314
TOTAL ASSETS 2,139 3,705 2,434
Non-current liabilities
Lease liability - 29 22
Total non-current liabilities - 29 22
Current liabilities
Trade and other payables 220 197 249
Deferred Income - - 93
Lease liability - 13 12
Loan note 11 264 - -
Provisions - - 32
Total current liabilities 484 210 386
Total liabilities 484 239 408
NET ASSETS 1,655 3,466 2,026
Equity
Issued share capital 12 62 41 41
Share premium 12 7,093 7,001 7,001
Share capital to issue 358 - 175
Share based payments reserve 1,233 858 1,227
Capital reduction reserve 2,500 2,500 2,500
Foreign exchange reserve - 37 47
Share based payments reserve
Accumulated losses (9,591) (6,971) (8,965)
TOTAL EQUITY 1,655 3,466 2,026
The notes from an integral part of the Condensed Consolidated Interim
Financial Statements.
The Condensed Consolidated Interim Financial Statements were approved and
authorised by the Board of Directors on 13 September 2024.
Nicholas Nelson - Chairman
CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE 6 MONTH PERIOD ENDING 30 JUNE 2024
Unaudited
Unaudited Six months to
Six months to 30 Jun 2023
£'000
30 Jun 2024
£'000
Cash flow from operating activities
Loss before tax (626) (1,126)
Adjustments for:
Depreciation - property, plant & equipment 57 90
Depreciation - right of use asset - 4
Finance charge 64 3
Share based payments 7 -
Gain on deconsolidation (139) -
Impairment of fixed asset (57) -
Foreign exchange movements 75 39
Changes in working capital:
Decrease in trade and other receivables 34 175
Increase / (decrease) in in trade and other payables 123 (151)
Increase in inventories 39 73
Net cash outflow from operating activities (423) (893)
Cash flow from investing activities
Purchase of property, plant and equipment - (237)
Repayments on right of use assets (4) -
Disposed subsidiary cash balance (13) -
Net cash outflow from investing activities (17) (237)
Cash flows from financing activities
Net proceeds from issue of shares 112 -
Proceeds from issue of convertible note 200
Net cash inflow from financing activities 312 -
Net (decrease) in cash and cash equivalents (128) (1,130)
Cash and cash equivalents at beginning of period 155 1,640
Foreign exchange impact on cash - 12
Cash and cash equivalents at the end of the period 27 522
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
AS AT 30 JUNE 2024
Share capital Shares to be issued Share premium Capital Reduction reserve SBP reserve Foreign exchange Reserve Retained earnings Total equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 31 December 2022 41 - 7,001 2,500 858 (1) (5,845) 4,554
Loss for period - - - - - - (1,126) (1,126)
Other comprehensive income - - - - - 38 - 38
Total comprehensive loss for year - - - - - 38 (1,126) (1,088)
Transactions with owners in own capacity
Transactions with owners in own capacity - - - - - - - -
Balance at 30 June 2023 41 - 7,001 2,500 858 37 (6,971) 3,466
Loss for period - - - - - - (1,994) (1,994)
Other comprehensive income - - - - - 10 - 10
Total comprehensive loss for year - - - - - 10 (1,994) (1,984)
Transactions with owners in own capacity
Waiver of Director and advisor fees - 175 - - - - - 175
Employee options - - - - 369 - - 369
Transactions with owners in own capacity - 175 - - 369 - - 544
Balance at 31 December 2023 41 175 7,001 2,500 1,227 47 (8,965) 2,026
Loss for period - - - - - - (626) (626)
Other comprehensive income - - - - - 76 - 76
Total comprehensive loss for year - - - - - 76 (626) (551)
Transactions with owners in own capacity
Shares issued during the year 21 183 92 - - - - 296
Disposal of subsidiary - - - - - (123) - (123)
Employee options - - - - 6 - - 6
Transactions with owners in own capacity 21 183 92 - 6 (123) - 179
Balance at 30 June 2024 62 358 7,093 2,500 1,233 - (9,591) 1,655
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD ENDING 30 JUNE 2024
1. GENERAL INFORMATION
Graft Polymer (UK) Plc ("the Company" or "Graft") was incorporated in England
and Wales as a limited company on 18 May 2017 as Graft Polymer (UK) Limited
and was re-registered as a public limited company on 1 July 2021. The Company
is domiciled in England and Wales with its registered office at Eccleston
Yards, 25 Eccleston Place, London, SW1W 9NF. The Company's registered number
is 10776788.
At the beginning of the period the principal activities of the Company and all
of its subsidiaries (collectively referred to as "the Group") were the
research and development of polymer modification technologies and polymer
modification techniques. However towards the end of the period the board of
directors undertook a review of its business and operations, pursuant to which
it was decided that Graft Polymer Slovenia ("Graft Polymer D.O.O")
(principally, an industrial polymer products manufacturer) was considered no
longer commercially viable due to forecasted negative cashflow as a result of
falling sales and rising costs, with no immediate prospect of becoming
profitable in the short to medium term and as a result the decision was made
to dispose of Graft Polymer D.O.O on 2 May 2024.
Post the divestment the Company will focus its attention and resources on its
Graft Bio division, which represents strong prospectivity through its
intellectual property (IP), licensing agreements, and sales contracts.
The condensed consolidated interim financial statements ("interim financial
statements") were approved for issue by the Board of Directors on 13 September
2024.
2. ACCOUNTING POLICIES
IAS 8 requires that management shall use its judgement in developing and
applying accounting policies that result in information which is relevant to
the economic decision-making needs of users, that are reliable, free from
bias, prudent, complete and represent faithfully the financial position,
financial performance and cash flows of the entity.
3. BASIS OF PREPARATION
The interim financial statements of Graft Polymer (UK) Plc for the six-month
period ended 30 June 2024 have been prepared in accordance with Accounting
Standard IAS 34 Interim Financial Reporting.
The interim report does not include all the notes of the type normally
included in an annual financial report. Accordingly, this report is to be read
in conjunction with the annual report for the year ended 31 December 2023,
which was prepared in accordance with UK adopted International Accounting
Standards (IFRS) and the Companies Act 2006, and any public announcements made
by Graft Polymer (UK) plc during the interim reporting period and since.
These interim financial statements do not constitute statutory accounts as
defined in Section 434 of the Companies Act 2006. The Group's statutory
financial statements for the year ended 31 December 2023 prepared under IFRS
have been filed with the Registrar of Companies. The auditor's report on those
financial statements was unqualified and did not contain a statement under
Section 498(2) of the Companies Act 2006.
The functional currency for each entity in the Group is determined as the
currency of the primary economic environment in which it operates. The
functional currency of the Company's subsidiary (which was disposed of on 2
May 2024) was the Euro. The presentational currency of the Group is Pounds
Sterling as this is the functional currency of the parent entity and also the
currency in which equity fundraising has been facilitated. Amounts have been
rounded to the nearest £'000.
The interim financial statements have not been audited.
The business is not considered to be seasonal in nature.
3.1 GOING CONCERN
These interim financial statements have been prepared on the going concern
basis, which contemplates the continuity of normal business activities and the
realisation of assets and settlement of liabilities in the normal course of
business.
As disclosed in the interim financial statements, the consolidated entity
incurred a net loss before taxation for the period ended 30 June 2024 from
continuing operations of approximately £469,000 (30 June 2023: approximately
£1,126,000) and had net cash outflows of approximately £128,000 (30 June
2023: approximately £1,130,000) for the period ended 30 June 2024. As at
period end, the consolidated entity had net current liabilities of
approximately £413,000 (30 June 2023: net current assets of approximately
£562,000) and had cash and cash equivalents equal to approximately £27,000
(30 June 2023: approximately £522,000).
In the Group's last annual report the Group's auditors noted that there was a
material uncertainty relating to going concern due to an uncertainty over a
potential fundraise. Since period end, the Group has successfully raised
£1.8m (before expenses) via a placing of new ordinary shares which has
boosted the liquidity of the Group.
As a result, the Directors have assessed that the Group now has sufficient
working capital to execute its operations over the next 12 months.
Accordingly, the Directors believe that the Group will be able to continue as
a going concern and that it is appropriate to adopt the going concern basis in
the preparation of the interim financial statements.
3.2 PRINCIPAL RISK AND UNCERTAINTIES
The principal risks and uncertainties of the Group have changed materially
since the publication of the Group's last annual report. A new risk assessment
was performed alongside the prospectus that was published on 3 July 2024 and
the key risks are highlighted below:
- The Group is currently loss making, recording a financial loss of
approximately £469,000 (30 June 2023: approx. £1,126,000) for the period and
the Group has no clear source of revenue.
- The existing license of the Group's drug delivery systems may
ultimately fail to deliver revenues through royalty and distribution payments
in accordance with management's expectations or at all; and
- A core asset of the Group is the intellectual property rights in its
drug delivery system. A failure to protect those intellectual property rights
and its portfolio of intellectual property rights, more generally, may have an
adverse impact on the financial condition of the Group
These risks are deemed by the Directors to be within the normal risk appetite
of the Group and are comfortable that the risks are properly mitigated where
required.
3.3 CRITICAL ACCOUNTING ESTIMATES
The preparation of these interim financial statements requires management to
make estimates and assumptions that affect the reported amounts of assets and
liabilities, income and expenses, and disclosure of contingent assets and
liabilities at the end of the reporting period.
In preparing these interim financial statements, the significant judgements
made by management in applying the Group's accounting policies and the key
sources of estimation uncertainty were similar to those that applied to the
financial statements for the period ended 31 December 2023 (unless
specifically detailed below) with the nature and amounts of such estimates
have not changed significantly during the interim period. New critical
accounting estimates considered by management for the interim period were:
Disposal of Graft Polymer D.O.O
On 2 May 2024, the board of directors undertook a review of its business and
operations, pursuant to which it was decided to dispose of Graft Polymer D.O.O
on 2 May 2024. On contemplation of various factors relating to Graft Polymer
D.O.O the board decided there was not significant value in the subsidiary and
hence decided to dispose of it for nominal consideration.
4. SEGEMENT REPORTING
The Chief Operating Decision Maker is the Board of Directors. The Board
reviews the Group's internal reporting in order to assess performance of the
Group. Management has determined the operating segments based on the reports
reviewed by the Board.
The Board considers that during the six month period ended 30 June 2024, the
Group operated in two segments being the corporate function in the United
Kingdom and polymer development and production in Slovenia.
However, due to the disposal of the Slovenian operations on 2 May 2024, the
contributions from the Slovenian operating segment are not reported in the
loss from continuing operations in the statement of comprehensive income. For
details of the contribution of the Slovenian operations during the period up
until the point of disposal, refer to Note 14.
5. REVENUE
Period to Period to 30 Jun 2023 £'000
30 Jun 2024
£'000
Sales revenue - 240
- 240
For details of the revenue from the Slovenian operations during the period up
until the point of disposal refer to Note 14.
6. OPERATING LOSS
Operating loss from continued operations is stated after (charging):
Period to Period to
30 Jun 2024 30 Jun 2023
£'000 £'000
Operational costs (18) (80)
Director and employee costs (241) (620)
Professional and consulting fees (248) (163)
Travel expenses - (2)
Corporate and administrative costs (30) (150)
Other expenses (7) (31)
Foreign exchange - (94)
Gain on deconsolidation 139 -
(405) (1,140)
7. EARNINGS PER SHARE
The calculation of the basic and diluted earnings per share is calculated by
dividing the profit or loss for the period by the weighted average number of
ordinary shares in issue during the period.
Unaudited Period to 30 Jun 2024 Unaudited Period to 30 Jun 2023
Loss for the period from continuing operations - £ '000s (469) (1,126)
Weighted number of ordinary shares in issue 124,309,754 104,097,229
Loss per share from continuing operations - p (0.38) (1.08)
Share options and warrants could potentially dilute basic earnings per share
in the future. These were not included in the calculation and no diluted
earnings per share presented as the Group is loss making and additional equity
instruments are anti-dilutive for the periods presented.
8. PROPERTY, PLANT AND EQUIPMENT
Leasehold Improvements Plant Total
£'000 & Equipment £'000
£'000
Cost
At 1 July 2023 90 1,135 1,225
Additions 14 6 20
Disposals - (27) (27)
Impairment (107) (1,117) (1,224)
Exchange impact 3 3 6
At 31 December 2023 (audited) - - -
Impairment 107 1,117 1,224
Disposal on derecognition of subsidiary (107) (1,117) (1,224)
At 30 June 2024 (unaudited) - - -
Depreciation
At 1 July 2023 (48) (372) (420)
Charge for the year - (73) (73)
Disposals - 6 6
Impairment 40 463 503
Exchange impact 8 (24) (16)
At 31 December 2023 (audited) - - -
Impairment (40) (463) (503)
Disposal on derecognition of subsidiary 40 463 503
At 30 June 2024 (unaudited) - - -
Net book value at 31 December 2023 (audited) - - -
Net book value at 30 June 2023 (unaudited) 42 763 805
Net book value at 30 June 2024 (unaudited) - - -
9. INTANGIBLE ASSETS
Unaudited 30 Jun 2024 Unaudited 30 Jun 2023 Audited
£'000
£'000 31 Dec 2023
£'000
Opening balance 2,068 2,068 2,068
2,068 2,068 2,068
Intangible assets relate to the issue of 22,500,000 shares to founding
director Victor Bolduev on the acquisition of his "Know-how" and patents that
have been transferred to the Group.
At each period end, the Directors assess the intangible assets for any
indicators of impairment and have concluded no presence of such indicators.
Consequently no impairment charge has been processed during the period (31 Dec
2023: £nil).
10. INVESTMENTS
Company subsidiary undertakings
The Group owned interests in the following subsidiary undertakings, which are
included in the financial statements:
Name Business Activity Country of Incorporation Registered Address Percentage Holding
Graft Polymer IP Limited Intellectual property England and Wales Eccleston Yards, 25 Eccleston Place, London, SW1W 9NF 100%
GRAFTBIO Limited Bio-Polymer development and production England and Wales Eccleston Yards, 25 Eccleston Place, London, SW1W 9NF 100%
11. LOAN NOTE
Unaudited 30 Jun 2024 Unaudited 30 Jun 2023 Audited 31 Dec 2023
£'000 £'000 £'000
Opening balance - - -
Principal drawn down 200 - -
Interest charged 64 - -
Principal repaid - - -
264 - -
On 15 March 2024, the Company entered into a £100,000 working capital loan
facility, which was subsequently increased by a further £100,000 in April
2024. The facility has been drawn down in full and attracts an interest rate
of 10% per month. The loan is repayable on demand, together with accumulated
interest.
12. SHARE CAPITAL
Unaudited Unaudited Audited
30 Jun 2024 30 Jun 2023 31 Dec 2023
Number of shares 124,763,966 104,097,299 104,097,299
Nominal value (£'000) 62 41 41
Issued and fully paid ordinary shares with a nominal value of £0.001 (2023:
£0.001)
Change in issued Share Capital and Share Premium:
Number of shares Share capital Share premium Total
Ordinary shares £'000 £'000 £'000
Opening balance at 31 December 2023 104,097,299 41 7,001 7,042
Issue of shares at placing price of 0.6 pence 20,666,667 21 103 124
Share issue costs - - (11) (11)
Closing balance at 30 June 2024 124,763,966 62 7,093 7,155
13. SHARE BASED PAYMENT RESERVE
Warrants
As at 30 June 2024
Weighted average exercise price Number of warrants
Brought forward at 1 January 2024 22p 2,031,008
Granted in period 1p 10,333,333
0.6p 1,500,000
Expired during period 22p (775,194)
Outstanding at 30 June 2024 2.9p 13,089,147
Exercisable at 30 June 2024 2.9p 13,089,147
The weighted average time to expiry of the warrants as at 30 June 2024 is 515
days.
The following table lists the Black Scholes inputs to the model used for
valuation of the warrants:
1p warrants 0.6p warrants
Dividend yield (%) 0% 0%
Expected volatility (%) 92.4% 92.4%
Risk-free interest rate (%) 3.6% 3.6%
Time to maturity 2 years 2 years
Exercise price (£) 0.01 0.006
Share price at grant date (£) 0.006 0.006
14. BUSINESS COMBINATIONS
Discontinued operations
A discontinued operation is a component of the Group that has been disposed of
or classified as held for sale and that represents a separate major line of
business or geographical area of operation, is part of a single co-ordinated
plan to dispose of such a line of business or area of operations, or is a
subsidiary acquired exclusively with a view to resale. The results of
discontinued operations are presented separately on the face of the Statement
of Comprehensive Income.
The Board recently undertook a review of its business and operations, pursuant
to which it was decided that the Slovenian operation, Graft Polymer D.O.O
(principally, an industrial polymer products manufacturer), was considered no
longer commercially viable due to forecasted negative cashflow as a result of
falling sales and rising costs, with no immediate prospect of becoming
profitable in the short to medium term. The Group disposed of Graft Polymer
D.O.O on 2 May 2024.
A gain on deconsolidation as at date of disposal of £139k was recognised and
taken to the Statement of Comprehensive Income.
Gain on deconsolidation of Graft Polymer D.O.O
2 May 2024
£'000
Consideration received
Cash -
Carrying amount of net liabilities sold 16
16
Reclassification of foreign exchange reserve 123
Gain on deconsolidation 139
Financial Performance for Graft Polymer D.O.O
Unaudited Unaudited
Four months to 2 May 2024 Six months to 30 Jun 2023
£'000
£'000
Revenue 221 240
Cost of sales (162) (128)
Gross profit 59 112
Operational costs (17) (80)
Depreciation (57) (92)
Administrative expenses (141) (288)
Operating loss (156) (348)
Finance costs (1) (3)
Loss before taxation (157) (351)
Income tax - -
Loss for the period from discontinuing operations (157) (351)
Assets and liabilities of Graft Polymer D.O.O
Unaudited Audited
2 May 2024 31 Dec 2023
£'000
£'000
Non-current assets
Right of use assets 38 39
Other non-current assets 13 13
Total non-current assets 51 52
Current assets
Cash and cash equivalents 13 143
Trade and other receivables 44 78
Inventory 11 50
Total current assets 68 271
TOTAL ASSETS 119 323
Non-current liabilities
Lease liability - 22
Total non-current liabilities - 22
Current liabilities
Trade and other payables 71 132
Deferred Income 36 93
Lease liability 28 12
Total current liabilities 135 237
Total liabilities 135 259
NET ASSETS (16) 64
15. RELATED PARTY TRANSACTIONS
Payments to Directors
In the period Directors accrued fees as per below which were outstanding at
period end:
Fees accrued in the period Outstanding Fees as at 30.06.24
(£) (£)
Victor Bolduev 84,870 135,175
Pavel Kobzev 22,270 52,160
Roby Zomer 30,050 66,666
Yifat Steuer 50,050 90,270
Alex Brooks 7,430 16,865
Anthony Tennyson 8,335 8,335
Nicholas Nelson 10,500 10,500
The outstanding fees were settled through a mix of cash and share
consideration post period end.
16. EVENTS SUBSEQUENT TO PERIOD END
Placement of New shares and issue of warrants
On 10 July 2024, the Company raised £1.8 million (before expenses) through a
placing of 2,171,166,667 new ordinary shares. A breakdown of the placement is
detailed below:
Type of shares No. of shares
Placing shares 1,800,000,000
Conversion shares(1) 264,000,000
Management shares(2) 59,666,667
Fee shares(3) 47,500,000
Total 2,171,166,667
(1) Shares issued as full repayment of working capital loan and accrued
interest
(2) Shares issued in satisfaction of fees owed to Directors as at 31 March in
connection to the July 24 transaction
(3) Shares issued to various directors and advisors in lieu of fees owed
In addition to the above, on 10 July 2024, 294,500,000 warrants were also
issued.
Resignation of Pavel Kobzev
On 15 July 2024, Mr. Pavel Kobzev resigned from the board of directors with
immediate effect. This followed the Company's recent divestiture of its
industrial plastics business unit, Graft Polymer D.O.O., announced on 3 May
2024.
Resignation of Victor Bolduev
On 1 August 2024, Mr. Victor Bolduev resigned from the board of directors and
from his role as the Company's Chief Technology Officer with immediate effect.
This followed the Company's recent divestiture of its industrial plastics
business unit, Graft Polymer D.O.O., announced on 3 May 2024.
Resignation of Yifat Steuer
On 12 August 2024, Ms. Yifat Steuer resigned from the board of directors and
from her role as the Company's Chief Financial Officer with immediate effect.
Issue of options to Professor David Nutt
In consideration for becoming the Company's Senior Scientific Adviser,
Professor Nutt was granted 10,000,000 nominal cost options (with an exercise
price of £0.001 and expiry life of 3 years) over the Company's ordinary
shares under the Company's Long Term Incentive Plan. The options vest in 3
equal tranches with one tranche vesting immediately and the remaining two
tranches on the 1 and 2 year anniversary of grant date respectively.
Impairment of Intangible Assets
Subsequent to period end the board of directors reviewed the current financial
position of the Company and, following the resignation of Victor Bolduev on 1
August 2024 the directors will assess the recoverability of intangible assets
linked to his intellectual property and "Know-how." As there were no
indicators of the potential resignation of Mr Bolduev at period end the
Directors are comfortable that the assets were not impaired at this stage.
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. END IR FLFVRASIFLIS
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