Haydale Provides Financing Update

Haydale (AIM:HAYD) announced that the group is committed to its US$1.5 million planned investment project of a new Silicon Carbide cutting tools production line.

Further, the group that is engaged in advanced materials including graphene anticipates first revenues from these projects to commence in Spring 2019.

As quoted in the press release:

As previously stated, it has been the Group’s intention to refinance (including possible sale and leaseback) the capital equipment purchased by the Group for HCT’s new cutting tools production line. Following discussions with possible lenders, which are ongoing, the Group now believes that such funding will not be available until production commences. As a consequence, the Group will be seeking alternative sources of finance in the coming months to satisfy its ongoing financial obligations in the short to medium term to support the Group as its technology moves into commercial adoption. A further update on financing will be made in due course.

Furthermore, due to the Group continuing to experience extended lead-times from its customers in their adoption of the Group’s next generation products in commercial quantities, the management has commenced a process of re-sizing the Group’s overhead base to reflect the Group’s near-term sales focus on its graphene and smart inks as well as its SiC products. The Group has so far taken steps that has led to a reduction in its annualized SG&A costs by almost £1.0 million, the full benefits of which will come through in early 2019.

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