Directa Plus, a producer and supplier of graphene-based products for use in consumer and industrial markets, has announced its intention to raise a minimum of £3.0 million. The net proceeds of the Placing will allow the Group, inter alia, to increase investment to drive growth in the Company’s rapidly expanding markets.
The Company also announces that it intends to raise up to approximately a further £1.0 million by way of an open offer to Shareholders, to be launched shortly after the close of the Placing.
- exploit commercial opportunities across a developing pipeline;
- build sales and marketing reach;
- develop the next generation of higher performing products;
- improve industrial layout to drive industrial margin; and
- maintain competitive advantage and barriers to entry.
Directa Plus states that it has signed a number of agreements with customers and now needs additional working capital to fund capital expenditure to exploit the existing commercial opportunities, and fulfill existing customer orders under contracted agreements. At the same time, the Company wishes to invest further funds in its marketing and sales functions to maintain revenue growth and to promote the G+ brand which helps Directa Plus to add value to its customers’ products and to grow overall margins.
Another key area of investment is the R&D in order to develop the next generation of higher performing products to enable new applications with the aim of sustaining the long term growth of the Company. A final phase of investment is also required in the production plant in Como, Italy, to optimize the production process to reduce unit costs and increase the manufacturing margin. In addition, the Company wishes to protect the competitive advantage investing in protection of existing intellectual property and development of new patents.
In addition, any further monies received under the Open Offer will be used to further support the Company’s strategy as well as for general working capital purposes.