THIS ANNOUNCEMENT AND THE INFORMATION HEREIN (THE
"ANNOUNCEMENT") IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE,
TRANSMISSION, DISTRIBUTION OR FORWARDING DIRECTLY OR INDIRECTLY, IN
WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA,
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DISTRIBUTION OR FORWARDING WOULD BE
UNLAWFUL. THIS ANNOUNCEMENT SHOULD BE
READ IN ITS ENTIRETY. IN PARTICULAR, PERSONS RECEIVING THIS
ANNOUNCEMENT SHOULD READ AND UNDERSTAND THE INFORMATION PROVIDED IN
THE "IMPORTANT NOTICES" SECTION OF THIS
ANNOUNCEMENT.
FURTHER, THIS ANNOUNCEMENT IS MADE FOR INFORMATION PURPOSES
ONLY AND DOES NOT CONSTITUTE AN OFFER TO SELL OR ISSUE OR
SOLICITATION TO BUY, SUBSCRIBE FOR OR OTHERWISE ACQUIRE SHARES IN
GRAFT POLYMER (UK) PLC IN ANY JURISDICTION IN WHICH ANY SUCH OFFER
OR SOLICITATION WOULD BE UNLAWFUL.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF EU REGULATION 596/2014 AS IT FORMS PART OF DOMESTIC
LAW IN THE UNITED KINGDOM BY VIRTUE OF THE EUROPEAN UNION
(WITHDRAWAL) ACT 2018. UPON THE PUBLICATION OF THIS ANNOUNCEMENT
VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION WILL
BE CONSIDERED TO BE IN THE PUBLIC
DOMAIN.
15 March
2024
Graft Polymer (UK)
Plc
(the
"Company")
New Chairman appointment,
resignation of two directors, loan facility agreement, financial
update and appointment of joint
broker
Board changes
Graft Polymer Plc (LSE:GPL)
announces the resignations of two directors of the Company these
being Roby Zomer, the Non-Executive Chairman of the Company, and
Alex Brooks a
Non-Executive Director. Nicholas Nelson has today been
appointed as a director of the Company replacing Mr Zomer as
Non-Executive Chairman of the Company with immediate effect. Mr
Zomer will remain as a consultant to the
Company.
Nicholas Nelson commenced his career
in the City in 1985 in stockbroking before moving into the
financial PR industry in 1999. He has previously served as a
director on the boards of seven small cap quoted companies, both in
executive and non-executive positions.
New
loan facility
The changes to the board follow the
provision of a £100,000 working capital loan facility to the
Company by Mr Nelson and another private individual (the "Loan
Facility"). The
Loan Facility is intended to be drawn down in full against expenses
incurred by the Company as they arise, and it attracts an interest
rate of 10% per month. Although the loan is technically repayable
on demand, together with accumulated interest, it is mutually
agreed in writing to convert all or any part of the outstanding
balance of the Loan (including interest) in the form of new
ordinary shares issued by the Company at a price and time agreed
between the lenders and the Company.
Financial update
Over recent months the Company has
experienced very difficult trading conditions due to the conflicts
in the Middle East, Ukraine and the Red Sea. As a
consequence, the Company's cash position has become extremely
constrained thus necessitating the need for the Company to enter
into the Loan Facility. The Loan Facility will allow the
Company to continue to trade and will permit the Company's audit
for the year ended 31 December 2023 to be completed.
Appointment of joint broker
The Company announces the
appointment of Allenby Capital as joint broker to the
Company.
Roby Zomer, outgoing Chairman,
commented:
"The shocking conflicts taking place in the Middle East,
Ukraine and the Red Sea have had a major impact on the Company and
conspired to undermine our business development
plans. With the severe constraints on our ability to
trade, our financial position has become parlous, forcing the
Company to undertake an urgent review of its future
direction.
"We thank Nicholas and the other lender for providing us with
interim working capital. Nicholas's priority as the incoming
Chairman is to establish sources of additional funding whilst
working with the board to consider the best future for Graft
Polymer."
Enquiries:
Graft Polymer (UK)
Plc
Nicholas Nelson, Non-Executive
Chairman
nelson@nexfin.org.uk
Yifat Steuer, CFO and Executive
Director
Allenby Capital
(Joint broker)
Nick Naylor / Liz Kirchner
(Corporate Finance)
Guy McDougall
(Sales)
+44 (0) 20 3328
5656