LONDON - Haydale Graphene Industries PLC (AIM: HAYD), a global advanced materials group, has completed the sale of its South Korean subsidiary, Haydale Technologies (Korea) Co., Ltd. (HTK), to local director Minon Kim, the company disclosed today. The move is part of Haydale's strategic refocusing on areas with potential for near-term profitability and positive cash flow.
HTK, which has been distributing Haydale's products in South-east Asia, has been consistently unprofitable, prompting the decision to sell. The subsidiary reported a loss before tax of approximately $0.12 million for the fiscal year ending June 30, 2024, and had proforma net liabilities of about $0.27 million upon completion of the sale.
The transaction was completed for a nominal sum of £1, in addition to the write-off of the remaining inter-company debt, which stood at roughly £0.34 million. As part of the agreement, Haydale has granted HTK exclusive distribution rights in Korea for its products for one year, ending January 1, 2026.
This disposal aligns with Haydale's previously announced intention, in October, to conduct a thorough review of its business and to consider the divestment or closure of overseas operations that do not align with its core strengths or strategic objectives.
The sale of HTK and the granting of exclusive distribution rights are considered related party transactions under Rule 13 of the AIM Rules due to Minon Kim's position as a director of HTK. The directors of Haydale, after consultation with the company's nominated adviser, Cavendish, have deemed the terms of the transaction to be fair and reasonable in relation to the company's shareholders.
Haydale's executive chair, Gareth Kaminski-Cook, and CFO, Patrick Carter, are available for further inquiries, while Cavendish Capital Markets Limited acts as the nominated adviser and broker for the company.
The information regarding the sale is based on a press release statement and has been disseminated by RNS, the news service of the London Stock Exchange (LON:LSEG).
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