TIDMVRS
RNS Number : 1244W
Versarien PLC
15 April 2019
15 April 2019
Versarien plc
("Versarien" or the "Company")
Term Sheet with Beijing Institute of Graphene Technology
Versarien plc (AIM: VRS), the advanced materials engineering
group, is pleased to announce that it has signed a term sheet
("Term Sheet") with Beijing Institute of Graphene Technology Co.
Ltd ("BIGT") covering the proposed cooperation between the parties
to develop Versarien's graphene related business in China.
BIGT was founded in 2017 by Aero Engine Corporation of China
("AECC"), Beijing Institute of Aeronautical Materials ("BIAM"), and
the Beijing Government, based on nearly a decade of graphene
research by BIAM. BIAM and the National Graphene Institute at the
University of Manchester have been working together on a wide
ranging five-year collaborative research project since 2015.
The Term Sheet, which is subject to contract and formal BIGT
board approvals, was signed on Sunday 14 April 2019 at a public
ceremony in Shenzhen, China, attended by representatives of BIGT,
the Company and from the Chinese and UK Governments.
Subject to the completion of due diligence and the entering into
of formal documentation to the satisfaction of both parties, the
Term Sheet envisages BIGT assisting Versarien with the
establishment of a subsidiary in China, wholly owned by the
Company. Any such Versarien Chinese subsidiary would be focussed on
the manufacture of Versarien's graphene and other 2D materials in
China and their sale to Chinese customers, working in collaboration
with BIGT. This would not preclude Versarien entering into other
ventures in China and it remains the Company's preference that any
Chinese manufacturing base is situated in Jinan.
The Term Sheet envisages that BIGT will provide funding to
Versarien for the proposed subsidiary and other corporate purposes
in the form of an equity investment in the Company, providing BIGT
with a holding of up to 15% of the issued share capital of the
Company, although there can be no certainty that a formal agreement
will be entered into, nor the specific terms that any such
agreement may take. It is the Company's current intention that in
any fund raising of this nature existing and prospective private
and institutional investors will be given the opportunity to
participate on the same terms.
Versarien and BIGT are currently undertaking additional due
diligence and detailed negotiations. Further announcements will be
made as appropriate.
Neill Ricketts, CEO of Versarien, commented: "We are very
pleased to have reached the term sheet stage in our discussions
with Beijing Institute of Graphene Technology. This developing
relationship potentially offers a huge opportunity for the Company
and we look forward to progressing matters.
"During the last six months we have announced a number of MOUs
with global manufacturers based in China, together with securing
relationships with Chinese provincial government bodies. The plans
with BIGT are complementary to these.
"We look forward to continuing detailed discussions with BIGT
and making further announcements in due course as we look to
rapidly scale the Versarien graphene business. We remain well
funded and any capital would only be accepted to appropriately
accelerate our growth plans."
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO
CONSTITUTE INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE
MARKET ABUSE REGULATION (EU) NO. 596/2014. UPON THE PUBLICATION OF
THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE
IN THE PUBLIC DOMAIN.
Enquiries:
Versarien
Neill Ricketts, CEO
Chris Leigh, CFO +44 (0)1242 269 122
Canaccord Genuity (Nominated
Adviser and Broker)
Bobbie Hilliam
Emma Gabriel +44 (0)20 7523 8000
IFC Advisory (Financial PR
and IR)
Tim Metcalfe
Graham Herring
Heather Armstrong +44(0)20 3934 6630
About Versarien
Versarien plc (AIM:VRS), is an advanced engineering materials
group. Leveraging proprietary technology, the Group creates
innovative engineering solutions for its clients in a diverse range
of industries. Versarien has six subsidiaries operating under two
divisions:
Graphene and Plastics
2-DTech Ltd, which specialises in the supply, characterisation
and early stage development of graphene products.
www.2-dtech.com
AAC Cyroma Limited, which specialises in the supply of
vacuum-formed and injection-moulded products to the automotive,
construction, utilities and retail industry sectors. Using
Versarien's existing graphene manufacturing capabilities, AAC will
have the ability to produce graphene-enhanced plastic products.
www.aaccyroma.co.uk
Cambridge Graphene Limited, supplies novel inks based on
graphene and related materials, using patented processes to develop
graphene materials technology.
www.cambridgegraphene.com
Gnanomat S.L. ("GNA"), based in the Parque Cientifico Madrid,
Spain, is a company capable of utilising Versarien's graphene
products in an environmentally friendly, scalable production
process for energy storage devices that offer high power density,
almost instant recharging and very long lifetimes for use in
electrical vehicles and portable electronics
products.www.gnanomat.com
Hard Wear and Metallic Products
Versarien Technologies Limited has developed an additive process
for creating advanced micro-porous metals targeting the thermal
management industry and supplies extruded aluminium.
www.versarien-technologies.co.uk
Total Carbide Limited, a leading manufacturer in sintered
tungsten carbide for applications in arduous environments such as
the oil and gas industry. www.totalcarbide.com
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END
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