TIDMVRS
RNS Number : 5199I
Versarien PLC
05 December 2022
5 December 2022
Versarien plc
("Versarien" or the "Company")
G-SCALE Update and Innovate UK Loan Deed of Variation
On 1 July 2020, Versarien plc (AIM: VRS), the advanced materials
engineering group, announced that the UK Government, via Innovate
UK ("IUK"), had agreed a GBP5 million loan to the Company (the
"Loan"), for a project named G-SCALE, an acronym for Graphene,
Seat, Concrete, Arch, Leisure, Elastomer. The award, which followed
a rigorous process of assessment, was to facilitate the production
of sufficient quantities of graphene to enable commercialisation of
graphene-enhanced products in these five priority application
areas.
IUK has continued to monitor the progress of the G-SCALE project
during the drawdown and development stage, which has been completed
despite the macro-economic challenges the Company has faced. In
recognition of the potential benefits of Versarien's graphene
technology, IUK offered to vary the terms of the Loan by deferring
commencement of the capital repayments by one year, to be paid in
ten equal quarterly repayments, commencing in August 2025. A deed
of variation to the Loan has been signed by the Company accepting
the offer. Interest will continue to be charged at a rate of 7.4%
per annum, of which, 50% of the payments will be deferred until
February 2025. The deferred interest will be paid in equal
instalments when the capital repayments commence.
Versarien is pleased to provide a summary of G-SCALE progress
under each of the headings:
-- "Graphene" - The Company has now commissioned the first of
four "Graphene-Tech" reactors acquired as part of the project which
in total could provide up to an additional 100 tonnes of powder
capacity for use in multiple sectors including energy storage. The
Graphink processing machines also purchased as part of the project
are fully operational and can provide up to 12,000 kg of Cementene
(Versarien's graphene enhanced concrete admixture) or 120,000 kg of
Graphene-Wear formulation per annum.
-- "Seat" - Versarien has installed large scale dispersion
systems to produce graphene- enhanced thermoset resins for
incorporation into fibre-reinforced polymer composites. In
parallel, the Company has completed its Technology Developer
Accelerator Programme with Lotus Cars funded by the Advanced
Propulsion Centre ("APC"). In addition, the Company has completed
its Graphene-Loaded Polymer Composite project with the Defence,
Science and Technology Laboratory ("DSTL") and continues talks with
potential customers for graphene enhanced bio-resins as well as
sustainable fibre reinforced thermoset polymers.
-- "Concrete" - Almost 1,000 tonnes of concrete have been pou
red containing Cementene. The Company is in discussions with major
UK and European construction companies to assess product viability
following the successful completion of testing by a United Kingdom
Accredited Service ("UKAS") laboratory. Consequently, Versarien
plans to continue investment in Graphink processing equipment to
support its focus on the construction sector and the potential
environmental benefits that can be obtained. The Company has also
commissioned its 3d concrete printer and successfully completed
several projects. Versarien intends to co-fund research fellowships
as part of the Digital Roads of the Future project led by National
Highways, housed at the University of Cambridge and the Company is
a founding member of the Roads Research Alliance.
-- "Arch" - This application concentrates on commodity,
speciality and engineering thermoplastics including adding graphene
to recycled and bio-based feedstocks. Using graphene enhanced
polymers manufactured by Versarien, Inspecs Group has produced
prototype eyewear and is in the process of demonstrating these
products to potential customers. The Company's academic
collaborations with WMG at the University of Warwick continue and
the first co-funded PhD student has now joined Versarien's
Cambridge R&D team bringing additional expertise in
graphene/thermoplastic processing.
-- "Leisure" - Versarien continues to progress its relationships
with clothing brands Superdry, Umbro, BiaBrazil and Go T o Gym.
Some customer photoshoots have been completed for the Graphene-Wear
product launches anticipated in Spring/Summer 2023, and designs
have been completed for Autumn/Winter 2023 and Spring/Summer 2024.
The Company is also in dialogue with other global sportswear brands
with the aim to launch a number of new products.
-- "Elastomers" - Following the product launch with Flux
Footwear LLC, the Company continues to take enquiries from global
brands for Graphene-Wear rubber compounds and masterbatches. As
part of this project, Versarien has completed a number of rounds of
testing with Enso Tyres.
Neill Ricketts, Chief Executive Officer of Versarien, said: "The
continuing support of various government agencies including
Innovate UK, is an endorsement of the importance of graphene
technology to the UK. Our core objective remains to leverage this
exciting technology, especially in the construction and textile
sectors, which we believe offer the fastest route to
commercialisation."
Scott O'Brien, Director, Innovation Finance, Innovate UK &
Director, Innovate UK Loans Limited, said: "We have continued to
work with Versarien and to monitor this loan and the G-SCALE
project it supports. Importantly, our loan was also predicated on
the scale and breadth of commercial opportunities that could flow
from G-SCALE.
"We recognise the progress being made but we are also aware of
the challenges we so often see for highly innovative businesses
bringing ground-breaking technologies to market. In recognition of
this and our continuing support for Versarien, we have offered
additional flexibility around our loan: the planned start of
capital repayments will be deferred for 12-months, extending the
overall term of the loan. We hope this will assist in getting this
ground-breaking material to market."
For further information please contact:
Versarien Plc
Neill Ricketts - Chief Executive Officer +44 (0) 1594 887204
Chris Leigh - Chief Financial Officer
Stephen Hodge - Chief Technology Officer
SP Angel Corporate Finance (Nominated Adviser and Joint Broker)
Matthew Johnson, Adam Cowl +44 (0) 20 3470 0470
Berenberg (Joint Broker)
Mark Whitmore, Ciaran Walsh +44 (0) 20 3207 7800
IFC Advisory Limited (Financial PR and Investor Relations)
Tim Metcalfe, Zach Cohen +44 (0) 20 3934 6630
About Versarien Plc
The strategy of Versarien Plc (AIM:VRS) is to be a globally
recognised graphene company with a wide portfolio of high-quality
verified materials allied to the largest relevant IP portfolio
supported by its own UK based research and development centre
driving recurring revenue growth through its innovative graphene
product applications.
For further information please see: https://www.versarien.com
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