Tag: VRS

Versarien Plc (LON: VRS), the advanced materials engineering group, announced this morning that it is today holding its Annual General Meeting at 11am at the offices of Gloucester Rugby, at Kingsholm Stadium, Kingsholm Road, Kingsholm, Gloucester, GL1 3AX.

At today’s AGM the Company’s Executive Chairman and CEO, Neill Ricketts, will make the following statement:

I am pleased to report that the Company has continued to make significant progress since the release of our annual results on 17 July 2019, in particular with a number of our collaborations and our activities in China.

As reported on the 26 July 2019, the Company had signed a Letter of Intent with its Asian based textile partner. I can confirm that advanced discussions have now been held with the intent to sign a formal commercial partnership in the near future. In addition, a year-long trial of a new graphene delivery method into textiles at Leeds University has now been successfully completed, with results which show significant improvements in tensile strength and thermal conductivity through the addition of our graphene. This development will allow us to expedite further commercial trials in both consumer and industrial textile applications with our current partners in these sectors.

We are also trialling a new grade of concrete at the Graphene Engineering Innovation Centre and at a civil engineering institute featuring a graphene based material. These trials form part of our collaboration agreement with AECOM, along with a further four projects in China and the Middle East.

Our other collaborations that we outlined in the annual report continue to progress in line with the Company’s expectations.

In China, the Versarien plc and Beijing Institute of Graphene Technology Co. Ltd (“BIGT”) teams have been working together to progress the terms of the planned partnership announced on 15 April 2019. In particular:

· BIGT has assisted Versarien in successfully setting up a wholly foreign owned enterprise (WFOE) with a registered office in Beijing;

· BIGT has secured the endorsement and support of provincial Chinese governments for the project, including the China International Industry Graphene Union (“CIGIU”, which was established as part of ‘Made in China 2025 ‘ and ‘the 13th Five-year Plan’ and partners with BIGT with the objective of establishing ‘China Graphene Manufacturing’ at a national level);

· Incubation and factory facilities within preferred key strategic provinces are currently being discussed for final consideration; and

· BIGT continues to work towards the purchase of up to 15% of Versarien’s share capital through the issue of new shares to BIGT, but BIGT acknowledges Versarien’s desire to also offer shares to institutions and private investors at the same time as any investment by BIGT.

The strategy agreed between BIGT and Versarien is to create an incubation hub in Beijing in partnership with the Chinese Government’s Administrative Committee of Beijing Petrochemical New Materials Science and Technology Industry Base, Versarien and CIGIU in return for access to a funded science park, access to a pipeline of projects and to locate a factory in a funded Sino-British industrial park within Shangdong Province.

BIGT continues to work with the Director General of the Beijing Municipal Bureau of Economy and IT. The Director General of the Beijing Municipal Bureau of Economy and IT has provided the following statement to the Company:

“The collaboration between Versarien, BIGT, CIGIU and the Beijing Government is completely aligned with the industrial strategic positioning and trend. We will lend our full support, without hesitation. We will also liaise with other Beijing Government Departments and the Beijing District Government to progress this initiative. Throughout the process we will carefully plan the deal structure and conditions and the IP matters. In conclusion we have no problem in supporting this collaboration.”

Whilst the Versarien Board wishes to conclude a deal in China as soon as reasonably possible, it re-iterates its position that it will only do so if it is in the best interests of the Company’s shareholders, The negotiations, whilst protracted, are with the objective of establishing a long-term and significant partnership between Versarien and BIGT in China.

Versarien PLC (LON:VRS), the advanced materials engineering group, today provided an update and clarification on its plans for expansion into China.

On 15 April 2019, the Company announced that it had signed a term sheet with the Beijing Institute of Graphene Technology Co. Ltd (“BIGT”) covering the proposed cooperation between the parties to develop Versarien’s graphene related business in China.  The term sheet envisaged that BIGT would provide funding to Versarien for the proposed wholly owned subsidiary (“WFOE”) and other corporate purposes in the form of an equity investment, providing BIGT with a holding of up to 15% of the issued share capital of the Company, whilst giving existing and prospective private and institutional shareholders the opportunity to participate on the same terms.

The Company can confirm that discussions between BIGT and the Company remain ongoing and that the WFOE has now been successfully incorporated as the Beijing Versarien Technology Company Limited and the business licence has been granted by the relevant Chinese authorities. This will enable the Directors to progress the funding discussions with BIGT.  We look forward to updating shareholders regarding developments as appropriate. 

The Company has previously stated that any deal has to be in the best interests of it and its shareholders and consequently the Company has been working with several parties to secure the most appropriate deal in China.  With regards to a reference made by Neill Ricketts, CEO of the Company, on 8 August 2019, on Twitter, that the Company had another Chinese investor who was interested in up to 29.9% of the Company, the Company can confirm it previously received a proposal from an investor that cited interest to subscribe for shares up to that amount, but this was rejected and the Board determined that the terms with BIGT provided the best opportunity.

Versarien Plc (LON: VRS), the advanced materials engineering group, is pleased to confirm that the Company’s Annual General Meeting will be held at 11am on 24 September 2019 at the offices of Gloucester Rugby at Kingsholm Stadium, Kingsholm Road, Kingsholm, Gloucester, GL1 3AX.

The 2019 Annual Report and Notice of Annual General Meeting will be posted to shareholders later this month and an announcement confirming posting will be made at that time.

About Versarien

Versarien plc, 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.

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.

Gnanomat S.L., 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.
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.

Total Carbide Limited, a leading manufacturer in sintered tungsten carbide for applications in arduous environments such as the oil and gas industry.

Versarien plc (LON: VRS), the advanced materials engineering group, is pleased to announce that it has signed a Letter of Intent with the Company’s textile sector collaboration partner covering the initial launch of high performance sportswear incorporating Versarien’s graphene ink technology.

The Partner, who has a collaboration agreement with the Company, as announced on 8 January 2018, is headquartered in Asia and designs, develops and manufactures a range of different garments for well-known apparel brands globally.

The LOI follows successful independent tests carried out in the UK involving the incorporation of graphene into textiles via fabric finishes using Versarien’s graphene ink technology developed by the company’s subsidiary, Cambridge Graphene Limited. The testing has demonstrated that the incorporation of Versarien’s graphene inks into the textiles provides a number of potential benefits to a user of garments made from them, including enhanced thermal and moisture properties.

The non-binding LOI sets out the intent of the parties to enter into a formal commercial relationship regarding an initial launch of high performance sportswear. The LOI also commits both parties to further product development across different textiles and graphene delivery methods.

Further wearer trials are now underway with a number of well known global sports brands, along with other Partner customers.

Neill Ricketts, CEO of Versarien, commented:

“We are delighted that this collaboration has moved to the next stage with the signing of the LOI. This was the first major collaboration we entered into for our graphene ink technology.

“The independent testing that has been carried out has demonstrated a number of significant benefits that the addition of our graphene can bring and we are confident that the further wearer trials will validate this. We look forward to continuing to work with this Partner with the goal of introducing graphene enhanced high performance sports wear to the market as soon as possible.”

Versarien plc (LON: VRS), the advanced materials engineering group, has announced that it will today showcase an innovative large-scale industrial prototype which aims to improve rail transportation infrastructure.

The prototype under evaluation uses a 3D-printed polymer structure constructed using Versarien’s high-purity, low-defect, graphene enhanced polymer technology. The addition of Versarien’s graphene to the structure is designed to increase its tensile strength and thermal protection, enabling the viable 3D-printing of large-scale transport infrastructure components.

The preview event being held today in Bristol will be attended by investors and partners of Versarien. In particular, attendees will include representatives from other Versarien collaboration partners, together with Chinese, Japanese and UK government representatives.

No material new information is expected to be disclosed at the event.

Neill Ricketts, CEO of Versarien, commented:

“We are delighted to be able to showcase this large-scale prototype structure manufactured using our graphene enhanced polymer technology. The event being hosted by one of our collaboration partners will allow us to demonstrate how we are making significant progress with our graphene technology. Graphene holds the potential to radically transform how future rail infrastructure is designed and installed.

“We look forward to providing further information on this project in due course, together with showcasing further examples of the significant benefits our graphene technology can bring.”

Versarien Plc (LON: VRS), the advanced engineering materials group, has today announced its unaudited results for the year ended 31 March 2019.

Operational highlights

· Thirteen new graphene application collaborations and MOU agreements secured during the year, with one entered into post period, with partners based in the UK and overseas

· Versarien joined the Graphene Engineering Innovation Centre (“GEIC”) as a tier one member gaining access to development and scale-up facilities worth c.£60 million

· Continued investment in capital equipment as collaboration agreements progress

· Acquisition of Gnanomat S.L. (“GNA”), a company based in Spain developing energy storage technology

· Establishment of a US subsidiary, Versarien Graphene Inc., to exploit opportunities in North America

· UK Government continues to support the Company’s international expansion plans by seconding staff to Versarien, an ‘Export Champion’

· PolygreneTM launched, a new graphene enhanced polymer to improve thermal and electricity conductivity

· Mature businesses showing steady financial performance providing stability for the emerging businesses

Financial highlights

· Group revenues remained steady at £9.14 million (2018: £9.02 million)

· Adjusted LBITDA* of £1.1 million (2018: £0.8 million)

· Loss before tax of £2.8 million (2018: £1.6 million) after share based payments charge in the year of £0.7 million (2018: £0.1 million)

· Cash at 31 March 2019 of £4.3 million (2018: £2.3 million)

· Successful fundraising of £5.2 million gross in September 2018

· Net assets increased by 66% to £13.3 million (2018: £8.0 million)

*Adjusted LBITDA (Loss before interest, tax, depreciation and amortisation) excludes exceptional items and share based payment charges.

Post Period Highlights

· Versarien became the first company in the world to complete the US Graphene Council’s ‘Verified Graphene Producer’ programme validating our technology to customers and collaborators

· First graphene orders received from the USA and Japan

· Term Sheet signed with the Beijing Institute of Graphene Technology for China expansion

· EU ‘REACH’ approval to produce up to 10 tonnes of graphene per annum received

· Appointment of Susan Bowen as a Non-executive Director

Commenting on the results, Neill Ricketts, Chief Executive Officer of Versarien, said:

“The year to 31 March 2019 has, again, been one of great progress for Versarien particularly in our emerging technologies businesses, globally and in the UK. The graphene businesses have delivered on our strategy of expansion into global markets and progress is being seen in our existing collaborations, as well as new collaborations being entered into. We look forward to showcasing our new technologies at future investor events.

“Having spent some time examining opportunities for expansion into China, the Board concluded that the best one lies with BIGT and consequently signed a term sheet with them in April 2019. A wholly owned foreign enterprise is being established and will be managed by BIGT on behalf of Versarien, with planned investment from a BIGT managed fund. BIGT will focus on both the manufacture and sale of our graphene in China using our patented technology.

“Opportunities in South Korea, Japan and India are emerging as a result of the support given to us by the UK Government seconded staff and we have established operations in North America, albeit they are at an early stage.

“New graphene production equipment has been installed in the UK and is now up and running at our Cheltenham manufacturing site which will enable us to meet the initial expected demands of our graphene based products. Testing of new equipment is underway which, if successful, would expand our production capacity to up to 30 tonnes per annum of high quality graphene. Manufacture and sale of graphene at these levels requires certain permissions under EU regulations and I am pleased to report that we have been successful in our registration and are now accredited to produce significant volumes of graphene under the EU rules for chemical production.

“Our mature businesses have focussed on efficiency gains and overall have returned acceptable results whilst also looking at opportunities for inclusion of graphene in their future products. This includes using graphene in headphones and mobile phone cases, through to producing Hexotene enhanced ceramics for use in satellite engines.

“I would like to take this opportunity to thank our continually supportive investor base and our employees for their hard work as we look forward to the future with optimism and confidence.”

Chief Executive’s Statement

Versarien consists of two main business segments; Graphene and Plastic Products focussed on delivering graphene solutions through plastics and carbon fibre composites, and Hard Wear and Metallic Products focussed on delivering aluminium and tungsten carbide products.

Graphene and Plastic Products

The graphene businesses continue to make significant progress. We are very proud to be the first company in the world to receive independent verification from the US based Graphene Council that has declared our Nanene graphene nano-platelets meet their standards. Not only is this a confirmation of the quality of our product, but also provides us with a competitive advantage.

With the launch of PolygreneTM, we have again increased our range of graphene-based products, providing a polymer which can improve thermal and electrical conductivity.

The UK Government continues to provide support to Versarien with seconded staff and has also entered into partnership with us as an ‘Export Champion’. This support enables us to increase our global presence and succeed in our global strategy. In China we now have many MOUs (multiple with Fortune 500 companies) which are project related across a multitude of sectors, with work either currently on-going or with preliminary discussions and testing taking place. In South Korea we have two collaboration agreements now in place and discussions with around 20 companies which are on-going and we are engaging with JETRO, a core government organisation for attracting inward investment in Japan. In India we are looking at opportunities for a joint venture arrangement with a suitable partner.

I am pleased to provide an update on our current commercial collaborations:

Date entered into	Description	Current status
October 2017	Collaboration with Israel Aerospace Industries	Development of applications continuing with multiple partners, including GEIC and Warwick Manufacturing Group (“WMG”).
November 2017	Collaboration with Global Consumer Goods Company	Blow moulded bottle samples were successfully produced at customer facility. Samples currently being tested and assessed at customer facility and WMG. A new agreement has also been signed with a separate division of this company. The agreement will focus on the development of flexible packaging solutions and seek to utilise graphene properties in new and existing packaging.
December 2017	Agreement with Global Chemical Major	Masterbatch testing completed with notable improvements in puncture resistance. Further tests underway with Graphinks and Hexotene.
January 2018	Agreement with Global Apparel Manufacturer	First sample garments produced and independently tested to industry standards by a recognised UK based test house. The results show wide improvement in key areas when compared to a non-graphene garment. The key areas included abrasion resistance, moisture and air permeability, water vapour and thermal resistance, stretch, wicking and drying rate. A Second batch of garments is currently being produced and will go to other engagement partners for wearer trials.
February 2018	Medical Technology collaboration at Addenbrooke’s hospital	Initial positive discussions have now been held with two leading global manufacturers of dressings and further multi-partner discussions will be held in the near future.
February 2018	Agreement with the shoemaker Vivobarefoot	Production relocation caused temporary delay to the project. Initial compounding of materials has now been successfully completed with different variations of materials and loadings. Further tests now underway and first samples to be produced. Commercial understanding over a launch product in place.
March 2018	Collaboration with Team Sky (now Team INEOS) for cycling equipment	Project held up due to change of sponsor. The parties will re-engage in September 2019.
March 2018	Collaboration with world leading aerospace group	Sample parts have been sent to us for initial evaluation.
April 2018	Agreement with Luxus	Active supply chain partner, who are working with us on various projects.
May 2018	Consumer goods collaboration for polymer structures in plastics	Initial testing at limited loadings showed a demonstrable improvement in potential use of plastics. Targets have now been set to achieve significant reductions in plastics use. Further development in bottle design and weight/percentageloadings has now commenced.
June 2018	Agreement with Arrow Green Tech	IP application submitted for initial water-soluble polymer. Engagement underway in India with multiple companies across various sectors.
June 2018	Commercial agreement with MediaDevil	First earphones launched into the market in December 2018, with next generation products now being designed. In addition, new accessories such as phone cases with graphene have now been tested, with launch dates currently being planned.
July 2018	Collaboration with ZapGo Ltd	Trials continue with different materials and loadings.
August-2018	Sporting goods collaboration	Initial trials of a new Polygrene mix show significant improvement in outer soles with further development now underway. In addition, work has commenced on a new design for another variation of football shoe. Confirmation that this partner will also feature in the wearer trials for the garments referred to in the update with the global apparel manufacturer.
August-2018	Collaboration with Axia Materials, South Korea	Consortium of companies exploring further funding opportunities and potential new partners.
August-2018	Construction materials collaboration with AECOM	Collaboration progressing well with additional collaboration agreement signed to investigate graphene enhanced concrete structures.
October-2018	Collaboration with Advanced Insulation	Testing underway at customer facility.
December 2018	Collaboration with Chinese Aerospace Company	Work plan created with involved multiple partners, including GEIC and WMG.
December 2018	MOU China Railway	Several projects are now underway including concrete projects which feature multiple partners, including GEIC.
December 2018	LOI/MOU Tungshu Optoelectronics	Our collaboration with Tungshu is continuing with a number of projects identified. These include flexible packaging, thermal interfaces for heat dissipation in electronics,  thermoplastic components, various electrical devices and using graphene insole sensors in Tungshu’s smart wearables.
March 2019	Further collaboration with Chinese Aerospace Company	Workplan created with involved multiple partners, including GEIC and WMG.
May 2019	Collaboration agreement with BP Polymers	Initial workflow plan agreed and being implemented.

The level of our graphene related sales is mainly dependent upon the rate at which our collaborations progress. The year under review has seen significant progress which is expected to validate our business model and provide future sales growth from the current minimal levels. Alongside the collaborations, we have seen an increase in interest following our Graphene Council verification with our first orders from partners in USA and Japan post period end.

During the year we have invested in new plant and equipment aimed at increasing annual production capacity to three tonnes of graphene and one tonne of Hexotene by the end of 2019. This should enable us to meet the expected demand for our high-quality graphene-based products.

We are now in discussions with many cities, provinces and companies in China, and have signed a Term Sheet with BIGT in April 2019. Final contracts have yet to be completed, so there cannot be certainty, but the intention is that other interested parties and regions will form tier two investment opportunities in joint ventures to be agreed.

Since its acquisition in October 2018, GNA has been awarded a patent by the Oficina Espanola de Patentes y Marcas, the Spanish patent office, covering a method of obtaining nanomaterials composed of carbonaceous material and metallic oxides. This has also been filed under the PCT regime.

GNA has also recruited a new Chief Technology Officer and successfully completed the testing of its pilot production plant. It has also entered into collaboration agreements with two supercapacitor manufacturers and is in dialogue with a further three global supercapacitor manufacturers, as well as participating in the European Battery Alliance.

AAC Cyroma, our plastics business, was principally a strategic purchase to allow us to incorporate graphene into plastic products as well as providing revenue and cash flow in its own right. Its revenues have remained stable and returned a reasonable result whilst working with the first mover collaborations, such as with Media Devil and its own customer base, with samples being provided for customer testing.

Hard Wear and Metallic Products

Our Hard Wear parts business has performed in line with the previous year and a recent review of operations has been conducted to improve operational efficiencies. It is particularly pleasing that it has seen an increase it its recent order books and is now involved in a project involving the use of Hexotene in ceramics. We have previously stated that the thermal/aluminum products business is non-core, but nonetheless recent restructuring has improved its business performance.

Key performance indicators

As a Group that consists of mature products supporting the development of early stage technology products, we concentrate on the following financial metrics:

	2019£’000	2018£’000
Revenue	9,140	9,024
Gross margin percentage	27%	28%
Loss before interest, tax, depreciation, amortisation, exceptional costs and share based charges	(1,134)	(801)
Cash used by Graphene and Plastic Products	(1,305)	(1,090)
Cash used by Hard Wear and Metallic Products	(266)	(82)
Cash raised/(utilised) by parent (before loans to/from subsidiaries)	3,567	2,101
Net Cash raised and generated/(used) by the Group	1,996	929

Current trading and outlook

The Group has started the new financial year very positively, with pleasing levels of revenue and profit from its Plastics and Hard Wear and Metallic businesses. With the investment in operational efficiencies made in the year ended 31 March 2019, we anticipate a further positive impact to the results in the current financial year.

We have also seen progress in the US, with four new collaboration agreements having been recently entered into in North America, and were pleased to announce that we received our first order in June 2019 for 12kg of our graphene from a US based company, operating in the oil and gas exploration sector. We also look forward to working with potential new US based partners following the American Graphene Summit in May 2019, where Versarien was a leading participant.

We also look to the future with great excitement regarding our expansion into China, South Korea and Japan which could bring significant growth for the graphene businesses. We have already seen our first order from a North American corporate research and development centre of a Japanese headquartered company. This customer is a global automotive components company that has operations in over 40 countries, employing in excess of 250,000 people.

This current year we expect, with confidence, to see the benefits of the many achievements and progress that we have accomplished during the year ended 31 March 2019, and the continued trend of increased orders for our products.

Neill Ricketts

Chief Executive Officer

Financial Review

Versarien’s revenue for the year ended 31 March 2019 was £9.1 million (2018: £9.0 million) with operating losses before exceptional costs, depreciation, amortisation and share based payment charges of £1.1 million (2018: £0.8 million).

Exceptional costs were £0.4 million (2018: £0.03 million) as a result of the Group’s focus on global expansion and growth through acquisition. The loss before tax for the year was £2.8 million (2018: £1.6 million), after share based payment charges of £0.7 million in the year (2018: £0.1 million).

It is the Board’s intention to continue to align shareholder and senior staff interests through the award of share options rather than just remuneration. IFRS 2 (share based payments) dictates the accounting treatment of such options using simulations such as Black Scholes or Monte Carlo to try and determine the fair value of such awards. These models contain many assumptions, but one which has a material impact on the valuation is share volatility. Versarien, in line with many other AIM quoted shares, has seen a high level of volatility since being admitted to AIM. The consequence of this is that such simulation models allow for large share price movements resulting in a high charge in the year of £0.7 million (2018: £0.1 million). This is a non-cash movement in the accounts and is simply an accounting transaction required under IFRS 2 to reflect the potential future value of the shares.

As part of the expansion of our graphene businesses in the UK and overseas, we have continued to invest heavily in them. We are confident, that whilst revenues of any material amount have yet to be achieved, with the investment that we have made, the accreditations awarded and progress of our collaborations this year, significant future revenues will be achieved. Adjusted LBITDA for the graphene businesses was £1.1 million (2018: £0.9 million).

Our plastics business, AAC Cyroma has had a steady year, returning revenues of £4.7 million (2018: £4.6 million) and EBITDA of £0.2 million (2018: £0.4 million).

Our mature Hard Wear and Metallic businesses have provided stability to support the development of the emerging businesses, with Total Carbide returning revenues of £3.2 million (2018: £3.2million) and EBITDA of £0.5 million (2018: £0.5 million) and Versarien Technologies similarly returning revenues of £1.2 million (2018: £1.2 million) and adjusted LBITDA of £0.1 million (2018 £0.1 million).

Group net assets at 31 March 2019 were £13.3 million (2018: £8.0 million) following the acquisition of Gnanomat S.L. (“GNA”). The consideration for the acquisition was £2,647,000 settled by cash of £0.7 million, by way of GNA issuing new shares in its company to Versarien, and the issue of 1,316,278 new ordinary shares of 1 pence each in Versarien to existing GNA shareholders at an agreed price of 150 pence per share. In September 2018 the Group successfully raised £5.2 million before expenses, and at the year end the Group had cash of £4.3m (2018: £2.3 million), of which £0.6 million (2018: £1.1 million) had been drawn under the invoice finance facilities. As at period end the Company had £0.6 million of headroom in its invoice finance facilities (2018: £0.7 million). The Directors consider this sufficient for our current activities over the coming twelve months having made certain assumptions, further details of which are contained below.

Cash outflow from operating activities was £1.7 million (2018: £1.9 million). The Group invested £0.7 million, net of cash, in acquisitions (2018: £nil), £0.4 million (2018: £0.1 million) in capitalised development costs, and £0.5 million (2018: £0.3 million) in plant and machinery.

Going concern

The financial statements, which are not yet approved, have been prepared on a going concern basis, which the Directors believe to be appropriate for the following reasons:

● The Group meets its day-to-day working capital requirements through careful cash management and the use of its invoice discounting facilities; and

● As at 31 March 2019, the Group had cash balances totalling £4.3 million with £0.6 million of headroom on its invoice discounting facilities.

The Directors have prepared detailed projections of expected future cash flows for a period of twelve months from the date of issue of this preliminary statement. These show that the Group is expected to have sufficient cash available to meet its obligations as they fall due for the foreseeable future (at least twelve months). These projections assume modest sales growth in the mature revenue generating businesses and the continued utilisation of the invoice finance facilities.

After due consideration, the Directors have concluded that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future (at least twelve months). For this reason, they continue to adopt the going concern basis in preparing the consolidated financial statements.

Chris Leigh

Chief Financial Officer

Versarien plc (LON: VRS), the advanced materials engineering group, has today announced that it will be holding an investor event on 24 July 2019 in Bristol, UK, to showcase some of its technology.

There is a strict limit on the number of investors the Company can accommodate and in the interests of fairness, investors wishing to attend the event should email [email protected] and the available tickets will be allocated on the basis of a random draw.

It is expected that attendees will also include representatives from industry and government.

Versarien plc 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.

Cambridge Graphene Limited, supplies novel inks based on graphene and related materials, using patented processes to develop graphene materials technology.

Gnanomat S.L., 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.

Total Carbide Limited, a leading manufacturer in sintered tungsten carbide for applications in arduous environments such as the oil and gas industry.

Neill Ricketts, CEO of Versarien, commented: “The manufacture and sale of graphene at these levels requires certain permissions under EU regulations and I am pleased to report that we have been successful in our registration and are now accredited to produce significant volumes of graphene under the EU rules for chemical production.

“This provides us with the required authority to significantly increase our graphene production in order to meet the commercial demand we anticipate.”

Versarien plc (LON:VRS), the advanced materials engineering group, has today announced that the Company has secured the required approval from the ECHA, the European Chemicals Agency, to manufacture between one and ten tonnes of graphene per annum.

The EU Registration, Evaluation, Authorisation and Restriction of Chemicals (“REACH”) regulations require all companies manufacturing or importing chemical substances into the European Union in quantities of one tonne or more per year to register these substances with the ECHA and receive approval.  Versarien has now received such approval for the substance with EC number 801-282-5, being graphene.

Versarien plc (LON: VRS), the advanced materials engineering group, has today announced that the Company has secured its first graphene orders from the North American corporate research and development centre of a Japanese headquartered company. This customer is a global automotive components company that has operations in over 40 countries, employing in excess of 250,000 people.

After initial graphene quality testing trials, the Customer, has placed development orders for 1kg each of Versarien’s high purity graphene nano platelets (“GNP-HP”) and Nanene. The Customer’s principle operations focus on leading-edge automotive materials and process development, and the development of next-generation, vehicle-related, information and communications technology.

Neill Ricketts, CEO of Versarien plc, commented:

“We are very pleased to have secured this order, our first from a Japanese headquartered company.

This order emphasises the importance to the Company of the seconded employees from the Department for International Trade and their ability to access key markets and truly global corporations. We look forward to working with this customer to help them maximise the benefits the addition of our graphene can bring to a number of their products.”

Versarien plc (LON: VRS), the advanced materials engineering group, has today announced that Susan Bowen has been appointed as a non-executive director of the Company, with immediate effect.

Susan is an experienced business leader with over 20 years of operational experience in the technology sector. She is currently President and CEO of Cogeco Peer 1, a Canadian headquartered company providing managed IT services, where she is responsible for providing leadership and direction for the company globally, with a strong focus on helping customers scale their business. She is also a non-executive director of JISC, a membership organisation providing digital solutions for UK education and research and a member of the techUK membership, finance and performance board. Prior to joining Cogeco Peer 1 in 2016, she spent 17 years at Hewlett Packard, latterly as Chief of Staff UK and Ireland and formerly as Director of Strategy in the UK and Ireland.

Commenting on the appointment Neill Ricketts, CEO of Versarien plc, said:

“We are delighted to welcome Susan Bowen to the Versarien board. She brings strong digital, commercial and people management skills gained from her current and previous transformational roles.

In particular Susan has significant experience in business scale up and we look forward to utilising her skills and experience as Versarien progresses its graphene commercialisation strategy.”

Versarien plc (LON: VRS), the advanced materials engineering group, has today announced that the Company has secured its first graphene order from a US based company, operating in the oil and gas exploration sector.

This order is for 12kg of Versarien’s high purity graphene nano platelets (“GNP-HP”) integrated into a polymer masterbatch by the Company and follows successful laboratory testing and industrial trials by the Customer. The Versarien GNP-HP enhanced material will be used by the Customer in down-hole drilling components for their initial scale up process. If the scale up is successful, additional significantly larger orders are anticipated.

Neill Ricketts, CEO of Versarien plc, commented:

“We are very pleased to have secured this order following extensive testing of our material by the Customer. It is validation of both the benefits our graphene can deliver in this application and our focus on building our US customer base.

“The oil and gas exploration sector is constantly looking for new technology to enhance drilling activities, allowing new sources to be reached more efficiently. This provides for significant cost and environmental benefits and we are proud that our graphene can play its part.

“We believe we are in a strong position to build a wider customer base in the oil and gas sector.”

Versarien plc (LON: VRS), the advanced materials engineering group, has today provided an update on the Company’s recent activities in the United States of America.

Further to the announcement of 21 March 2019, the Company has now reported that it is now fully operational at its new US office and laboratory facility in Houston, Texas, which is designed to act as a hub for the Company’s activities in North America.

The establishment of this US hub has already enabled the Company to accelerate its progress in North America with various new partners, in addition to the work it has been undertaking with the US National Graphene Association and various existing collaboration partners in the region.

New agreements that have been recently entered into with partners in North America, include:

· An agreement with a US manufacturer of speciality plastic packaging and transportation vessels for volatile chemicals to explore the use of Versarien’s graphene to enhance these products, in particular to reduce weight and improve the barrier properties of the vessel materials.

· A collaboration agreement with a North American graphene focussed company to investigate the addition of Versarien’s graphene to certain polymer resins for the production of products used in the consumer goods market.

· A collaboration agreement with a leading US producer of carbon nanotubes to explore the combination of Versarien’s graphene with carbon nanotubes to evaluate potential performance enhancements for a variety of products and systems, primarily in the fields of energy storage and polymer resins.

· A collaboration agreement with NovoCarbon Corporation, a US-based, clean technology minerals processing company, supplying customers with innovative, high quality value-added carbon products. This collaboration agreement covers the establishment of graphene supply chain components to facilitate the use of the Company’s graphene products in the consumer goods and other sectors.

As previously announced, the Company will be a leading participant in the American Graphene Summit, being hosted by the National Graphene Association (NGA) in Washington DC on 21 and 22 May 2019. The summit, keynoted by Senator Roger Wicker, intends to bring together leaders of US industry and government agencies and key international figures in the graphene sector to engage in a dialogue on shaping the global architecture surrounding graphene technologies and its impact on the US and global economy.

Neill Ricketts, CEO of Versarien plc, commented:

“We are very pleased to have our dedicated facility in Houston up and running. This has enabled us to more efficiently progress a number of new and existing relationships and accelerate our traction in the US. We now have relationships with over 25 companies in North America, encompassing sectors as diverse as automotive, aerospace, consumer goods, oil & gas, sports equipment and speciality plastics.

“We continue to receive a high number of enquires for the supply of our graphene and other 2D materials from leading US companies and others globally. Versarien is now truly operating on a global basis and I look forward to providing further updates on our activities with our multiple collaboration partners in due course.”

Versarien plc (LON: VRS), the advanced materials engineering group, has today announced that it has signed a term sheet with Beijing Institute of Graphene Technology Co. Ltd 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, Beijing Institute of Aeronautical Materials, 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 plc, 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.”

Versarien plc (LON: VRS), the advanced materials engineering group, has today announced that the Company is the first graphene company in the world to successfully complete the Graphene Council’s “Verified Graphene Producer” programme.

The US-based Graphene Council’s Programme is an independent, third party verification system that involves a physical inspection of the production facilities, a review of the entire production process, a random sampling of product material and rigorous characterisation and testing by a leading, international materials laboratory. The Programme is based on the most recent developments in globally recognised graphene standards, surveys of graphene producers, researchers and users, as well as analysis of commercially available graphene products.

The Graphene Council have designed the Programme to be an important step in providing customers and end-users with a degree of confidence, that has not existed before, that they are sourcing material from a reputable supplier, bringing transparency and clarity to a rapidly changing and opaque market for graphene materials.

Terrance Barkan, Executive Director of The Graphene Council, commented:

“Successful commercialisation of graphene materials requires not only the ability to produce graphene to a declared specification, but to be able to do so at a commercial scale. It is nearly impossible for a graphene customer to verify the type of material they are receiving without going through an expensive and time-consuming process of having sample materials fully characterised by a laboratory that has the equipment and expertise to test graphene.

“The Verified Graphene Producer programme developed by The Graphene Council provides a level of independent inspection and verification that is not available anywhere else.

“We are pleased to have worked with the National Physical Laboratory (NPL) in the UK, regarded as one of the absolute top facilities for metrology and graphene characterisation in the world. They have provided outstanding analytical expertise for the materials testing portion of the Programme.”

Neill Ricketts, CEO of Versarien plc, commented:

“We are delighted that Versarien is the first graphene producer in the world to successfully complete the Graphene Council’s Verified Graphene Producer programme.

“This is a huge validation of our technology and will enable our partners and potential customers to have confidence that the graphene we produce meets globally accepted standards.

“There are many companies that claim to be graphene producers, but to enjoy the benefits that this material can deliver requires high quality, consistent product to be supplied. The Verified Producer programme is designed to verify that our production facilities, processes and tested material meet the stringent requirements laid down by the Graphene Council.

“I am proud that Versarien has been independently acclaimed as a Verified Graphene Producer and look forward to making further progress with our collaboration partners and numerous other parties that we are in discussions with.”

Versarien plc (LON: VRS), the advanced materials engineering group, has today announced that Matt Walker, who has been on secondment to the Company since May 2018 from the UK Government’s Department for International Trade, has had his secondment extended for a further year to May 2020.

The DTI have agreed that given Matt’s contribution to Versarien’s overseas investment ambitions, in particular in China and South Korea, existing collaborations and overall furtherment of Versarien’s international business it is appropriate that his secondment is extended.

Neill Ricketts, CEO of Versarien, commented:

“We are delighted that the DIT have agreed to extend Matt’s secondment for a further year. Matt has already provided a significant contribution to Versarien, particularly with regard to our activities in Asia and with a number of our collaboration partners. We look forward to continuing to benefit from his skills and experience as we further process our international business.

“I would like to express my sincere thanks to the Department for International Trade and the UK Government more widely for their continued support, and in particular their faith in Versarien through continuing to second such a senior resource.”

Versarien plc (LON: VRS), the advanced materials engineering group, has today provided an update on the Company’s activities in the United States of America.

Versarien has recently established a new US corporate entity, Versarien Graphene Inc, to facilitate the Company’s graphene and other 2D materials activities in the USA. The Company is additionally in the process of establishing a new office, laboratory facility and applications centre in Houston, Texas that will act as a hub for the Company’s activities in North America.

Patrick Abbott has been appointed as Versarien’s Vice President North American Operations to oversee these activities and he will be based at the Company’s Houston facility once established. Patrick is an experienced speciality materials professional with over 20 years’ experience in the sector. He is a former US Marine Corps Officer who spent over 16 years in a variety of global business development and marketing roles at BASF. In 2015 and 2016, Patrick was part of the team transitioning specific product lines to Huntsman Corporation. Subsequently he established Global Marketing Empire Solutions, a disruptive technology consulting company and joined XG Sciences, a company focussed on graphene nano technology, as their global sales manager. At XG Sciences he was tasked with assisting the executive team in transitioning the company from an academic company to full commercialisation.

The establishment of this US presence follows on from work that Versarien has been undertaking with the US National Graphene Association and various collaboration partners in the region. Further North American potential collaboration partners and customers have been identified, both through inbound enquires and proactive approaches, and it is intended that the Houston facility and additional resource will enable these to be more efficiently progressed.

The Company is pleased to be participating in the UK Government organised “UK Technology and Capability Showcase” being held at Collins Aerospace in Charlotte, North Carolina, on 25 March 2019 where the Company will be presenting its 2D materials technology to Collins Aerospace representatives.

The Company additionally looks forward to being a leading participant in the American Graphene Summit, being hosted by the National Graphene Association (NGA) in Washington DC on 21 and 22 May 2019. The summit, keynoted by Senator Roger Wicker, intends to bring together leaders of US industry and government agencies and key international figures in the graphene sector to engage in a dialogue on shaping the global architecture surrounding graphene technologies and its impact on the US and global economy.

Zina Jarrahi Cinker, Executive Director of the National Graphene Association, commented:

“The establishment of Versarien’s first U.S-Based application development facility in Houston, Texas is a significant step for the development of graphene and graphene technologies in the United States. Versarien is a key member the elite Graphene Industry Council and I strongly believe Versarien Graphene Inc will be well positioned to serve the North American end user markets and facilitate the integration of graphene in strategic product segments.”

Neill Ricketts, CEO of Versarien plc, commented:

“We are very pleased to be moving to the next stage of our development in the US with the establishment of Versarien Graphene Inc and a dedicated facility in Houston.

“We are already pursuing a number of substantial opportunities in the US, particularly through the support of the National Graphene Association, and I expect our level of activity to significantly increase in the coming months, particularly given the high number of enquires we have had for the supply of our graphene and other 2D materials from leading US companies.

“I would like to express my sincere thanks to the support and assistance we have received from the National Graphene Association and Senator Wicker to develop our business and network in the US.

“I am also particularly pleased we have secured the services of Patrick Abbott and I would like to formally welcome him to the Versarien team. His skills and experience will be invaluable as we look to build more relationships and commercialise graphene enhanced products with US companies.

“Coupled with the recent progress we have made in China and elsewhere we remain confident that we can make further rapid progress this year. I look forward to providing further updates on our US and other activities in due course.”

Versarien plc (LON: VRS), the advanced materials engineering group, has today announced that it has signed a Letter of Intent with Tunghsu Optoelectronic Technology Ltd. to further progress the relationship between the parties. This LOI follows the Memorandum of Understanding Versarien entered into with Tunghsu Optoelectronic as announced on 7 November 2018.

Versarien and Tunghsu Optoelectronic will establish a joint implementation committee, composed of three members from each party, to progress the plans envisaged by the LOI, with a view to ultimately entering into manufacturing joint venture, although there can be no guarantee that this outcome will ultimately be achieved.

The LOI details the parties desire to work together to develop and manufacture in China new generation graphene heaters based on the micro-flow graphene ink technology from Versarien’s subsidiary Cambridge Graphene Limited. The LOI additionally details the party’s intention to jointly develop other products utilising a variety of Versarien’s 2d materials, including graphene-enhanced sports equipment and smart wearable devices.

Neill Ricketts, CEO of Versarien plc, commented:

“We are very pleased that our relationship with Tunghsu Optoelectronic has moved to the next stage with the signing of this LOI.

“We have been working closely with Tunghsu Optoelectronic since November last year and we look forward to progressing our research and development activities with them with a view to ultimately establishing a joint manufacturing capability in China.

“Tunghsu Optoelectronic is a leading global enterprise and we are delighted that they have recognised the quality of our graphene and wish to deepen their relationship with Versarien.

“We are also making good progress with our other collaborations in China and elsewhere. I look forward to providing further updates in due course.”