Versarien PLC (LON:VRS) hit a new 52-week low this week with a slowly dropping share price since July 2015. While this may be a low point for those already invested in the company on the flip side surely it’s also a great opportunity for new investors? There are three main areas to the company, Total Carbide Limited a leading European manufacturer of sintered tungsten carbide mostly used for applications in the oil and gas industry. DV Composite Tooling Limited a joint venture with Dimar Limited, a leading manufacturer of cutting tools based in Israel. 2-DTech Limited which is a spin-out from the University of Manchester, the birthplace of graphene and home to the Nobel Prize winning academics Geim and Novoselov, specialises in the supply of graphene products and the transfer of fundamental science to applied technology.
While the company has made advancements across all areas, its 2-DTech Limited is making great strides forward with the granting of a US patent that now paves the way for a high quality mass production process to start which will supplement its European status. Versarien plc have been busy scaling up the production to commercially viable levels of graphene nano-platelets and this has culminated in the launch of a dedicated e-commerce website to increase its blue chip enquiries. The company have invested money from an oversubscribed placing into accelerating the progress of technologies, sales and marketing. Some of the money was used to buy intellectual property rights from the University of Manchester for a graphene process that will support a future revenue stream.
Looking at the balance sheet at a first glance you could be forgiven for thinking that things don’t look too good, but when you consider the investment, restructuring and cost cutting efforts made recently and the interest from some very large international companies then you begin to realise that the company is actually in a good position moving forward. When we spoke with CEO Neil Ricketts last he said “So my view that 2D-Tech and Versarien at the moment have the opportunity to be a world-leader in this particular type of technology. Over the last 6 months, we’ve been making sure that we are extremely well positioned to be able to really grasp that opportunity.”
With the increasing interest and demand for graphene, would now be a good time to invest. Is Versarien PLC about to bounce back up?