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.