REG - Versarien PLC - G-SCALE Update & Innovate UK Loan Variation

VersarienAnnouncement

05/12/2022 07:00

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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
£5 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 poured
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 To 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
(https://www.versarien.com)

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