Versarien enters agreement to promote interests in South Korea, secures £1.93 million strategic investment

Versarien recently announced that it has entered into a wide-ranging series of agreements with Graphene Lab, a South Korean company specializing in chemical vapor deposition (CVD) graphene, including sensors, OLEDs, and flexible transparent touch panels, with the intention of advancing both Versarien's and Graphene Lab's proposed activities in South Korea.

This follows Versarien's acquisition of certain graphene production related assets and intellectual property from South Korea based Hanwha Aerospace, as announced on 22 December 2020.

In addition, Graphene Lab has made a strategic investment of £1.93 million in the Company through a subscription for new Ordinary Shares.

Graphene Lab's new agreement with the Company's wholly owned subsidiary in South Korea, Versarien Korea, covers a number of matters pertaining to Versarien and Graphene Lab's proposed activities in South Korea. The main elements of the agreement are:

  • The agreement provides a license to Graphene Lab to utilize, exclusively in South Korea, 14 of the patents acquired through the Acquisition for a 5% royalty on sales payable to Versarien;
  • Under the agreement, Graphene Lab has the right to use certain Versarien trademarks on payment of a 2% royalty on sales to Versarien;
  • Graphene Lab will acquire 15% of the shares in Versarien Korea at their nominal value and the board of Versarien Korea will, in due course, comprise five directors, of which four will be nominated by Versarien and one by Graphene Lab;
  • Graphene Lab has leased new premises in South Korea and Versarien Korea is taking a sub-lease over part of that facility, to locate the equipment acquired as part of the Acquisition. Additionally, Versarien Korea and Graphene Lab have agreed to share equipment at an agreed daily rate; and
  • Graphene Lab will provide certain operator and maintenance support to Versarien Korea at an agreed cost.

Neill Ricketts, CEO of Versarien, commented: "We are delighted to have secured this agreement with Graphene Lab, which will enable us to advance our plans in South Korea, following the Acquisition in December. I am also pleased that our partnership with Graphene Lab has been further reinforced by the stake they have taken in Versarien. We are excited by the opportunities for Versarien in South Korea, including for new product developments, and we look forward to providing updates in due course."

Posted: Apr 12,2021 by Roni Peleg