Versarien Graphene (Hong Kong), a wholly-owned subsidiary of Versarien, recently signed a joint venture agreement with Young-Graphene (Beijing) Technology Company(YG). YG has appointed the Secretary General of the China International Graphene Industry Union to act for it in this matter and is supported by both CIGIU and Beijing Institute of Graphene Technology. Versarien’s foreign wholly owned enterprise (Beijing Versarien Technology) will become the joint venture company with YG for the development of its activities in China.
The agreement signed with YG stipulates that a 50%-owned Chinese Joint Venture will be formed, for the development of applications for Versarien’s technologies in the region.
A RMB1 million (c.£121,000) initial investment each by Versarien and YG will be made over the next 12 months subject to certain milestones.
The Joint Venture will have exclusive use of Versarien’s technologies in the PRC. Versarien will retain rights to its existing technologies and intellectual property, with newly developed intellectual property being retained by the JV and/or the end users.
The agreement includes a commitment by YG to procure subscription for Versarien ordinary shares from third parties in three tranches, which in aggregate will total up to 15% of Company’s current issued share capital (“Versarien Share Subscriptions”).
Half of any gross funds raised in these subscriptions will be committed to investment in the JV’s activities in the PRC.
Versarien will introduce to the PRC the graphene technologies owned or developed by Versarien, initially through the Graphene Seed Incubation Park located in Beijing.
Commenting on the Agreement, Neill Ricketts, Chief Executive Officer of Versarien, said: “Despite the impact of Covid-19 around the world, the Company has been able to continue to make progress on executing its strategy in China, as illustrated with the confirmation of this joint venture agreement. As highlighted in our February 2020 update, discussions are continuing to facilitate an equity investment in Versarien.”