Join our daily newsletter At The Bell to receive exclusive market insights
- First Graphene (FGR) announces an exclusive technology partnership deal with US-based graphite materials company NeoGraf Solutions to develop and grow the graphene market in the US
- The 10-year agreement involves NeoGraf selling First Graphene’s PureGRAPH products under its Graf-X brand and is subject to performance measures that commence with a minimum uptake of two tonnes of PureGRAPH in the first year
- Achieving the minimum uptake of two tonnes results in potential revenue for First Graphene of between $305,000 and $375,000 annually
- The company says increasing to the minimum to 10 tonnes per annum in year four onwards generates annual revenues of between $1.5 million and $1.8 million a year
- FGR shares up 5.88 per cent to 18 cents
First Graphene (FGR) says it has signed an exclusive technology partnership deal with US-based NeoGraf Solutions to develop and grow the graphene market in the US.
Under the 10-year agreement, graphite materials provider NeoGraf will sell First Graphene’s PureGRAPH products under the US company’s Graf-X brand, which has an established reputation in the US market, according to First Graphene.
Achieving the minimum uptake of two tonnes in the first year of the partnership results in potential revenue for the company of between $305,000 and $375,000 annually depending on the mix of products ordered.
Increasing the minimum to 10 tonnes per annum in year four onwards generates annual revenues for First Graphene of between $1.5 million and $1.8 million, again depending on product mix and based on current pricing models.
If the annual minimum tonnages are not met, the agreement reverts to a non-exclusive arrangement.
“This deal provides a direct path into several established and emerging sectors in the US,” First Graphene Managing Director and CEO Michael Bell said.
“Not only is NeoGraf a well-known, US-based company, but it has a strong reputation and relationships with key organisations in target industries that know and understand how graphene can benefit them.”
FGR shares were up 5.88 per cent to 18 cents at 2:02 pm AEDT.
