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Versarien proceeding discussions over Beijing partnership

By Josh White

Date: Friday 09 Aug 2019

Versarien proceeding discussions over Beijing partnership

(Sharecast News) - Advanced materials engineering company Versarien updated the market on its plans for expansion into China on Friday.
The AIM-traded firm had announced on 15 April that it signed a term sheet with the Beijing Institute of Graphene Technology (BIGT), covering the proposed cooperation between the parties to develop Versarien's graphene-related business in the country.

It said the term sheet had envisaged that BIGT would provide funding to Versarien for the proposed wholly-owned subsidiary, and other corporate purposes, in the form of an equity investment.

That would have provided BIGT with a holding of up to 15% of the issued share capital of the company, while 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 [wholly-owned subsidiary] has now been successfully incorporated as the Beijing Versarien Technology Company, and the business licence has been granted by the relevant Chinese authorities," the board said in its statement on Friday.

"This will enable the directors to progress the funding discussions with BIGT.

"We look forward to updating shareholders regarding developments as appropriate."

The company had previously stated that any deal needed to be in the best interests of it and its shareholders, and as a result the board said it had been working with several parties to secure the "most appropriate" deal in China.

"With regards to a reference made by [CEO] Neill Ricketts on 8 August 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," the board said.

"This was rejected, and the board determined that the terms with BIGT provided the best opportunity."

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