(AIM: VRS ) wholly-owned subsidiary, Versarien Graphene (Hong Kong) Limited has signed a 50/50 joint venture agreement with Young-Graphene (Beijing)Technology Company Limited.
Shares are trading up almost 50% following announcement of the JV.
Versarien’s wholly foreign owned enterprise (Beijing Versarien Technology Co., Ltd.) will work with Young-Graphene to develop applications for Versarien’s technologies in China.
Both parties will invest RMB1 million (c.£121,000) over the next 12 months, based on certain milestones, with the joint venture having 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 joint venture and end-users.
The agreement includes, and is contingent on, a commitment by Young Graphene 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. Half of any gross funds raised in these subscriptions will be committed to investment in the joint venture activities in the PRC.
Young-Graphene 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 Co. Ltd.
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.”
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