The content of this blog is not intended as investment advice. Please do you own research.
Share Price: 17.375p
Market Cap: £22.8m
What do Versarien do?
Versarien PLC consists of five companies, all engaged around the advanced engineering materials business, developing valuable new materials through the commercialisation of new manufacturing processes.
Graphene has been hailed as the wonder material that will revolutionise materials in many different industries. It was first isolated in 2004 by two researchers at The University of Manchester.
It’s the thinest of all materials, being only one atom thick.
It’s the strongest material ever measured, about 200 – 300 times stronger than the strongest steel.
It’s flexible and stretchable.
It has the highest semi-conductivity off all materials, including copper.
It is the most impermeable of all materials.
Due to these properties, its application for commercial puproses are numerous. The video below to gives an excellent insight into graphene’s history and potential.
3 reasons to add Versarien (VRS) to your Watchlist
REASON 1: POTENTIAL
As you can see from the video and infographic above, the uses for Graphene are mind blowing.
It has the potential to be a monumental game changer, in many industries. In fact, CEO of Versarien, Neill Ricketts says, there’s so many possibilities that they have to concentrate on the most beneficial, in the short term.
REASON 2: NANENE
Most importantly Versarien, with Nanene, is one of the few companies in the world who are now able to commercially produce independently verified, high quality graphene.
In fact they’ve already starting producing and selling Nanene. On November 29th last year, Versarien received received an order with a value of over £100,000 for graphene in the form of Few Layer Graphene Nano Platelets from a European commercial OEM customer, in conjunction with the National Graphene Institute.
Neill Ricketts, CEO of Versarien, commented: “We believe that this order is one of the first significant orders placed in the UK to supply high quality graphene. Versarien is quickly becoming the go to place for high quality GNPs globally, having successfully scaled the business from the lab to the production arena.
“We expect the use of graphene to continue to gain further commercial traction and Versarien is very well placed to be at the forefront of delivering high quality graphene for multiple applications. We will continue to scale our production to meet demand as it occurs.”
As Graphene is often talked about being the next big game changer, a lot of companies are attempting to enter the market, so why choose Versarien?
1. They have patented processes for both the graphene nano-platelets and the ink manufacture.
2. They are currently the only company willing to independently validate their material.
3. They are the only company with Cambridge and Manchester University (the home of Graphene) as shareholders and co-owners plus they have access to the very best academics such as Prof. Andrea Ferrari and Prof. Robert Young.
4. They have deals with the Cambridge graphene centre and the National graphene institute, who they supply both with material and as a result have access to almost £100m of facilities.
5. They also delivered what is probably the single largest graphene order.
Versarien have all the foundation work completed and now sit with a suite of independent data for their material and the use of the material in application. This is a different approach to most companies who are still developing whilst trying to raise cash and run a business.
REASONS 3: SHAREHOLDERS
The shares are very tightly held among insitutions including, Henderson & Miton Asset Management.
“As at 31 January 2017, the number of shares in issue was 121,294,003 and and insofar as the Group is aware, as at 31 January 2017 46.06% of the Group’s AIM securities were not in public hands.”
Neill Ricketts, the CEO, is also one of the biggest shareholders, with over 12% of stock.
On the 6th March, Versarien raised £1.5m via the issue of 10,036,699 shares at 15p. So the number of shares in issues have now increased to 131,330,702 but most of the institutions above, also took part in the fundraise, so the percentages are largely unchanged.
I always like to see a CEO having a lot of skin in the game, after all, if the boss of the company isn’t prepared to risk their own capital why should other investors? Another sign of confidence, is that the institutions, on the register, also took part in the recent fundraise.
In the world of graphene, Versarien have the best possible connections including the Central Goverment, The Dept of Trade, Innovate UK, the Universities of Exeter, Ulster and Liverpool.
Let’s not forget, they also have unique relationships with Cambridge and Manchester Universities (the home of graphene) and both are shareholders and co-owners.
They are one of the few companies in the world who are now able to commercially produce independently verified, high quality graphene to order.
If graphene really has the potential to change the so many industries of the world, as many experts predict, then Versarien are well placed to benefit and with a market capitalisation of just £22.8m, I’d say this benefit could be substantial.
You can watch, CEO, Neil Ricketts’ latest presentation below:
Other Versarien news releases worth noting are:
16th February 2017
Signed heads of terms regarding a distribution agreement with Lansdowne Chemicals Plc for its recently launched new graphene brand Nanene.
19th December 2016
Signed an agreement with Fern Plastic Products Ltd to manufacture injection moulded products using graphene enhanced polyaryletherketone (PAEK) materials.
14th December 2016:
Signed an agreement with Scafell Organics Ltd to develop graphene enhanced polyaryletherketones (PAEK) materials.
27 October 2016:
Announced the participation of the Company’s subsidiary, 2-DTech Ltd, in a new project funded by the EPSRC (Engineering and Physical Sciences Research Council).
13th July 2016:
Versarien and Haydale Graphene Industries plc signed a memorandum of understanding to collaborate on and accelerate the development of their respective graphene projects.
23rd June 2016:
Memorandum of Understanding with CT Engineering Group to develop novel graphene enhanced composite components for the aerospace industry using Versarien’s graphene technology.
14th June 2016:
Memorandum of Understanding with Absolute Engineering Ltd to develop novel technologies for the printing industry, including graphene enhanced composites.
11th May 2016:
Memorandum of Understanding with Bromley Technologies Ltd to collaborate on the development of graphene enhanced carbon fibre products using Versarien’s graphene nano platelets.
20 April 2016:
Memorandum of Understanding with WMG (“Warwick Manufacturing Group”) to collaborate on the production of power storage devices such as batteries and supercapacitors using Versarien’s graphene nano platelets.
31 March 2016:
Started working with with 3D printing specialists E3D Online Ltd in initial trials for incorporating graphene into its 3D printing process.
7 September 2015:
US patent protection for its volume graphene platelet production process, details of which were announced on 11 June 2015.
11 June 2015:
Announced that its graphene development subsidiary, 2-DTech, has made a major advance in graphene platelet production, which the Board believes will accelerate potential commercial applications for graphene and graphene products.
21st November 2014:
Signed a Memorandum of Understanding with The National Graphene Institute, which once finalised will result in 2-DTech becoming a project partner of the NGI.
14 April 2014:
Entered into an agreement to acquire 85 per cent. of the issued share capital of 2-DTech from The University of Manchester. 2-DTech specialises in the supply, characterisation and early stage development of graphene products.
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The content of this blog / podcast (or content associated with it) is not intended as investment advice and people featured may hold positions in the companies they talk about. Please do you own research.