Portfolio co Applied Graphene to float on AIM

RNS Number : 4001Q

IP Group PLC

14 October 2013

 



FOR RELEASE ON

14 October 2013

IP Group - Portfolio company Applied Graphene Materials announces its intention to float on AIM

IP Group plc (LSE: IPO) ("IP Group" or "the Company" or "the Group"), the developer of intellectual property based businesses, is pleased to note that portfolio company Applied Graphene Materials plc ("AGM" or "Applied Graphene Materials") has announced its intention to raise funds and seek admission of its ordinary shares to trading on AIM.

Applied Graphene Materials, a spin-out from Durham University, has developed a proprietary process for the manufacture of high specification graphene. IP Group holds a 22.1% beneficial interest while the Finance for Business North East Technology Fund, managed by the Group, holds a 21.7% interest.

Dealings in AGM are expected to commence on AIM in November. N+1 Singer is acting as Nominated Adviser and sole Broker to AGM. The fund raise will enable AGM to scale up production and accelerate commercialisation with blue chip partners. 

The full text of the announcement follows.

"NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART IN OR INTO THE UNITED STATES OF AMERICA, THE RUSSIAN FEDERATION, CANADA OR JAPAN OR INTO ANY OTHER JURISDICTION WHERE SUCH AN ANNOUNCEMENT WOULD BE UNLAWFUL

14 October 2013

Applied Graphene Materials plc

("AGM", "Applied Graphene Materials" or the "Company")

Announces its intention to float on AIM

Applied Graphene Materials, a UK based graphene manufacturer, today announces its intention to raise funds and to seek admission of its ordinary shares to trading on AIM ("Admission"). Dealings are expected to commence on AIM in November 2013. N+1 Singer is acting as Nominated Adviser and sole Broker to the Company.  The fundraise will enable the Company to scale up production and accelerate commercialisation with blue chip partners.

Scalable, Proprietary Production Process

Applied Graphene Materials, formerly known as Durham Graphene Science, was founded by Professor Karl Coleman, a Professor of Inorganic Chemistry at Durham University and was spun-outfrom Durham University in 2010. It is currently manufacturing high purity graphene.   

Since its isolation in 2004, graphene has attracted significant commercial and academic interest given its unsurpassed electrical, thermal and mechanical properties.  However, its adoption has been hampered by the inability to produce graphene cost efficiently and at scale.

The Company manufactures graphene through a proven, proprietary, continuous and scalable 'bottom-up' process which involves assembling carbon precursors into a graphene sheet.  AGM owns the intellectual property (patent applications have been filed) and there is significant know-how behind the process. Unlike most other large volume graphene production techniques, AGM's process does not rely on the supply of graphite and is capable of cost efficiently and continuously producing high purity graphene. 

It has recently completed the commissioning of its first commercial scale facility based at the Wilton Science Park on Teesside, which is capable of producing one tonne of graphene per year.  The Company intends to use part of the proceeds of the fundraise to, in the near term, expand the capacity of its plant to eight tonnes over the next 18 months.

Graphene - a wide range of end markets

Graphene possesses an unsurpassed combination of high performance characteristics, including its mechanical stiffness, strength and elasticity, its electrical and thermal conductivity, as well as its transparency and impermeability. These properties open up significant opportunities for graphene as a replacement for existing materials in applications in a wide range of fields, including consumer, military, engineering, energy, automotive and industries that require protective coatings, lubricants and barrier films. It is currently being used in very small quantities in certain manufacturing processes for consumer electronics and sporting goods.   

Graphene Market - set for significant growth

Total demand for graphene is anticipated to increase from circa 40 tonnes per annum currently to circa 400 tonnes by 2017. Market forecasts* suggest a market for graphene products of US$195 million by 2018 growing to US$1.3billion by 2023. 

Blue-chip commercial partners

The Company's commercial strategy is to be a value-added supplier of graphene-based performance materials to partners manufacturing products incorporating graphene.  AGM possesses experience and expertise in handling and dispersing graphene into solutions that can be readily incorporated into manufacturers' products in such a way as to optimise the impact of graphene's properties. The Company currently has commercial agreements in place with nine partners in different application areas, with the Company working alongside each partner to assess the feasibility of incorporating its graphene  into the partner's products to enhance their properties. 

Use of funds

Investment is sought to scale up the capacity of AGM's plant to eight tonnes per annum over the next 18 months, for investment in technical and business development, commercial partnerships and to extend the applications capability.

Commenting on the decision to float on AIM, Jon Mabbitt, Chief Executive Officer of Applied Graphene Materials commented: "Applied Graphene Materials' planned admission to AIM marks a significant step forward in the Company's development. The global appetite for, and interest in, graphene is growing at a rapid pace.  Many industries have recognised the significant qualities it possesses.  We have seen considerable interest from blue-chip businesses which have recognised the advantages of our production process, enabling us to continuously produce graphene cost efficiently on a commercial scale. Admission to AIM will provide the Company with the funding for its next phase of development and build our position as a global graphene manufacturer."

* BCC Research:  Graphene: Technologies, Applications, and Markets September 2013

For further information, please contact:

Applied Graphene Materials
Jon Mabbitt, Chief Executive Officer Oliver Lightowlers, Chief Financial Officer	[phone]
N+1 Singer
Shaun Dobson / Richard Lindley	[phone]
Hudson Sandler
Charlie Jack / Emily Dillon	+44 (o) 207 796 4133

About Applied Graphene Materials

Applied Graphene Materials was founded as a spin-out from Durham University, in 2010.   AGM has developed a proprietary process for the manufacture of high specification graphene. AGM manufactures graphene through a sustainable, bottom-up process, which unlike most other graphene production techniques does not rely on the supply of graphite and is capable of producing high purity graphene using a continuous and cost efficient process. The process is readily scalable and AGM owns the intellectual property and know-how behind the process.  The Company is based in the Wilton Science Park on Teesside.  Further information can be found at www.appliedgraphenematerials.com

Chair and management team

Dr. Bryan Dobson, Non-Executive Chairman

Bryan has over 33 years' experience in the chemical industry with ICI Plc and Croda International Plc. Bryan started his career with ICI in 1978 and had a number of roles, both in the UK and overseas, including being European Regional Director of ICI Uniqema in the Netherlands in 2006. Following the acquisition of Uniqema by Croda International plc in September 2006, Bryan remained within the group and was President of Global Operations from 2008 until his retirement in 2011. He has held a broad range of senior business, technical and operational roles in the UK, the US, Belgium and the Netherlands. He is also currently a non-executive director of the Newcastle upon Tyne Hospitals NHS Foundation Trust and of Revolymer plc, an AIM listed technology company which designs, develops and formulates polymers for consumer goods. Bryan holds a Bachelor of Arts from the University of Cambridge and a PhD from the University of Newcastle upon Tyne. He joined the Company in April 2012 as Chairman.

Jon Mabbitt, Chief Executive Officer

Jon is an experienced Managing Director with 25 years' experience in senior positions in manufacturing and engineering. From 2008 to October 2012, Jon was Managing Director of Umeco Composite Structural Materials, one of two divisions within Umeco plc, a £250m revenue business listed on the London Stock Exchange's Main Market. Prior to that, between 2006 and 2008, Jon was the Managing Director of Advanced Composite Group Limited, a subsidiary of Umeco plc, which was acquired in 2004. In this role he was responsible for 350 people and led the company through a period of significant organic growth and targeted acquisitions in the UK and the US. Jon also held the positions of Group Operating Director, General Manager, Sales Manager and Technical Sales Engineer with Advanced Composite Materials Limited, having joined in 1984. Jon left Umeco plc following its acquisition by Cytec Industries Inc. in July 2012. Jon's technical expertise is broad with an in-depth knowledge of advanced composite materials. He holds a BEng from the University of Sheffield. Jon was appointed Chief Executive of the Company in July 2013.

Oliver Lightowlers, Chief Financial Officer

Oliver was appointed as Chief Financial Officer in October 2013, having previously been Chief Financial Officer of Ensus Limited, a UK producer of bioethanol and high protein animal feed. Ensus was acquired by CropEnergies AG from the Carlyle Group in July 2013. He qualified as a Chartered Accountant with Coopers & Lybrand and is a graduate of UMIST (Management Sciences). Before Ensus, Oliver was Group Finance Director of Spice plc, a provider of outsourced support services, principally to the utility sector, which listed on AIM in 2004 and moved to the Official List in 2008. Spice was acquired by private equity firm Cinven in 2010 for an enterprise value of £350 million.

Professor Karl Coleman, Chief Technical Director

Karl is a Professor of Inorganic Chemistry at Durham University, having previously been in the chemistry departments at the University of Oxford and the Université de Strasbourg. Karl achieved a PhD in Chemistry at the University of Leicester in 1996 and is a Chartered Chemist, Chartered Scientist and fellow of the Royal Society of Chemistry. His work since 2000 has focused on nanoscience and nanotechnology, particularly the chemistry of carbon nanotubes. He has been funded by the Engineering and Physical Sciences Research Council and the Royal Society and he has authored / co-authored over 75 publications in peer reviewed journals which have accumulated over 2,500 citations. His work has been recognised with numerous awards, including the international Royal Society of Chemistry Entrepreneur of the Year Award 2011 for his development of intellectual property around the production of graphene, and the Times Higher Education Research and Innovation Award 2012. He is the secretary of the Chemical Nanosciences and Nanotechnology subject group of the Royal Society of Chemistry. Karl established the Company in 2010.

Dr. Claudio Marinelli, Business Development Director

Claudio has extensive experience in the commercialisation of emerging technologies, including product development and marketing and business strategy. He was Open Innovation Director and later Business Management Director for Nokia Research between 2008 and 2012 where he was responsible for the strategic and operational oversight of the research and development collaboration portfolio of 13 Nokia sites across the globe. He also co-led Nokia's Impact and Tech Transfer work packages within the European Commission Future and Emerging Technologies' Graphene Flagship proposal, a ten year, €1 billion project with over 80 industrial and academic partners. Prior to joining Nokia, Claudio was Entrepreneur-in-Residence at the University of Cambridge for Advance Nanotech, a US seed investment fund specialising in academic spin-offs between 2006 and 2007, and from 2001 to 2002 Senior Device Engineer at Luxnet Corp, a California based start-up company supplying optoelectronic and telecommunication components. Other previous roles include Senior Research Associate in photonics at the Engineering Department of the University of Cambridge. Claudio holds a Laurea degree in Physics from the University of Trieste, Italy, a PhD in Electronic Engineering from the University of Bristol and an MBA from the Judge Business School at the University of Cambridge. Claudio joined the Company in July 2013, after consulting for 6-month on a part-time basis, and is responsible for customer engagement, sales and product and application development."

For more information, please contact:

IP Group plc	www.ipgroupplc.com
Alan Aubrey, Chief Executive Officer	[phone]
Liz Vaughan-Adams, Communications	[phone] / [phone] [e-mail]
FTI Consulting (for IP Group)
Ben  Atwell, John Dineen	[phone]

Notes for editors

About IP Group

IP Group is a leading UK intellectual property ("IP") commercialisation company, developing technology innovations primarily from its research intensive partner universities. The Group offers more than traditional venture capital, providing its companies with access to business building expertise, networks, recruitment and business support.

The Company's portfolio comprises holdings in over 70 companies including Oxford Nanopore Technologies, the DNA sequencing development company, Revolymer, best known for its removable chewing gum and Xeros, which has received many accolades for its revolutionary clothes washing techniques with a much reduced requirement for water.

The portfolio includes early stage to mature businesses and has exposure to five main sectors - Energy & Renewables, Medical Equipment & Supplies, Pharma & Biotech, IT & Communications and Chemicals & Materials. To date, fifteen of the portfolio companies IP Group has backed have listed on the AIM market of the London Stock Exchange and one on ISDX.

Founded in 2001, IP Group listed on AIM in October 2003 and moved to the Official List in June 2006.

For more information, please visit our website at www.ipgroupplc.com.

Ends

 

END

 

 

NRAMMMMGVDNGFZG