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Hi Pokerchips , Yes, agree the IP is the golden nugget, without this no buyer would be interested.
Other important factors are scalability of all products and memberships to Graphene Council, Nanotechnology Industries Association (NIA) & ECHA, the European Chemical Agency.
This demonstrates that various bodies accept the technology and AGM into the important gRphene arena.
The contracts that are being build up and partnerships could also benefit any deal massively as this shows that the products are wanted
One thing to note with AGM is that the company only leasing space at the Wilton Centre, it is a privately owned business and science park with office laboratory and pilot plant accommodation. It owns no office premises or even a manufacturing plant this is to keep all costs down to allow an easy sale of the company.
Also the company has no debt and cash in the bank.
Only need to TUPE over the experienced employees that will help future business and release all deadwood management ie non execute chairman and directors.
I have continued to buy these shares for over 2 years on the basis that the company will be sold and that is always a big uplift on the share price of the day. A telecom company I work for did exactly the same, have the right business model, no debt or big costs with premises and quick sale.
Dazpink
Thanks for sharing your thoughts..... I agree that a sale of the company would be the right path..or ...at least ..the joining two smaller companies together to make one medium sized bigger one for cost synergies and better sales potential of the two together ..
...but...the question with any American bidder is ...do they really have to offer what it is potentially worth.?...
AGM would not be in too much of a bargaining position....cost of sales are way,way higher than the sales themselves of course and they are still having to seek funding ..even if the next one wont be for 12-18 months ..that is all a known-known of course
The IP is the value...but how does a tiddler like this ensure they get the value of what it is worth and not be forced to accept what the buyer will walk away as seeing as a "bargain" ?
What we really need is for this IP to stay in British hands and have someone from the UK to pay more of what its worth is... or as I suggest the joining of two to make one ..better able to then compete and save costs ???
The increased share price over the past couple of days has been encouraging but nothing to do with any news, I see bigger things at play here.
My guess is that sooner rather than later we will see AGM sold to a large American company.
One such company that comes to my mind is PPG, revenue over $15 billion a year is the largest in the world and has made various acquisitions over the past few years, taking over small specialized companies who have done all the leg work in brining products to market.
This would be small change to them, Adrian and his team would receive generous payoffs all a winner.
CEO Adrian worked within Cytec Industrial Materials as Global Business Development Director and President of its process materials business in California and as President of Umeco Structural Materials Inc in Oklahoma and lives in the USA.
In my opinion he is focusing on America for a sale, he is committed to raising the profile of AGM and focus on selling the company.
Adrian and his team brought in Edison Investment Research to allow them to reach out to potential suitors.
He is due to present at the American Coatings Association later this month on the 29th
Adrian will deliver AGM’s latest technical presentation focusing on the formulation of graphene dispersions for water-based coatings and their anti-corrosion benefits.
All this is for one purpose to encourage potential buyers to see how far AGM have come in the 10 years since starting.
In early 2020, AGM began Streamlining manufacturing operations to focus on dispersion capabilities. Adrian has made sure this has happened and that all the pieces in the jigsaw are in place with distribution centres in place and sales team to deal with order as well as quality products backed up with hard facts/spec sheets.
The Graphene Council predicts that the most successful graphene manufacturers will pursue at least some level of vertical integration, offering not only graphene powder, but value-added intermediary products and, in some cases, fully integrated solutions. Those companies that invest in market development/sales efforts, particularly close customer engagement, co-development and education efforts, will convert interest into demand.
This is exactly what AGM have been doing over the past 12-24 months, they are not bothered about the current share price it is irrelevant, the bigger picture is all that is the target.
The business is fully funded with only a limited amount of shares on the market, a large percentage with Major investors such as Hargreaves Lansdown Stockbrokers, IP Group & Herald Investment Management as well as others.
All will cash in if a decent offer comes in this year.