LONDON (Alliance News) - Haydale Graphene Industries PLC Wednesday said it has formed a new partnership to develop nano-material products using its technical processes which will generate a "significant proportion" of the company's overall revenue this year.
Haydale has signed the collaboration agreement with Graphit Kropfmuhl GmbH, part of AMG Advanced Metallurgical Group NV, and an affiliate of Alterna Capital Partners LLC. The trio will aim to develop nano-materials using Haydale's HDPlas functionalisation process and graphitic feedstock material primarily from the GK mine in Sri Lanka owned by AMG.
Haydale will initially supply a research and development reactor and a larger capacity reactor to the mine. The smaller reactor is a HT60 whilst the larger one is a HT200, capable of processing considerably more material from the mine than the smaller research reactor, it said.
"The initial contract value for the supply of the reactors is payable to Haydale on the normal machine supply basis. Subject to reaching the agreed milestones, the majority of the revenue is scheduled to be received in the current financial year and is expected to constitute a significant proportion of the group's revenues for the year ended 30 June 2016," said the company.
Haydale said it will work with the partners on other projects and have also agreed to work together on new products that have already been developed by Haydale. The intellectual property of any products borne out of the partenrships will belong to whichever company or companies develop it, but cross-licenses will be used to allow all the parties to sell any products that are developed.
Under the agreement, Haydale will grant a non-exclusive licence for the use of its patented process and, on the sale of the collaboration products will receive a royalty income based on the net revenue received, the rate and quantum of which is likely to depend on the market size and product pricing.
The reactors are expected to be delivered to a specially built GK facility in Hauzenberg, Germany by June 2016. Haydale will undertake site commissioning and provide ongoing maintenance, supply of spare parts and full technical assistance to support the operation of the reactors.
Haydale shares were up 2.6% to 175.0 pence per share on Wednesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Haydale (HAYD)