RE: Grant from Australia gov24 Jun 2024 22:03
The capital expenditure to develop prototypes and implement this technology into current production systems is expected to be minimal and therefore whilst there is still work to do to scale up the rGO supply and produce products, this JV is clearly an attractive low cost technology advancement option for CAP-XX. We maintain our Buy recommendation and 13p DCF based valuation. Ionic Industries is an Australian company based in Melbourne that has been developing graphene materials in collaboration with Monash University in 2011. Ionic's collaboration with Monash has resulted in six government grant programmes, numerous publications and global recognition, notably in the field of energy storage. Ionic will procure a licence for rGO in favour of the JV, which will have exclusive worldwide use of these materials for supercapacitors, batteries and other energy storage devices and Ionic will sell rGO products to the JV. CAP-XX will manufacture and sell supercapacitors and energy storage devices using rGO, on behalf of the JV, under the CAP-XX brand.