Haydale Regulatory News (HAYD)

Haydale Graphene Industries plc ("Haydale" or the "Company") First day of dealings on AIM Haydale Graphene Industries plc, the Company focused on enabling technology forthe commercialisation of graphene, is pleased to announce the admission todayof its ordinary shares to trading on the AIM Market of the London StockExchange and the commencement of dealings in its ordinary shares under theticker HAYD. The Company has raised £6,600,008 before expenses through a placing of3,142,861 new ordinary shares at a placing price of 210p per share with a broadvariety of institutional and private client fund managers. On admission, theCompany has 11,247,823 ordinary shares in issue, giving the Company a marketcapitalisation of £23,620,428. The Company will be using the proceeds of the IPO to; expand and broaden theengineering, production, technical and business development teams to supportproduct development; increase the capacity of graphenes and nanomaterials thegroup is able to functionalise; increase sales and marketing functions; furtherenhancement and new development of intellectual property and know-how withexternal partners and for general working capital requirements. Cairn Financial Advisers and Hume Capital are the Company's Nominated Adviserand Broker respectively. Overview of the Group Haydale has developed a proprietary scalable plasma process to functionalisegraphenes and other nano materials. Functionalisation is an essential componentin the commercialisation of graphenes and graphene nano platelets. Haydaleplans to commercialise its functionalisation process by providing value addedsolutions to both raw material producers and industrial corporations. Graphene is a recently discovered material which, as a single carbon latticelayer, has outstanding thermal, mechanical and electrical properties. Grapheneis stated to have potential applications in significant markets such as batteryand energy storage, electronic devices including bio-medical sensors,conductive inks and films plus polymer composite fillers and resins. Grapheneis formed from carbon atoms and being inherently inert, is difficult to mixwith another material. Industry's challenge is to sympathetically functionalisethe graphene sheets and other nanomaterials without damaging them in order thatthey interact with the target material to either enhance dispersion or bondingor both, and to be able to do this on a commercial scale. Haydale believes ithas a solution to this problem. Subsequent to acquiring Haydale Limited in May 2010 the Company continued todevelop a proprietary solution to this problem by taking both mined organicfine powdered graphite and synthetically produced graphenes and treating withthe plasma process to surface functionalise the material. The process iseffective in enabling dispersion of nanomaterials and particularly performanceenhancing graphenes, providing a cost effective solution for the user. InFebruary 2014, the National Physical Laboratory ("NPL") witnessed andpositively reported on the process. The Company's proprietary inventions areembodied in its manufacturing machines and the processes performed in them. The Directors believe that its proprietary process provides Haydale with anopportunity of becoming a key player in the development and commercialisationof graphenes, specifically graphene nanoplatelets and other nanomaterials. Ray Gibbs, Chief Executive Officerof Haydale, commented: "At Haydale we believe the properties and potential of graphene will berealised, and that whatever form the supply is,dispersing it properly to make areal improvement is the key to the successful commercialisation of graphenes. Our successful fundraising and IPO will contribute significantly to thedevelopment and progression of our enabling, proprietary plasma technology,which is capable of being tailored to produce a wide range of surfacemodifications; substantially improving compatibility between the nanomaterialsand any matrix or binder material and so unlocking the potential that graphenepresents." - Ends - For further information please contact: Haydale Graphene Industries plc 01269 842 946 John Knowles, Chairman Ray Gibbs, Chief Executive Officer Cairn Financial Advisers LLP (Nomad) 0207 148 7900 Tony Rawlinson Paul Trendell Hume Capital Securities (Broker) 020 3693 1470 Guy Peters David Lawman Hermes Financial PR Trevor Phillips 07889 153 628 Chris Steele 07979 604 687 Background information on graphene A graphene sheet is approximately 1 atom thick. Put into perspective, 3 milliongraphene sheets stacked together would be 1mm high. Graphene is the strongest,thinnest, and one of the highest conducting materials known to science.Graphene is tougher than diamond, yet light and elastic. It enables electronsto flow rapidly as compared to silicon, is a transparent conductor, andcombines both electrical and optical capabilities. It enables development ofhigh speed consumer electronics, information processing solutions, biosensors,super capacitors that could be used in place of batteries, mechanical parts andcomposites for cars and aircraft. Dispersed into yarns and fibres it couldbecome an anti-static, fire retardant, fully recyclable carpet, or potentiallya Kevlar replacement. The distinctive electronic, thermal and mechanical properties of graphene makeit a potentially disruptive technology across a raft of industries. Current Trading To date, revenues have included web based sales and research projects. Inaddition, the Group has received and continues to receive research developmentgrants. The Group has taken advantage of commercial revenue opportunities asthey have arisen. In the period under review, the Company has raised gross funding ofapproximately £3.8 million, of which approximately £1.2 million was raised inthe 6 months ended 31 December 2013. In January 2014, the Company raisedapproximately a further £0.6 million (gross) of pre - Admission equity finance. Year ended Year ended Year ended 6 months ended 30 June 2011 30 June 2012 30 June 2013 31 December 2013 £ £ £ £ Revenue and other 18,438 133,171 145,742 58,104income Operating loss (656,797) (642,029) (1,056,337) (580,116) Loss for the year / (582,380) (608,532) (992,380) (568,239)period Cash & Bank balances 16,828 149,313 54,464 758,322 Net Assets 627,644 1,185,903 992,125 1,588,241 History The Group was formed in April 2010 to acquire Haydale Limited, a research anddevelopment business, which was established in 2003 specialising in the noveluse of plasma in the treatment of nanoparticles, in particular graphene andCNT's. The Company is based in South Wales. Milestones Date Milestone May 2010 Haydale's present CEO, Ray Gibbs, joins. December 2010 Company filed priority date application for an enhanced plasma process incorporating novel use of metal balls. The Group had previously carried out extensive research work on carbon based structures and especially CNTs. The result of the work was Haydale's split plasma process, by which it is able to purify and surface engineer carbon based nanomaterials to meet the needs of a wide range of end users. February 2011 Haydale offers CNTs and GNPs produced from the plasma treatment of mined graphite powder, sampled and sold through a US based website (www.cheaptubesinc.com). Haydale reviewed its sales channels and the agreement was terminated by mutual consent in May 2013. November 2011 Initial scale-up proven by commissioning a new reactor (HD100). Haydale launches its HDPlasTM brand. April 2012 Moved into temporary facilities pending fit out of new purpose built factory and laboratory. December 2012 Commenced research into conductive GNP based ink. January 2013 Web based sales facility constructed to address the R&D market. May 2013 Company's purpose built nanomaterial handling and production facility in South Wales completed at a capital cost of £ 0.5million. June 2013 HDPlas™ graphene based ink officially launched at the Graphene Commercialisation and Applications Exhibition in London on 25 June 2013. Received Welsh Economic Growth Fund grant of £114,480. November 2013 Haydale announces that it had signed a distribution agreement with AMG Mining AG ("AMG Mining"). AMG Mining to act as exclusive distributor in Germany for Haydale's branded HDPlasTM GNPs. AMG Mining is a major and long established international supplier of graphite based products and is aiming to use Haydale's plasma functionalisation technology to extend its product range and add value to its raw materials. December 2013 Haydale lists its HDPlas™ range of materials for trade on INSCX™ exchange. INSCX™ is the world marketplace for organisations seeking nanomaterials, nanocommodities, objects and devices. Merchant member Fullerex has been appointed by Haydale as its agent, through which they will instruct trade on the market. January 2014 Haydale closes fundraising round with an additional £1.85million. ISO 9001 awarded. February 2014 Haydale agrees a non-exclusive distribution agreement with US based Graphene Laboratories ("GL") to sell its GNPs. The products will be sold through the GL owned internet site known as `Graphene Supermarket'. Purchase order raised with specialist plasma manufacturer Tantec A/S for the supply of a reactor for increased capacity and continuing development. A memorandum of understanding was signed with regard to future collaboration for global supply and maintenance contract for reactors. Structured the Board of Directors to meet AIM requirements and for the next phase of the Company's development. The National Physical Laboratory witnessed and positively reported on Haydale the process. March to date Company converts to public limited company.2014 New employees Dr. Martin Kemp and Dr. Chris Stirling recruited to boost the marketing and technical potential of Haydale. Marie Davis joined to take over Project management and all aspects of logistics and supply chain. Company establishes a technical advisory panel. Board of Directors John Knowles, Chairman (aged 71) BSc Eng (Hons) John Knowles has significant nanotechnology experience. He was until recentlychairman of NanoSight Limited (sold to Spectris plc) and currently is thechairman of the Nanotechnology KTN Advisory Board. He is a member of UKGovernment's Nanotechnology Strategy Forum. His 30 years' experience includes 2years as MD of a Morgan Crucible subsidiary and chairman/director of severalsuccessful technology companies- including Davin Group Ltd, Stratophase Ltd,Michelson Diagnostics Ltd. Tony Belisario, Deputy Chairman (aged 63) B Tech (Hons) Tony Belisario is a chartered engineer who has spent most of his working lifein management in manufacturing businesses using diverse technologies operatingin global markets. In addition, Tony he also managed businesses backed byprivate equity and has led an MBO. Currently, in addition to being part timedeputy chairman of HGI he serves on the Council of Brunel University. Ray Gibbs, CEO (aged 59) FCA Ray Gibbs is a Chartered Accountant, and former Deloitte audit and corporatefinance partner for 9 years. He has spent the last 18 years in industry as CFOor commercial director of high technology and fast moving consumer goodsbusinesses both in the quoted and private arenas with sales ranging from £500,000 to £500 million. He was a former CFO of Chemring Group Plc. Dr. Chris Spacie, CTO (aged 56) C.Eng, M.I.M.M.M Chris Spacie is a materials scientist and Chartered Engineer with over 30 yearsof experience in commercial R&D, process innovation, plant design andmanufacturing. He was formerly technical director of Morganite ElectricalCarbon Ltd. a division of Morgan Crucible Plc and is a primary inventor infields such as fuel cell materials, composites and ballistics. Matt Wood, Finance Director (aged 40) ACA BA (Hons) Matt Wood is an experienced professional having worked as a financial andnon-executive director with a variety of companies with a background in AIMlisted small-cap corporate finance. He will work part time until the businessneeds a full time finance director. He currently is part time finance directorfor Sula Iron and Gold plc and is non-executive director for Avarae GlobalCoins plc and Westminster Group plc. Graham Eves, NED (aged 68) MA Graham Eves joined GKN plc in 1967 where he spent 13 years operating acrossmultiple overseas jurisdictions including, for the last 5 years, setting up andrunning a special operation for GKN plc's head office in Switzerland. Hereturned to the UK in 1980 to work in venture capital and establish his owninternational business consultancy. His main activities covered advising arange of German, North American and Japanese automotive component/technologysuppliers and he co-founded and was chairman of an automotive technologycompany, Mechadyne (now part of Kolbenschmidt Pierburg AG). He was alsochairman of PCB manufacturer, Lyncolec Limited, chairman of a special securitycompany and a director of 3PC Investment Trust. Graham is a Non-ExecutiveDirector of AB Dynamics and was directly involved in the AIM flotations of ABDynamics plc, Antonov plc and Transense Technologies plc. He was on the AIMadvisory committee of the London Stock Exchange for 6 years and has a Master ofArts degree in Modern and Medieval Languages from the University of Cambridge. Roger Humm, NED (aged 55) MBA BSc (Hons) FCA Roger Humm is a commercial and financial director with over 20 years inindustry with extensive understanding of technology businesses. Having heldpositions as a finance director and company secretary in public & privatesettings, he has accumulated knowledge of capital transactions coveringfunding, acquisitions, divestments, in- and out-licensing and spin outs. He iscurrently part time vice president of finance of AIM quoted Ixico plc. Roger Smith, NED (aged 61) BSc Physics Roger Smith is a senior vice president of Petrofac Plc where he manages a $50million turnover division. He has spent 35 years in the oil and gas industryand has set up and sold 2 successful engineering consulting companies.