First Graphene releases sales and marketing update; stock soars on ASX

First Graphene Limited (ASX: FGR), is based out of Nedlands, Australia with the main manufacturing base in Henderson, near Perth.  It is primarily engaged in the development and production of high technology graphene materials in Sri Lanka.

Recently, on March 19th, the company released its sales and marketing update which affirms that it is one of the leaders in the graphene industry with an established supply of fully operational plant with a capacity of 100 tonnes/year, secure raw material supplies as well as a robust process. Besides, it also has low capital costs and short build time along with low manufacturing costs delivering high margins.

The company is also gaining commercial traction in multiple product verticals and driving adoption via developing strong partnerships including Tier 1 partner at Graphene Centre (GEIC), Manchester, and University of Manchester, to which it supplies raw materials. In January 2019, the Group entered into a lease agreement with the University of Manchester for facilities at the GEIC. The lease is for three years and has an annual commitment of GBP 200,000 to be paid in quarterly instalments.

According to the company’s forecast, the materials market is expected to reach over $ 300 million by 2022 on account of Graphene demand and that will in turn enable downstream $billion markets in construction, industrial products, transportation, electronics and energy storage. So far, its flagship product is the PureGRAPH™ powdered graphene range, targeting markets for polymers, elastomers, composites, advanced coatings for heat exchange with a tremendous volume potential and minimal regulatory hurdles & product liability issues.

Recently, First Graphene signed a mandate with Foster Stockbroking, Australia-based graphene supplier, with the objective of introducing the Company to institutional investors and the provision of the equity market and corporate advice. Having confirmed the high quality of PureGRAPH™ over the course of three-years while establishing a robust manufacturing and delivery platform, and its capacity to meet industrial sale orders, FGR expects strong growth of its sales book during 2019.

The PureGRAPH™ range was first released in September 2018, accompanied by a detailed Product Information Sheet. Following which, the first Receipt of a commercial order for 2,000kg of PureGRAPH™ products was received from the industrial partner, newGen Group. A roadblock to the adoption of this innovative material has been securing reliable supply. Although, the company is attending to this challenge head-on.

The company also released its financial results for the half year ended December 31st, 2018, posting the net operating loss after tax at $ 2,169,793, which is up on $ 2,948,419, recorded in the prior corresponding period ended December 31st, 2017. During the period, there were sizeable net cash outflows of around $ 2.48 million from operating activities and $ 469.3K from investing activities. On the contrary, the financing activities contributed to net cash inflows of $ 1,297,032 on account of the receipt of proceeds from the placement of shares and exercise of options. The net cash and cash equivalents amounted to $ 3.21 million.

FGR has a market cap of AUD 74.46 million. FGR stock closed at AUD 0.180, up 12.5% at the end of trading on March 19th, 2019. Today, on 20th March, the stock is trading at AUD0.185, up 2.78% (As at 2:55 PM AEST).


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

Join Our Discussion

Start discussion with value Investors for ASX Stock Market Investment and Opinion.


6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report