Mason Graphite shares took off after it reported that Black Swan Graphene (TSX-V:SWAN) announced it has entered into a strategic partnership with Nationwide Engineering Research and Development (NERD) to accelerate the adoption of graphene-enhanced concrete.
Mason currently owns approximately 41% of the total shares issued and outstanding of Black Swan, a company focused on the large-scale production and commercialization of patented high-performance and low-cost graphene products.
Mason shares had added 11.8% at C$0.29 in the early afternoon on Monday.
A spin-out research and development firm from UK construction group Nationwide Engineering, NERD has developed a graphene-enhanced admixture for concrete (Concretene) which can significantly increase the strength of the material in mix designs, allowing for cement reduction and lowering of the carbon footprint on construction projects, according to Black Swan.
At the core of the partnership between Black Swan and NERD is the completion of an equity swap where each company will own approximately 5% of the outstanding shares of the other and the execution of a supply agreement between the two companies under which NERD will be sourcing its graphene requirements from Black Swan, the company said.
Concurrently with the creation of the partnership between Black Swan and NERD, London-based multinational engineering consultancy Arup Group Limited is expected to enter into a partnership with NERD whereby is it expected to gain ownership of 4.2% of the outstanding shares of NERD, Black Swan said.
The company noted that the partnerships between Black Swan and NERD and between NERD and Arup are intended to enhance expertise and create an integrated supply chain aimed at accelerating the adoption of graphene-enhanced concrete globally.
Black Swan Graphene (TSX-V:SWAN) CEO Simon Marcotte said the partnerships is poised to have far-reaching implications for the global concrete industry.
“By leveraging the exceptional performance of the NERD process and Arup's expertise, reach and leadership, this integrated supply chain can provide a turnkey solution and revolutionize the concrete industry on a global scale,” Marcotte said.
“Considering that concrete is the second most utilized material on Earth, surpassed only by water, it is difficult to imagine a more exciting opportunity. I am very optimistic about the impact of this collaboration and its potential to catalyze sustainable and innovative practices in the industry.”
NERD CEO Rob Hibberd added: “We are delighted to formalize these partnerships with Black Swan and Arup as part of NERD and we look forward to combining our skillsets to deliver Concretene to the construction industry in our drive to reduce global CO2 emissions.”
Equity swap details
Black Swan said under the equity swap, NERD will issue to the company 7,177 seed preferred shares, ranking senior to all other shares in the share capital of NERD, at a deemed price per share of £220 for an aggregate deemed subscription price of approximately £1.58 million.
This represents a 5% ownership stake in NERD on a post-money, fully diluted basis.
Black Swan will pay for the NERD shares by way of issuance of 16,371,504 common shares, representing a 5% ownership stake in Black Swan on a fully diluted basis, the company said.
Paradigm Capital is acting as an advisor for Black Swan for the transaction. While no cash consideration is payable to Paradigm Capital, upon closing of the transaction, Black Swan said it will grant Paradigm an aggregate of 1.60 millio compensation warrants with an exercise price of $0.15 which will be exercisable for a period of three years from the closing date, but not earlier than 18 months following the closing date.
Black Swan Graphene (TSX-V:SWAN) is focused on the large-scale production and commercialization of patented high-performance and low-cost graphene products aimed at several industrial sectors, including concrete, polymers, Li-ion batteries, and others, which are expected to require large volumes of graphene.
Mason Graphite is a Canadian corporation focused on the production and transformation of natural graphite. The company's strategy includes the development of value-added products, notably for green technologies like transport electrification.
-- Updated with share price --
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