Versarien PLC (AIM:VRS, OTC:VRSRF) has announced a five-year licensing deal with Brazilian-headquartered multinational business Montana.
This will see Montana granted use of Versarien’s Graphinks branded goods, such as dispersions and formulas, for its own products.
“The agreements with Montana are in line with Versarien's strategy to be a manufacturing-light business in the UK and licence our patents, know-how and other intellectual property to key partners,” chief executive Stephen Hodge said.
“We are very pleased to be partnering with Montana, a leading business in its markets in South America, and look forward to collaborating closely with them as they bring products enhanced by Versarien's technology to the market.”
Montana produces and sells paints, wood preservatives and finishing products across South America.
For the use of IP and expertise, Montana will pay Versarien £50,000 initially in March, followed by a further £25,000 when production starts.
Montana will also transfer 5% of total sale revenues earned from products using Versarien’s intellectual property, with a minimum royalty being set at £25,000 annually.
“The agreements with Versarien give Montana the opportunity to capitalise on the growing markets for graphene in Brazil, with the intention to utilise graphene in application areas such as paints, coatings and lubricants,” Montana boss Andreas von Salis said.