Versarien PLC (AIM:VRS, OTC:VRSRF) updated investors on its proposed joint venture and strategic investment, which is facing legal and regulatory hurdles.
The company, in a statement on Thursday, said a UK government determination prevents the prospective UK joint venture company with Anhui Boundary Innovative Materials Technology from acquiring or using Versarien’s assets.
The determination is aimed at protecting know‑how and intellectual property linked to graphene with dual‑use applications, it added
"The purpose of any joint venture with BIMT will [now] involve the import of BIMT's graphene, carbon nanotubes and silicon-carbon anode materials to the UK for sale, with a particular focus on electric vehicle and other battery technologies, technical support and research and development of new nanomaterial enhanced composite products for the automotive sector," the company said.
Versarien told investors there is no certainty that a joint venture agreement will be concluded, and no certainty that the strategic investment will be completed.
Besides the UK regulatory issue, the investment also remains subject to Chinese Outbound Direct Investment clearance.