First Graphene Ltd (ASX:FGR, OTCQB:FGPHF, FRA:M11) last week announced the acquisition of Mito, a move managing director and CEO Michael Bell said would significantly expand the company’s commercial opportunities and strengthen its presence in the United States.
Speaking with Proactive, Bell said First Graphene has progressed beyond the development stage that continues to characterise much of the graphene sector, establishing a commercial customer base and scaled production capability.
Bell said the company currently serves around 35 recurring customers across a diverse range of applications, including cement, concrete, conductive inks, carbon fibre and textiles. He added that approximately 50 additional opportunities are progressing through the near-term pipeline.
According to Bell, First Graphene’s PureGRAPH® product range provides a competitive advantage by offering multiple graphene specifications that can be tailored to individual customer requirements. He said this broader product offering enables the company to address a wider range of industrial applications than producers with a narrower product suite.
The Mito acquisition represents a further expansion of that strategy. Bell said the transaction adds functionalised graphene and graphene oxide technologies, allowing First Graphene to target additional end markets and improve performance outcomes in customer applications.
He identified four principal benefits arising from the acquisition: access to functionalisation technology, the addition of existing customers and revenue streams, validation in commercial products and industrial applications, and an enhanced presence in the United States.
Bell noted that Mito has developed a pipeline comprising several hundred opportunities, including approximately 25 projects that are close to commercial execution. He said these opportunities are concentrated in sectors such as aerospace, defence and transportation, areas where demand for advanced materials continues to grow.
The US market appears to be a key catalyst. Bell said interest from defence-related organisations, including DARPA, demonstrates increasing attention toward graphene-enabled technologies. He suggested that combining Mito’s US footprint with First Graphene’s manufacturing and technical capabilities could accelerate commercial adoption.
Another catalyst lies within the company’s existing customer base. Bell pointed to a UK powder coatings customer that has spent several years developing graphene-enhanced anti-corrosion coatings capable of delivering two to three times the performance improvement of conventional alternatives. As customers move from development to commercial launch, Bell indicated revenue opportunities should increase.
Bell said, “We have about 35 clients that are on that reoccurring production schedule,” highlighting the company’s transition from technology development toward commercial growth.
With expanding customer numbers, a growing pipeline and the integration of Mito’s technology and market access, First Graphene appears focused on accelerating revenue generation across multiple industrial sectors.
Interview Highlights
- First Graphene is a commercial graphene producer with scaled manufacturing capacity of up to 100 tonnes.
- The company currently has approximately 35 recurring customers across 35 applications.
- Around 50 additional opportunities are progressing through the near-term pipeline.
- Recent customer wins include carbon fibre and textile applications.
- PureGRAPH® products are used to enhance materials such as concrete, coatings, plastics and conductive inks.
- The acquisition of Mito adds functionalised graphene technologies to the portfolio.
- Mito brings existing customers, revenue opportunities and a large commercial pipeline.
- Approximately 25 Mito opportunities are nearing execution.
- The acquisition significantly strengthens First Graphene’s position in the US market.
- The deal structure combines upfront cash with revenue-linked earnout payments.
- First Graphene received a purchase order shortly after completing the transaction.
- Commercialisation cycles are shortening as graphene adoption increases across industries.
- The company sees opportunities in defence, aerospace, transportation, construction and advanced manufacturing.
Proactive: Welcome back to Proactive Investors. I’m Kerry Stevenson. Joining me today is Michael Bell, Managing Director and CEO of First Graphene (ASX:FGR). Michael, great to see you. Before we discuss the latest news, can you give us an overview of First Graphene and the PureGRAPH® product?
Michael Bell: First Graphene is listed on the ASX, Frankfurt Stock Exchange and the US OTCQX. We have been focused on commercialising graphene and have successfully moved beyond laboratory development into commercial sales. We operate a scaled manufacturing facility capable of producing up to 100 tonnes of graphene and have an active revenue-generating customer base.
PureGRAPH is our graphene and graphene oxide product range. These nanomaterials are used as additives to improve the performance of products such as plastics, coatings and concrete.
Proactive: Are you currently generating revenue?
Michael Bell: Yes. We have approximately 35 customers on recurring production schedules across 35 different applications. These range from stronger concrete and road base materials to advanced conductive inks used in military applications.
We also have around 50 additional customers in our near-term pipeline covering approximately 20 new applications. In recent months we have added five new customers, including one in carbon fibre and four in textiles.
Proactive: What differentiates First Graphene from other graphene companies?
Michael Bell: Many companies either produce graphene or focus on a single application. We produce graphene and graphene oxide and work closely with customers to select, disperse and optimise graphene for their products.
Proactive: You recently announced the acquisition of Mito and described it as transformational. Why?
Michael Bell: Most graphene producers offer only one or two specifications. We offer a wider range through our PureGRAPH® products, allowing us to address more applications.
The Mito acquisition expands our capabilities through functionalised graphene and graphene oxide technologies. This broadens our product offering and increases the number of applications we can address.
The acquisition delivers four key benefits:
- Functionalisation technology.
- Existing customers and revenue opportunities.
- Validation in sports equipment and a large industrial pipeline.
- A stronger US market presence.
Mito has built a pipeline of several hundred opportunities, including around 25 that are close to commercial execution.
Proactive: How important is the US market?
Michael Bell: Very important. We have historically relied on distributors, but direct access to US aerospace, transportation and defence markets is strategically valuable. Interest from organisations such as DARPA highlights the opportunity.
Proactive: How did the relationship with Mito begin, and what are the deal terms?
Michael Bell: Mito approached us to use PureGRAPH® as a feedstock for its functionalised products. Through that collaboration we recognised the potential benefits.
The deal includes an upfront cash payment and performance-based earnouts over two years. Approximately one-third of the consideration is paid upfront, with the remainder linked to revenue milestones.
Proactive: Could those milestones be achieved quickly?
Michael Bell: Potentially. We executed the transaction yesterday and have already received a purchase order. Our initial focus is on customer engagement and understanding their requirements.
Proactive: Do you think the market fully understands First Graphene?
Michael Bell: One thing investors may underestimate is the depth of our pipeline. We have 35 active customers, around 50 near-term opportunities and Mito’s additional pipeline.
Commercialisation takes time because customers are engineering graphene into their products. For example, a UK powder coating customer spent three years developing a graphene-enhanced anti-corrosion coating that delivers two to three times the performance improvement of conventional alternatives.
The pipeline is progressing, revenue is growing and validation periods are becoming shorter as more applications are proven.
Proactive: Any final thoughts?
Michael Bell: Graphene adoption is accelerating. We have moved from proving the science to commercial discussions. In cement and concrete alone we have produced 20,000 tonnes of graphene-enhanced cement, and customers are now actively evaluating commercial use in products such as concrete roof tiles.
Proactive: Michael Bell, Managing Director and CEO of First Graphene, thanks for joining us.
Michael Bell: Thank you.