Mason Graphite Inc (TSX-V:LLG, OTCQX:MGPHF). has completed its acquisition of strategic assets related to a patented graphene processing technology from the UK specialty chemical company Thomas Swan & Co Limited.
The acquisition was made through a joint venture company Black Swan Graphene Inc, a special purpose subsidiary launched by Mason Graphite. The deal closed with final TSX Venture Exchange acceptance.
On closing of the joint-venture transaction, Thomas Swan received £3 million and shares representing 33.33% of Black Swan Graphene’s issued and outstanding capital.
READ: Mason Graphite acquires graphene processing technology and forms joint venture with Thomas Swan
Mason Graphite has also invested about C$2.5 million in Black Swan Graphene for working capital purposes and holds a 66.67% equity interest in Black Swan Graphene.
In connection with the transaction, Mason Graphite said Black Swan Graphene has acquired a license from Trinity College Dublin for the production of exfoliated defect-free, non-oxidized 2-D materials in large quantities (TCD License), which was previously held by Thomas Swan.
In addition, Black Swan Graphene and Thomas Swan have entered into a License Agreement and a Sub-License Agreement, pursuant to which Black Swan Graphene has granted Thomas Swan a license to graphene processing technology for production of up to 1,000 tonnes per year and Black Swan Graphene has sub-licensed the TCD License to Thomas Swan, respectively.
In addition to the assets related to the graphene processing technology and associated know-how sold to Black Swan Graphene, Mason Graphite said Thomas Swan will also contribute its exclusive production and commercialization expertise while providing access to subject matter expertise, such as access to personnel and technical support, and deliverables from its operation in Northern England.
Black Swan Graphene aims to establish a large-scale commercial production facility in Québec, Canada, to leverage the province’s competitive and green hydroelectricity, as well as the proximity of Mason Graphite’s planned production sites. These factors are key and will accelerate the production and commercialization of the graphene developed by Thomas Swan by integrating the supply chain and lowering production costs.
Meanwhile, Mason Graphite said the board of Black Swan Graphene was reconstituted to comprise two nominees from Thomas Swan and four nominees from Mason Graphite.
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