Last close As at 05/08/2026
—
— 0.00 (0.00%)
Market capitalisation
—
Research: TMT
Applied Graphene Materials (AGM) has raised c £6.0m (gross) through a placing, subscription and PrimaryBid offer at 41p/share. Management estimates that the funds raised extend the company’s cash runway from October 2021 well into calendar 2023, enabling it to convert the current opportunity pipeline into meaningful annual revenues during the period.
Written by
Applied Graphene Materials |
Cash runway extended well into calendar 2023
|
Technology |
QuickView
28 January 2021 |
Share price graph
Share details
Business description
Bull
Bear
Analysts
|
|||||||||||||||||||||||||
Applied Graphene Materials (AGM) has raised c £6.0m (gross) through a placing, subscription and PrimaryBid offer at 41p/share. Management estimates that the funds raised extend the company’s cash runway from October 2021 well into calendar 2023, enabling it to convert the current opportunity pipeline into meaningful annual revenues during the period.
Oversubscribed placing, subscription and offer
At the end of July 2020, net cash (there is no debt except for minimal IFRS 16 lease liabilities) totalled £3.7m. The recent placing, subscription and PrimaryBid offer respectively raised £5.3m, £0.2m and £0.5m (gross). The placing is being conducted in two tranches. The second, which is of c £4.3m, is subject to shareholder approval at a general meeting to be held on 12 February. The cash raised will be used primarily for working capital as the company builds up revenues. The company had 119 active engagements at the end of November 2020. Management estimates that this opportunity pipeline, if fully realised, represents annualised revenues of £7.6m, or around £3m if a success-probability factor is applied.
Growing opportunity
Revenue growth is driven by innovative businesses incorporating AGM’s graphene-based dispersions in new products, which they are developing with enhanced properties. For example, one of AGM’s existing customers, Halo Autocare, has recently launched a graphene-enhanced wax for alloy wheels that can protect wheels for four to six months. Encouragingly, this is Halo's second product to incorporate AGM's Genable graphene dispersion technology. AGM continues to expand its distribution network, most recently with the appointment of chemicals distributor Manho Polymers in South Korea, enabling the company to access the fourth largest coatings market in Asia. The enlargement of the distribution network means that the number of people selling AGM’s products has trebled over the last year to around 60. In a significant development for the graphene industry, EU regulator ECHA has approved the use of graphene powder at larger volumes of 1–10 tonnes a year. The approval allays concerns that potential customers considering large-scale deployments of products containing graphene may have regarding the availability of graphene in sufficient volume.
Valuation: Still too early to form a view
AGM has only recently started to commercialise its products and the sector generally is at an early stage of evolution, precluding a valuation.
|
Consensus estimates
Source: Company data, Refinitiv |
Applied Graphene Materials is a research client of Edison Investment Research Limited
|
||||||||||||
|
||||||||||||
Research: Investment Companies
Templeton Emerging Markets Investment Trust (TEMIT) has the benefit of two highly experienced managers, Singapore-based Chetan Sehgal and Andrew Ness, who is based in Edinburgh. They can draw on the significant resources of a team of more than 80 investment professionals working in 14 countries around the globe. The managers successfully navigated choppy waters during 2020, a period characterised by bouts of significant stock market volatility due to the global pandemic. TEMIT’s NAV has outperformed the MSCI Emerging Markets Index over the last one, three five and 10 years. Sehgal and Ness are constructive on the outlook for emerging market equities based on improving company fundamentals and relatively attractive valuations.