BQ Online, November 2013
A Durham University spin-out has raised £11m on the AIM market of the London Stock Exchange.
Applied Graphene Materials, AGM, which makes specialty graphene materials, announced it was floating for the first time on AIM from 8am yesterday, having raised the £11m through the placing of 7,096,775 shares at 155 pence per share.
Based on the placing price, the market capitalisation of AGM, which has developed a proprietary process for the manufacture of high purity graphene nanoplatelets, was about £26.2m.
Chief executive Jon Mabbitt said: “This funding will allow us to begin the next phase of development and to strengthen relationships with our partners. Applied Graphene Materials is now well positioned to meet the growing global appetite for graphene as a wonder material of the 21st century.”
AGM was founded by Professor Karl Coleman in 2010 with its operations and processes based on technology that he initially developed at Durham University. The group has developed a proprietary bottom-up process for the production of high purity graphene nanoplatelets and owns the intellectual property and know-how behind this process. The group is based on the Wilton Site on Teesside.
The Finance for Business North East Technology Fund, NETF, managed by IP Group and the Finance for Business North East Proof of Concept Fund, managed by Northstar Ventures hold 14.5% and 10.4% of AGM’s share capital respectively, valued at £3.78m and £2.73m. NETF and the POC Fund committed £480,000 and £350,000 to the placing respectively. In addition, IP Group directly holds 20.4% of AGM’s share capital and committed £2m to the placing.
Dr Stephen Price, investment manager at Northstar Ventures, said: “Northstar Ventures has supported Applied Graphene Materials right from start-up to this significant milestone in its development. We quickly recognised the company’s huge potential and are delighted that this successful fundraising provides it with the platform to grow a very significant technology business in the North East.”
Andrew Mitchell, chief executive of North East Finance, said: “Karl Coleman and his team have done an outstanding job taking AGM from its spin-out and £100,000 proof of concept funding to an £11m fundraising and listing on Aim in only three years. We are delighted that two of North East Finance’s funds have provided investment and advice to help make this happen, and believe AGM is an excellent example of how venture capital investment can help ambitious businesses grow, creating new opportunities and jobs in the region.”