LONDON, UK: Gelion Plc (AIM: GELN), the Anglo-Australian battery innovator, has conditionally agreed to acquire the entire issued share capital of OXLiD for an aggregate consideration of up to approximately £4.2 million.

OXLiD is a UK based lithium-sulfur (LiS) battery technology developer, dedicated to the development and commercialisation of LiS batteries for electrified transportation and sustainable energy storage in the electric aviation (drones and eVTOL) and electric vehicle markets.

In addition, the Company announces a proposed equity Fundraising of up to approximately £4.5 million (before expenses) by way of the issue of up to 18,601,789 New Shares.

Gelion also intends to offer retail shareholders the opportunity to participate in the fundraising through the retail offer.

Cavendish is acting as nominated adviser, sole broker and sole bookrunner in connection with the placing.

The OXLiD team consists of five highly experienced scientists with significant battery research experience including doctorate degrees from top UK universities. OXLiD has plans to expand the team further in the coming months to further accelerate progress.

Having five patent applications, an exclusive licence and an exclusive option over a further licence, OXLiD enjoys entrenched relationships with blue chip academic institutions (Oxford, Nottingham, UCL, Southampton) and access to the UK’s LiSTAR and Faraday Institutions supported technological research network.

The Faraday Institution is the UK’s premier research institute aiming to advance battery science and technology and is running a Lithium Sulfur Technology Accelerator (LiSTAR) program specifically focused on LiS battery technology.

OXLiD has undrawn approved grant funding of approximately £0.8 million which will be available to the Company post-Acquisition as well as a relationship with Sanyo Trading, from which revenue was generated in FY22, which Gelion wishes to explore further.

The acquisition will enable Gelion to establish a UK research and development hub providing closer proximity to potential European customers and strategic partners, with improved access to a wider pool of leading LiS focused universities and research institutions.

John Wood, CEO of Gelion, commented: “The acquisition of OXLiD will significantly accelerate the development of Gelion’s LiS technology. Adrien Amigues and his team bring experience, progress and IP in many areas but importantly leap us forward in two very specific areas of our focus, namely advanced sulfur cathode material formulation and anode protection.

This development will directly support us in our efforts to advance key partnership objectives and we are thrilled to welcome them into team Gelion.

“Having a UK footprint also gives us direct reach into the UK and European markets, directly expanding our available paths to commercialisation and towards developing value for our shareholders.

\This transaction comes at an exciting time for Gelion as the need to make global transport, energy consumption and storage more sustainable is more prevalent than ever. LiS technology, once mastered and commercialised, has the potential to make a significant contribution with its high energy density, relative safety, low cost, and the abundance of sulfur.

We believe the expanded Gelion/OXLiD technology portfolio and capabilities will resonate very strongly with our potential strategic partners providing excitement about the Group’s future as we develop the technology toward creating and establishing our target product set and supply chain positioning.

“OXLiD’s entrenched relationships with blue chip academic institutions across the UK evidences the quality of the business and people behind it, and we are confident that this acquisition provides strong enhancement of the path to market for Gelion’s LiS technology.”

Dr Adrien Amigues, Founder and CEO of OXLiD, said: “By joining Gelion, we will be capable of developing and commericalising LiS battery technology for the mass markets at a faster rate than previously possible. Together, we will develop a set of products that are more energy dense, cheaper to produce, made with less resource-intensive raw materials and are safer to operate than standard Lithium-ion cells.”

“We are very excited about joining the Company and look forward to benefiting from Gelion’s expertise and strong IP as the Group continues to develop at a rapid pace.”