PERTH: First Graphene Ltd. announced Thursday it has entered a binding agreement to acquire all assets, product lines and intellectual property of MITO Material Solutions Inc., a U.S.-based advanced materials company, in a deal valued at AU$850,000.
The acquisition gives First Graphene (ASX: FGR) an immediate operational and commercial platform in the United States, including manufacturing capabilities, established customer relationships and a portfolio of functionalized graphene technologies, an announcement said.
The move is aimed at accelerating the Australian company’s entry into the U.S. defense and aerospace sectors, where graphene-enhanced materials are increasingly sought for lightweight composites, thermal management and electromagnetic shielding.
“This acquisition represents a transformational push into the USA market for First Graphene,” Managing Director and CEO Michael Bell said in a statement. “Combined with our existing PureGRAPH technologies, this acquisition creates one of the broadest and most advanced graphene product portfolios globally.”
Under the agreement, First Graphene will pay AU$275,000 in cash and up to AU$575,000 in stock tied to revenue milestones over 24 months. The share consideration requires shareholder approval. The seller, MITO Material Solutions Inc., will receive shares on a pro-rata basis if the acquired business generates between US$1 and US$200,000 in its first year, and up to US$500,000 in the second year.
MITO’s product lines — marketed under the names E-GO, LIGRA, OMEGA and DELTA — include thermoset and thermoplastic composites, coatings, resins and nanomaterial additives. The company has already placed products with U.S. brands including Parlor Skis, Folsom Custom Skis and St. Croix Rods.
First Graphene said the acquisition brings eight years of research and development and a pipeline of more than 25 clients in late-stage testing. The combined technology portfolio positions the company to pursue defense-related opportunities tied to recent U.S. Department of Defense and DARPA initiatives focused on lightweight graphene composites and next-generation survivability materials.
The U.S. Defense Department’s budget reached US$1.18 trillion, while the U.S. sports market is valued at more than US$1 trillion, according to figures cited by the company.
First Graphene, based in Perth, Australia, with a research facility in the United Kingdom, said settlement is targeted within five days, subject to standard conditions. The company’s shares trade on the Australian Securities Exchange, the Frankfurt Stock Exchange and the U.S. over-the-counter market.
