- First Graphene (FGR) has entered into a memorandum of understanding (MOU) with Brazil’s largest steel producer, Gerdau
- The MOU is currently non-binding and allows for the two companies to negotiate terms towards a binding agreement
- Under a proposed binding commercial agreement, Gerdau will act as an exclusive distributor for First Graphene’s products in the Americas
- Gerdau will also have the right to develop applications for those products in mutually agreed economic sectors and business areas
- First Graphene closed 10.42 per cent higher to trade at 26 cents per share
First Graphene (FGR) has entered into a memorandum of understanding (MOU) with Brazil’s largest steel producer, Gerdau.
The MOU is currently non-binding, and allows for the two companies to negotiate terms towards a binding agreement, which would establish an initial commercial agreement for distribution and collaboration.
Under a binding agreement, Gerdau would act as the exclusive distributor for First Graphene’s range of PureGRAPH graphene products in the Americas. The steel producer will also have the right to develop applications for those products in mutually agreed economic sectors and business areas.
The distribution territories covered by the agreement will include South American countries like Gerdau’s home of Brazil and potentially the United States as well.
If Gerdau achieves certain predetermined sales and investment targets, its initial commercial agreement with First Graphene may also cover rules for a potential investment and share acquisition.
First Graphene’s CEO, Mike Bell, said the association with Gerdau is a strong indication of international attention garnered by the company.
“We are pleased Gerdau recognises the enormous commercialisation opportunities graphene offers industry with the creation of a dedicated graphene division,” he added.
“The association with Gerdau, a world leader in the long steel and specialty steel markets with a very strong position in the Americas, will undoubtedly accelerate the use of graphene across a wide range of applications.”
First Graphene closed 10.42 per cent higher to trade at 26 cents per share.