Game on as Mason Graphite enters the Graphene Race
Not only is Mason Graphite Inc. (“Mason Graphite”) (TSXV: LLG | OTCQX: MGPHF) confirming that Focus Graphite Inc. (Grafoid) and Lomika Metals Inc. (Graphene Laboratories) have the right idea: they are joining the race.
Mason Graphite announced early this morning that it has signed a letter agreement with Group NanoXplore Inc. (“NanoXplore”), a graphene production company, to purchase up to 40% of the issued and outstanding shares at $0.80 — a +12.7% premium to Friday’s closing price of $0.71. Management of Forbes & Manhattan and Mason Graphite fully subscribed to the $700k private placement that will allow them to acquire 875,000 common shares of NanoXplore.
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InvestorIntel editor Hongpo Shen anticipated such announcements occurring having just published that the race towards graphene production is real, on track and moving faster than anyone expected just last week with: China’s Graphene industry set to skyrocket in 2014. While undoubtedly not intentional, Mason Graphite is indeed making a case that if you want to be in graphite, you better grab a graphene dance partner first.
NanoXplore is similar to other graphene players in that they are being touted as a producer of large scale graphene, and like other graphene players: their website tells us nothing. The intrigue and science around graphene continues to escalate, and for those new to understanding graphene, start here with a background piece written by Dr. Luc Duchesne on how the graphene patent escalation is reflective of the Silicon Valley days and foretells of imminent graphene expansion.
In the news release today Benoît Gascon, President and CEO of Mason Graphite states: “This mutually beneficial alliance will connect our expert teams and combine potential low cost flake graphite production from our Lac Guéret project and potential low cost graphene production from NanoXplore’s process. Through this strategic alliance, we will eventually become NanoXplore’s exclusive supplier of natural flake graphite and we will actively be involved in all facets of their sales and marketing activities.”
NanoXplore was founded in 2011 by Soroush Nazarpour, B.Sc, M. Sc, Ph.D., a published author of two books and a number of scientific journals; whose Ph. D. is in Nanoscience. Let me be frank, I have been dealing with this ‘scary smart club’ for the last several years and I have yet to understand what they are saying. In part, because the value of the intellectual property is perceived to be so high that they might as well be speaking in tongues. My favorite quote to support my theory, comes from a sector leader at a graphene event in NYC recently where he said to a starry eyed crowd: “Graphene is too good for mankind.”
With this kind of following, I anticipate super metal groupies – and star stock performance for the leaders. The response by these tech geeks should breed a whole new kind of shareholder – a kind we look forward to catering to here at InvestorIntel. Why? Because anyone that begins to comprehend the impact of graphene technology on our planet will undoubtedly buy and hold for life.
Here’s what I do understand, the new release states that the “Proposed Transaction would be completed in two tranches, with Mason Graphite purchasing a 20% interest in NanoXplore on or before January 31, 2014 in consideration for $350,000 (the “First Tranche”), and having the right to purchase an additional 20% interest in NanoXplore on or before July 31, 2014 (the “Second Tranche”) for an additional $350,000 if Mason Graphite is satisfied with the business, operations and progress of NanoXplore over the six-month period following the completion of the first tranche.”
Barring geek meltdowns from graphene management, I anticipate this deal will close successfully and undoubtedly with a name like NanoXplore – they are destined for a Nasdaq listing.
An accomplished entrepreneur and corporate finance professional, Tracy Weslosky is the CEO for InvestorIntel Corp. and the VP of Business Development for Bellotti Capital Partners ... <Read more about Tracy Weslosky>