Brisbane, Queensland, Australia--(Newsfile Corp. - November 14, 2024) - Graphene Manufacturing Group Ltd. (TSXV: GMG) ("GMG" or the "Company") is pleased to provide a business update on its working capital position and the implementation of cost reductions targets that were communicated on March 11, 2024.
Each year the Company submits a Research and Development (R&D) application to the Australian Taxation Office to recover 43.5% of eligible R&D expenditures under the Australian Government's Research and Development Tax Incentive scheme. On October 29, 2024, A$2.85m, the amount requested in this year's R&D application, was deposited in full into the Company's bank account. As at November 1, 2024, the Company's cash balance was A$5.56m, with no debt or loan facilities in place. The continued funding from AusIndustry's R&D Tax incentive scheme has played a vital role in supporting GMG's ongoing research and development.
The Company successfully implemented an organisational restructure by merging the Projects and Operations teams and streamlining its Graphene Manufacturing Plant and Thermal XR® Blending Plant. The new operating model to deliver Projects of scale will rely on trusted third-party providers who have a strong working relationship with GMG and a track record of delivery. Through careful organisational restructuring and active cost management, the Company has reduced its monthly operating cost base by almost 45% since September 2023. The Company will continue to look for ways to continue this trend while maintaining a delivery mind set.
GMG's CEO Craig Nicol stated, "The timely receipt of the Research and Development rebate from the Australian Federal Government continues to provide significant working capital support while the Company has continued to focus on improving its cost base through streamlining of Operations and Projects teams while maintaining focus and pace on delivering its four critical business objectives."
GMG's Chairman and Non-Executive Director, Jack Perkowski, commented: "The implementation of targeted costs savings together with the Research & Development rebate, allows the Company to remain focused on growing the sales of its Energy Savings products."
About GMGwww.graphenemg.com
GMG is a clean-technology company which seeks to offer energy saving and energy storage solutions, enabled by graphene, including that manufactured in-house via a proprietary production process. GMG has developed a proprietary production process to decompose natural gas (i.e. methane) into its elements, carbon (as graphene), hydrogen and some residual hydrocarbon gases. This process produces high quality, low cost, scalable, 'tuneable' and low/no contaminant graphene suitable for use in clean-technology and other applications.
The Company's present focus is to de-risk and develop commercial scale-up capabilities, and secure market applications. In the energy savings segment, GMG has focused on graphene enhanced heating, ventilation and air conditioning ("HVAC-R") coating (or energy-saving coating), lubricants and fluids.
In the energy storage segment, GMG and the University of Queensland are working collaboratively with financial support from the Australian Government to progress R&D and commercialization of graphene aluminium-ion batteries ("G+AI Batteries").
GMG's 4 critical business objectives are:
- Produce Graphene and improve/scale cell production processes
- Build Revenue from Energy Savings Products
- Develop Next-Generation Battery
- Develop Supply Chain, Partners & Project Execution Capability
For further information please contact:
- Craig Nicol, Chief Executive Officer & Managing Director of the Company at craig.nicol@graphenemg.com, +61 415 445 223
- Leo Karabelas at Focus Communications Investor Relations, leo@fcir.ca, +1 647 689 6041
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this news release.
Cautionary Note Regarding Forward-Looking Statements
This news release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends", "expects" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or will "potentially" or "likely" occur. This information and these statements, referred to herein as "forward-looking statements", are not historical facts, are made as of the date of this news release and include without limitation, statements regarding the Company's new operating model, future cost reductions, and the Company's focus on the sale of its energy saving products.
Such forward-looking statements are based on a number of assumptions of management, including, without limitation, that the new operating model to deliver Projects of scale will rely on trusted third-party providers who have a strong working relationship with GMG and a track record of delivery, that the Company will continue to look for ways to reduce costs while maintaining a delivery mind set, and that the Company's focus will remain on growing the sales of its energy saving products.
Additionally, forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of GMG to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: that the Australian Federal Government will not continue its Research and Development Tax Incentive scheme, or that the Company will not continue to benefit from the tax incentive, that the new operating model to deliver projects of scale will not rely on trusted third-party providers who have a strong working relationship with GMG and a track record of delivery, that the Company will be unable to reduce costs further while maintaining a delivery mind set, that the Company will not remain focused on growing the sales of its energy saving products, risks relating to the extent and duration of the conflict in Eastern Europe and its impact on global markets, the volatility of global capital markets, political instability, the failure of the Company to obtain regulatory approvals, attract and retain skilled personnel, unexpected development and production challenges, unanticipated costs and the risk factors set out under the heading "Risk Factors" in the Company's annual information form dated October 3, 2024 available for review on the Company's profile at www.sedarplus.ca.
Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/229939
SOURCE: Graphene Manufacturing Group Ltd.
