2020-08-27
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Innovative North East business Applied Graphene Materials has announced it has started trading on an American exchange as it ramps up activity overseas.
The Wilton company, which manufactures the super strong ‘wonder material’ graphene, has formed a number of collaborations with companies and also sells its own graphene dispersions, offered to users worldwide through a rapidly-growing distribution network.
Now, just over a week after the Redcar firm signed a distribution agreement an Ohio firm, Applied Graphene Materials (AGM) has announced that the company’s shares will cross-trade publicly on the US OTCQB Venture Market.
It said trading on the US OTC market will have no impact on existing AGM ordinary shares admitted to trading on the AIM Market of the London Stock Exchange and no new ordinary shares were issued as part of the cross-trade.
The group will also continue to rely on the announcements and disclosures it makes to the London Stock Exchange and has no Sarbanes-Oxley or SEC reporting requirements.
The cross-trading facility is provided through OTC Markets Group Inc based in New York, which operates the world’s largest electronic interdealer quotation system for US broker dealers and offers multiple media channels.
The firm said that independent studies show that trading on the OTC by an international company offers a positive effect on the liquidity of its shares.
The move comes after the AIM-listed Durham University spin-out recently signed three major international distribution deals for its graphene products in a week, as it ramps up its network to drive up sales.
In addition to its own commercial hubs in the UK and the United States, AGM - which recently marked 10 years of trading - now has distribution agreements with local expert chemicals and coatings distributors in the Netherlands, Belgium, Luxembourg, Greece, Italy, South Africa and Japan.
A recent deal was with Maroon Group LLC, based in Ohio, US, a distributor of specialty chemicals and ingredients across North America.
The agreement adds to AGM’s growing commercial distribution network and provides a direct route into the coatings and polymers sectors across the US and Canada and will see the two companies collaborating on customer opportunities for AGM’s Genable technology in Canada and the US.
Adrian Potts, AGM CEO, said: “AGM is building a strong international commercial profile including in the U.S. where we see significant potential for our product offering, in addition to the recent signing of a distribution agreement with Maroon Group, LLC, and so we are also delighted to be joining the OTCQB Market, with a view to increasing our visibility to the investment community, broadening our shareholder base and improving liquidity.”
Read the original article on Business Live.