Versarien Share Discussion Threads

[loglorry1] 05/1/2020 18:08

It seems today's threads seem to be about how Versarien can get government support via loans and grants.

Why would they need a crutch? They have a premium product, 3T a year capacity which has been running "flat out" and big companies desperate to buy at high gross margins.

Yet the discussion is about gov support and invoice discounting to stay afloat.

Surely all Neill has to do is snap his fingers and BIGT will present him with a huge bag of cash in return for modest dilution?

[loglorry1] 05/1/2020 17:50

"with the uniqueness of vrs and a lot of major companies wanting what we have."

As a Graphene producer are they unique because nobody buys the graphene they produce in any significant quantify?

Also a bit confused as you say a lot of major companies want what they have. Yet despite running the 3T machine "flat out" nobody seems to want the product.

It's a pity these bullish statements so easy to make don't fit the hard reality of the situation.

[kemorkid] 05/1/2020 17:30

Jointer
Thank you too
Brilliant posts
Looking forward to great week

[1teepee] 05/1/2020 17:21

Face to face , people respect each other more

[woodpeckers] 05/1/2020 16:59

Thank you KK, you too.

[kemorkid] 05/1/2020 16:56

Excellent post woods
Thank you very much
Rock of sense you are
Head settled now Thank God.

Have a lovely evening
KK

[woodpeckers] 05/1/2020 16:49

Good points jointer, imagine if we were about to ipo now, knowing all that we who research know about what we have... what price would you put on it?

[jointer13] 05/1/2020 16:37

a lot of b/s and lies on here.

we are a pre profit company...that's all about to change.

in unison (all at the same time)


facts...just some of them.

First graphene company in the world to complete the US Graphene Council's "Verified Graphene Producer" programme

Continued progress in international expansion, including receiving the first graphene orders in the US and Japan

Large-scale industrial prototype to improve rail transportation infrastructure, using Versarien's graphene enhanced polymer technology showcased and successfully in test to date.

Successfully incorporated wholly foreign owned enterprise in China (Beijing Versarien Technology Company Limited) with a business license granted by the relevant Chinese authorities

Receipt of EU REACH approval to manufacture up to ten tonnes of graphene per annum

Commercial partnership agreement signed with the Company's textile sector collaboration partner, MAS Innovation (Private) Limited, the first demonstration of Versarien's graphene commercialisation strategy with a major global partner

"We have also signed a non-binding term sheet with the intention of setting up manufacturing in Shangdong. under a joint venture between Versarien and Jinan Bo Guan Building Engineering Co., Ltd with controlling ownership residing with Versarien. JBG would, together with associates, be responsible for the construction of a graphene valley park over a three-year period and JBG have expressed an interest in taking a strategic investment stake in Versarien as part of any transaction. Legally binding contracts have yet to be signed and updates on progress will be made in due course.

"Over the period under review and subsequently, we have been progressing our business both in the UK and globally. The focus remains on our graphene commercialisation strategy and we are now actively working on 40 mainstream projects with our commercial partners, have a further 24 projects underway and active research ongoing on another 17. We continue to focus on the projects most likely to produce near-term significant revenue streams. These include graphene-enhanced transportation arches, 3D printing of concrete, aircraft interior parts, parts for down hole drilling in the oil and gas sector and graphene enhanced textiles.

[forestfred] 05/1/2020 15:46

It’s another day .

But with the Same old resident trolls
trying even harder than normal.

They need to get a life or some Vrs shares to get a better one .

As always Dyor


Relaxed , happy optimistic here .

Good luck and best wishes Vrs family
:-)
Ff

[woodpeckers] 05/1/2020 15:44

Just been reading through some of my notes/copied posts that I've liked from others and thought I'd put this one up here as It struck me that the company are applying the same clever skills to the deal with China that evergreen spoke about here which could explain why negotiations are prolonged…..

From Evergreen after the MAS RNS....

“There are a number of very important understandings that I have been able to take away from this RNS.

The first is that the 22 month collaboration between MAS and VRS also involved multiple third party clients with global market share in specific sectors who participated in and have now successfully COMPLETED the development and testing of Graphene enhanced products.

The second is that the testing has confirmed that the Graphene enhanced product performance is so significantly better than the competition that it creates a new higher strata of differentiated product that allows for higher pricing and better rates of return. (Standard market segmentation practice)

The third is that VRS has avoided the fatal trap of becoming the subordinate supplier to MAS who in the event that they had become the single high volume purchaser would have been able, once the supply chain had become established, to dictate product pricing terms to VRS.

Instead VRS have cleverly maintained direct pricing relationships with multiple end user third party brands allowing VRS to maintain unilateral control of the supply chain and control of future pricing levels.

The fourth is that the third party brands could not contract for the purchase of high volume Graphene enhanced product until a contract had been signed between MAS and VRS that secured the continuity of supply of Graphene enhanced materials.

The fifth is that MAS would have no incentive to conclude arrangements with VRS until MAS new with certainty that the preceding 22 months of negotiation between VRS and the third party brands had been concluded to all parties satisfaction.

It is a reasonable supposition that the nomad has obliged this RNS even though the signing of the contract with MAS does not in itself generate revenue but is instead the essential precursor to concluding revenue generating contracts with the third party brands.

My expectations are that the signing of the MAS contract will very shortly be followed by the formal conclusion of the revenue generating arrangements with the third party brands.

My overarching takeaway is respect for the competence and foresight of the team at VRS who have secured the long term interest of the company and the shareholders while rejecting the pursuit of the short term short sighted benefits so lauded by the detractors on this board.

Could not be more confident that we are being de-risked, that Chris, the Chief Financial Officer at VRS, knew what he was talking about when he said we were very close to significant revenues and that all LTHs will be fabulously rewarded.”

Echoing the sentiment from evergreen that VRS has superior products which allow for higher pricing….
Joe Eldridge, Director of Fullerex, commented:
“Over the last five years Fullerex has engaged with dozens of nanomaterial producers. Very few have demonstrated the same degree of rigour throughout the entire production process as Versarien. The morphology and consistency of Versarien’s Nanene and Hexotene products make them technically and commercially viable in several important application areas that have large, immediate and well defined demand from industry."

[evergreen8] 05/1/2020 15:39

Cheek
This is the link to the Vox markets interview with Chris our Chief Financial Officer where at circa 1:35 Chris states that
............”at the end of the period we had 2.6 million cash on the balance sheet we also have invoice discounting with headroom of a further 700k so between the two of them we have 3.3 million at the end of September”

This is the information that framed my understanding that their invoicing arrangements added to their working capital.

[franksan] 05/1/2020 15:22

The ramblings of the shorters will cost genuine shareholders a great deal. They know absolutely nothing. Why are they here if they don't hold VRS? On a positive note, HS2 - inevitably s big role for VRS.

[oracle6] 05/1/2020 14:42

All very happy to sit in a private Discord group and have direct contact with management (if its confirmed they are in there), but the same PIs refuse to confirm or deny the fact on here. Maybe the Sheriff of Aim would have more luck finding out the truth?

[supernumerary] 05/1/2020 14:40

evergreen - if you look at the last accounts you can see that in prior periods they claimed R&D tax credits, but in the last period there were none. I'm not sure whether that was because there was no tax, or no applicable R&D, or both. No doubt the CFO would know.

While looking, I see there are also £2M of inventory and £2M of trade receivables, both about what I remember from previous reports. They look like very high figures to me, but as I'm not an accountant, I can't say quite how they compare with other similar size companies. Maybe they're providing graphene to distributors on sale or return? I've no idea how that or any similar qualified sale would be handled in the accounts. Are there any accountants here who can comment?

In theory it seems to me that all of the trade receivables could be factored - presumably they're goods which have been invoiced and despatched but not yet paid for? - but as far as I remember the CFO only reckoned he could get another £0.5M from this source, so what it all consists of I don't know. Again, comment from an experienced accountant would be helpful.

I also see that sales of 'Graphene and Plastic Products' (not necessarily in that order) have fallen off a cliff. I understand this is because they stopped making low margin products? If so, shouldn't that show an improvement in the GM figures? I can't see it myself; as always, expert advice appreciated.

It's a great pity that nobody seems to take the accounts seriously. They speak to the management's ability to run some rather simple businesses well: it's one of the great flaws in Mike Brenner's otherwise cogent arguments about future possibilities that for any of it to be achieved, the management has to be not merely competent, but highly gifted. The evidence for that, as shown in the accounts, is not strong.

[washbear] 05/1/2020 14:13

Can I say how uplifted I m that this board has suddenly got so much better. Last week I was loosing the will to live reading the stuff put here.The LSE boards were so so much more informative ( not always the case)...

[luckyorange] 05/1/2020 14:11

When shorters get noisy the share price is about to rise cheek.

UK Government to support disruptive technology that is ready to go and now they have the influence to do that with a resounding majority they will. Invest in infrastructure and the rest always follows as confidence returns, imminent I would say and not a word used lightly.

"With the large-scale AECOM prototype having been showcased, it demonstrates the real and near-term possibilities of graphene, and with our position as the first company in the world to receive accreditation for graphene, coupled with the REACH registration, we are in the best possible position to be a major part of the imminent "Graphene Revolution".

[cheek212] 05/1/2020 13:58

I think they mentioned that they had funds available to the group via an invoice discounting facility, which wasn't being utilised. Exactly the same way that every other company on a quoted exchange also highlights the cash and facilities available to the business in their trading update. So not exactly sure why you are trying to make an issue of it when it's standard practice to every quoted company. You just try harder loglorry!

[laginaneil] 05/1/2020 13:51

Morning Folks,

Is someone saying Chris told a 'porky' or is this a 'wires crossed' argument?

[cheek212] 05/1/2020 12:56

I don't need to - I work in the industry and know how factoring/CID works. They cant assign an invoice until the goods are delivered or left the factory and there is 3rd party evidence of this. They cannot get funding via factoring on just an order - only once it has to be delivered.

[oracle6] 05/1/2020 12:30

Thanks for confirming its not open to all investors. Can you confirm that at least one senior management member is also in the Discord group? Is there a second management team member in there?

[johnveals] 05/1/2020 12:07

No. Because then it wouldn’t be a private group of select Private Investors. As an oracle I thought you would know this.