Universal Matter UK Limited has entered into binding term agreement to acquire Applied Graphene Materials UK Limited and Applied Graphene Materials LLC from Applied Graphene Materials plc (AIM:AGM) for $1.3 million on February 22, 2023. The consideration for the will be paid entirely in cash and split as - Shares in AGM UK: approximately $1.3 million and shares in AGM US: $1. The transaction shall conclude on a cash free/debt free basis. As at July 31, 2021, AGM UK had net assets of approximately $2.2 million, revenues of approximately $0.15 million and losses after tax of approximately $3 million.

The transaction is subject to shareholder approval, resolution passed at a general meeting of Applied Graphene Materials (or at any adjournment thereof) approving (inter alia) the sale and purchase agreement and the Secretary of State providing the Buyer with requisite clearance pursuant to National Security and Investment Act 2021. The transaction is expected to close by April 30, 2023. The net consideration (after deducting the holding and advisor costs) will substantially be used to repay creditors, the staff and operating costs of the group until Applied Graphene Materials can be wound down.

The NSIA approved the transaction as of March 24, 2022. Peter Steel, Alex Bond and Oliver Platts of Nplus1 Singer Advisory LLP acted as the financial advisor to Applied Graphene Materials plc (AIM:AGM).