Haydale (AIM:HAYD), the global nanomaterials group, will hold its Annual General Meeting (‘AGM’) at 2.00 p.m. today at the offices of Fieldfisher LLP, 9th Floor, Riverbank House, 2 Swan Lane, London, EC4R 3TT. At the AGM the Chief Executive of Haydale, Ray Gibbs, will make the following statement:
“Haydale continues to make good progress in what has been a transformational year for the Group, and I am pleased to provide the following update on our operations today:
Integration of Acquisitions
“The integration of Advanced Composites Materials (‘ACM’) into the Group following its acquisition in mid-October 2016 has proceeded as planned. ACM’s revenue for the period under our ownership from 13 October 2016 to the end of December is expected to be approximately US$1.0 million and the business is on track to achieve its budgeted sales for current financial year. The process of introducing ACM’s silicon carbide fibres and whiskers to our customer base has already commenced, initially in South Korea, for a cookware customer who is currently evaluating an entirely new product range incorporating a novel “hybrid” graphene and silicon carbide coating. Other new customer opportunities for introducing ACM’s nano-products are also advancing well, especially in enhancing abrasion and erosion resistance of traditional composite resins.
“Good progress has also been made with the acquisition of Innophene, which is based in Thailand’s largest Science Park near Bangkok. We expect our laboratories to be operational, incorporating a new HT60 functionalisation reactor, by March 2017. Furthermore, we are pleased to have been recently awarded a small funded project with the Malaysian Government on elastomers.
Products Update
“The recent joint announcement of our legally binding agreement with Huntsman Advanced Materials (‘Huntsman’), a subsidiary of NYSE-listed The Huntsman Corporation, has cemented our technical relationship in introducing graphene infused Araldite® epoxy resin to targeted customers. The customer sampling process is now expected to last 6-12 months, slightly longer than we had originally anticipated and, if successful, would mean that commercial revenues from this exciting agreement would likely commence in the next financial year. We believe that the market size for these products is truly global and generating significant future revenues remains the key objective for both parties to the agreement. A major factor in Huntsman’s desire to commercialise their epoxy resin is our ability to enhance their thermal conductivity without affecting the processibility of the resin, which is a difficult yet crucial requirement. We will continue to invest in and develop further this important relationship with Huntsman.
“We also continue to work closely with Flowtite Technology, a world leading glass reinforced plastic (“GRP”) pipe manufacturer, to incorporate graphene into their next generation large diameter water and sewerage GRP pipes. This project is on schedule and we are set to conduct the first production trial in Q1 2017. If successful, we understand that Flowtite Technology intends to launch this new innovative product in the second half of next year.
“Following the successful launch of our graphene enhanced 3D printing PLA in September this year, we have started shipping reels for sale by distributors in the UK, Europe and New Zealand. We will update the market on product sales as we progress with widening distribution, including through our overseas subsidiaries, and in new territories such as China.
“Haydale is now working with some ‘best in class’ businesses around the world, putting in place the foundations for the Group to move to the next stage of our development in moving to a commercial sales organisation. We believe that Haydale is gaining the necessary credibility and standing in the market to make significant advancements in the commercialisation of not only Graphene but other product enhancing nanomaterials and we look at the future with optimism.”
Chairman Update
We announced in September that John Knowles is to retire and step down as the Group’s non-executive Chairman.
We have identified a suitable individual whom the Board believe would provide a valuable contribution to the stewardship of Haydale over the coming years. We and our advisers are currently undertaking the necessary checks but are optimistic of making an announcement in the New Year.
