First Graphene Boosts Growth with UK R&D Rebate and New Global Deals
First Graphene Limited strengthens its financial footing with a UK R&D tax rebate and expands its global footprint through new distribution agreements in India and Brazil.
- Received circa AUD 166,000 UK R&D tax rebate
- Secured five-year distribution deal in India
- Signed 12-month distribution agreement in Brazil
- PureGRAPH® now distributed by 10 companies across nine countries
- R&D rebate and distribution deals support H2 FY25 commercial growth
Financial Boost from UK R&D Tax Rebate
First Graphene Limited (ASX:FGR) has received a tax rebate of approximately AUD 166,000 for research and development activities conducted in the United Kingdom. This rebate not only reinforces the value of the company's R&D efforts but also bolsters its balance sheet as it prepares for an ambitious growth phase. The company anticipates an additional rebate from its Henderson manufacturing facility in Western Australia in the coming quarter, further strengthening its financial position.
Expanding Global Reach with New Distribution Agreements
In a strategic move to accelerate market penetration, First Graphene has secured two new distribution agreements. The first is a non-exclusive five-year deal covering multiple sectors across India, a rapidly growing market with significant demand for advanced materials. The second is a 12-month engagement with a Brazilian distributor, opening direct pathways for PureGRAPH® products across diverse segments in South America.
These agreements expand First Graphene’s global distribution network to 10 companies operating in nine jurisdictions, including key markets such as North America, Europe, South Africa, China, and Vietnam. Leveraging established distributors with technical sales expertise allows the company to tap into high-quality clientele and drive commercial opportunities more effectively.
Positioning for Strong Commercial Growth in H2 FY25
Managing Director and CEO Michael Bell highlighted that the new distribution deals provide "additional firepower" for the company’s global presence. As First Graphene enters 2025, the focus is on introducing PureGRAPH® to emerging markets and capitalizing on a robust pipeline of opportunities. The combination of financial support from R&D rebates and expanded market access positions the company well for accelerated commercial growth in the second half of the fiscal year.
First Graphene’s PureGRAPH® product range is recognized for its high performance and is targeted at large, high-growth sectors including cement and concrete, composites, coatings, adhesives, and energy storage. The company’s commitment to sustainability is underscored by the potential of its materials to reduce carbon dioxide emissions through improved manufacturing efficiency and product longevity.
Outlook and Strategic Implications
The recent developments underscore First Graphene’s strategy of combining innovation with global market expansion. The UK R&D rebate validates the company’s investment in advanced materials research, while the new distribution agreements enhance its commercial footprint in key emerging markets. Investors will be watching closely to see how these initiatives translate into revenue growth and market share gains in the coming quarters.
Bottom Line?
First Graphene’s blend of R&D success and global expansion sets the stage for a pivotal growth phase in 2025.
Questions in the middle?
- How will the new distribution agreements impact revenue and market share in India and Brazil?
- What is the expected timeline and size of the upcoming R&D rebate from the Australian facility?
- How effectively can First Graphene leverage its expanded distributor network to accelerate PureGRAPH® adoption?