Adisyn’s Bold Pivot: Risks and Rewards of Integrating 2D Generation’s IP

Strategic Acquisition Marks New Chapter

Adisyn Ltd (ASX: AI1) has taken a decisive step into the semiconductor arena with the completion of its acquisition of 2D Generation Ltd, a company specialising in graphene-based semiconductor intellectual property. This acquisition, announced in January 2025 following formal negotiations throughout late 2024, is set to significantly enhance Adisyn's technological capabilities and market reach.

2D Generation's patented technology enables graphene coating at sub-300 degrees Celsius, a breakthrough that promises to overcome longstanding industry barriers related to semiconductor miniaturisation, power efficiency, and heat management. This positions Adisyn at the forefront of next-generation semiconductor innovation, with potential applications spanning defence, data centres, and cybersecurity sectors.

Capital Raise Fuels Ambitious Development Plans

To support this strategic pivot, Adisyn successfully secured $10 million through a heavily oversubscribed placement to institutional and sophisticated investors. The capital injection will fund the acquisition of cutting-edge equipment, notably a new Atomic Layer Deposition (ALD) machine from Beneq, which is critical for the precise graphene layering process. Installation of this ALD system is expected within months, enabling significant development milestones such as uniform graphene deposition on semiconductor wafers.

Beyond equipment, the funds will bolster commercial initiatives and working capital, underpinning Adisyn’s broader growth strategy. The company is actively collaborating with industry leaders including NVIDIA, IMEC, and NXP to explore innovative applications and accelerate commercialisation.

Governance Strengthened by Industry Veterans

Adisyn has also enhanced its leadership team by appointing two internationally recognised technology experts as Non-Executive Directors. Arye Kohavi, founder of Water-Gen and a celebrated innovator in environmental technology, joins the board bringing entrepreneurial insight and a track record of commercial success. Kevin Crofton, a semiconductor industry veteran with over 30 years of leadership experience at global tech firms, will also join pending shareholder approval, adding strategic depth to Adisyn’s semiconductor ambitions.

These appointments signal Adisyn’s commitment to marrying cutting-edge technology with seasoned governance, a combination critical for navigating the complex semiconductor landscape.

Streamlining Focus Through Divestment

In parallel with its semiconductor focus, Adisyn is divesting its Miner Hosting business, a non-core asset that has been loss-making. The binding agreement to sell this division to Metacorp Developments Pty Ltd is expected to complete by March 2025. This move will allow Adisyn to concentrate resources and management attention on its core technology development and commercialisation efforts.

Financial Position and Outlook

For the December 2024 quarter, Adisyn reported cash receipts of approximately $1.039 million and total revenue of $942,000. Operational cash burn was $820,000, including one-off acquisition-related costs. Post-quarter, the company’s cash position was bolstered by the $10 million placement, providing an estimated 2.44 quarters of funding based on current operating cash flows.

Managing Director Blake Burton expressed optimism about 2025, highlighting the transformative potential of 2D Generation’s technology and the company’s strengthened financial footing. The integration of graphene-enhanced semiconductor IP is expected to open new commercial avenues and position Adisyn as a notable player in a rapidly evolving industry.