Papyrus Signs $4.2m Contract, Wins $250k Grant, and Restructures Leadership

Transitioning from R&D to Commercialisation

In the quarter ended 30 September 2025, Papyrus Australia Ltd (ASX, PPY) marked a pivotal phase in its evolution, moving decisively from research and development towards commercialisation. Central to this progress was the signing of a binding Terms Sheet with TBS Mining Solutions, valued at approximately $4.2 million, to manufacture a next-generation biodegradable Collar Keeper® product. This collaboration leverages Papyrus’s patented technology alongside TBS’s manufacturing expertise, aiming to deliver an innovative and environmentally responsible solution to the market.

Alongside this, Papyrus has been advancing its partnership with Thanh Dung Co in Vietnam to establish a high-volume production facility. This initiative is critical for scaling operations and meeting anticipated demand, with ongoing trials and operational planning shaping the pathway to full production.

Government Support and Innovation Hub

Further bolstering its commercialisation efforts, Papyrus secured a $250,000 Early-Stage Commercialisation Grant from the Australian Government’s Industry Growth Program. This grant was matched by investor funding, underscoring confidence in the company’s growth trajectory. The funds are accelerating work at the Rapid Prototyping and R&D Facility in Adelaide, a hub designed to fast-track technology scaling and product development. This facility is positioned as a nexus connecting growers, manufacturers, and technology stakeholders, enhancing innovation and operational readiness.

Leadership Changes to Support Growth

Recognising the demands of commercialisation, Papyrus restructured its leadership team. Daniel Schmidt was appointed CEO in August 2025, bringing fresh operational focus, while Patricia Vanni took on the role of Company Secretary. The Board welcomed Arthur Stavrou as a Non-Executive Director, whose extensive international legal and corporate experience is expected to strengthen governance and strategic contract negotiations. These changes reflect a deliberate shift to align management capabilities with the company’s expanding commercial ambitions.

Financial Position and Outlook

Financially, Papyrus reported a solid cash position of $428,000 at quarter-end, supported by a recent capital raise of $262,000 and option exercises by the Executive Chair. The company also holds unused financing facilities totaling $250,000 and a loan facility of $369,000 linked to its R&D tax incentive program. With estimated funding to cover nearly 10 quarters of operations, Papyrus appears well-positioned to sustain its commercialisation activities in the near term.

Expenditure during the quarter focused on R&D equipment, staff, intellectual property, and compliance costs, consistent with the company’s strategic priorities. Notably, the company’s subsidiary in Egypt holds restricted cash of $239,000, with its activities accounted for separately.

Looking Ahead

While the TBS contract and Vietnam production facility represent significant milestones, the timelines for full commercial ramp-up and revenue recognition remain to be clarified. Investors will be watching closely for updates on operational progress and the impact of leadership changes on execution. Papyrus’s ability to convert its R&D innovations into scalable commercial products will be critical to sustaining momentum and delivering shareholder value.