First Graphene Expands US Footprint with MITO Material Solutions Acquisition

Strategic US Expansion Through Acquisition

First Graphene Limited (ASX:FGR) has taken a decisive step to deepen its presence in the United States by acquiring all assets, intellectual property, product lines, and manufacturing capabilities of MITO Material Solutions, Inc. This move instantly broadens FGR’s product portfolio beyond its core PureGRAPH® graphene powders into functionalised graphene and graphene oxide technologies, areas gaining traction for their advanced material performance enhancements.

The AU$850,000 deal, structured as a mix of upfront cash and contingent share payments tied to MITO’s sales milestones over two years, also establishes a direct operational and commercial platform in the USA. This positions FGR to tap into the vast US defence and aerospace markets, sectors increasingly focused on graphene-enhanced materials for their superior strength, conductivity, and multifunctionality.

Enhancing Defence and Aerospace Capabilities

Functionalised graphene and graphene oxide are emerging as critical enablers in aerospace and defence applications, improving interfacial bonding, mechanical resilience, and electromagnetic shielding. The acquisition aligns with recent US Department of Defence and DARPA initiatives targeting lightweight composites, thermal management, and next-generation survivability materials.

FGR’s expanded portfolio now includes MITO’s E-GO®, LIGRA, OMEGA, and DELTA product lines, covering thermoset and thermoplastic composites, coatings, resins, and nanomaterial additives. These complement First Graphene’s existing technologies and open pathways to applications such as perovskite solar cells for endurance drones and advanced carbon fibre composites.

Established US Customer Base Validates Technology

MITO’s products are already embedded in demanding US markets, with premium brands like Parlor Skis, Folsom Custom Skis, and St. Croix Rods leveraging graphene-enhanced materials to improve strength-to-weight ratios, durability, and responsiveness. These real-world applications underscore the commercial viability of MITO’s functionalisation technologies and their potential scalability into larger industrial and defence contracts.

The acquisition also brings immediate revenue streams and a substantial pipeline, with over 25 clients in late-stage testing across various sectors, providing a springboard for accelerated growth.

Financial Terms and Growth Prospects

The transaction’s AU$850,000 consideration is split into AU$275,000 cash and AU$575,000 in shares issued upon meeting sales targets, subject to shareholder approval. This success-based structure aligns incentives and mitigates upfront risk while leveraging FGR’s existing cash reserves and share issuance capacity.

With the US sports market valued at over US$1 trillion and the US Department of Defence’s budget exceeding US$1.18 trillion, FGR is well-positioned to capitalise on these high-value sectors. The acquisition complements the company’s recent moves to broaden its global footprint, including previous expansions into geotextiles and Canadian infrastructure markets.

Managing Director Michael Bell described the acquisition as a “transformational push” into the US, creating one of the broadest graphene product portfolios globally and accelerating revenue growth in the world’s largest advanced materials and defence market.