- Advanced materials company Versarien said it had signed a term sheet with Beijing Institute of Graphene Technology covering a proposed cooperation to develop Versarien's graphene-related business in China.

The term sheet was signed on Sunday at a public ceremony in Shenzhen attended by representatives of BIGT, the company and from the Chinese and UK governments.

Subject to the completion of due diligence, it envisaged BIGT assisting Versarien with the establishment of a subsidiary in China, wholly owned by the company.

The subsidiary would be focussed on the manufacture of Versarien's graphene and other 2D materials in China and their sale to Chinese customers, working in collaboration with BIGT.

The agreement would not preclude Versarien entering into other ventures in China and it remained the company's preference that any Chinese manufacturing base was situated in Jinan, Versarien said.

The term sheet envisaged that BIGT would provide funding to Versarien for the proposed subsidiary and other corporate purposes in the form of an equity investment -- providing BIGT with a holding of up to 15% of Versarien,

Versarien and BIGT were currently undertaking additional due diligence and detailed negotiations.

'We are very pleased to have reached the term sheet stage in our discussions with Beijing Institute of graphene technology,' chief executive Neill Ricketts said.

'This developing relationship potentially offers a huge opportunity for the company and we look forward to progressing matters.'

At 9:11am: [LON:VRS] Versarien PLC share price was +7.5p at 137.5p

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