Graphjet enters a merger agreement with Energem Corp
01 Aug 2022
Graphjet Technology Sdn Bhd (Graphjet), a research and development firm that specialises in the production of graphene and graphite, has entered into a merger agreement with Energem Corp.
The signing ceremony was held in the presence of Science, Technology and Innovation Minister Datuk Seri Dr Adham Baba.
In a statement today, Graphjet said the merger with Energem Corp, a special purpose acquisition company (SPAC), would see Graphjet becoming a publicly listed company and trade on the Nasdaq Stock Exchange (Nasdaq).
“The targeted listing date of Graphjet is in October 2022 with a pro forma enterprise value of US$1.49 billion (US$1=RM4.45) upon listing.
“The business combination will provide around US$115 million to Graphjet which will be used for the business expansion of Graphjet,” it said.
Graphjet said the company has successfully developed a revolutionary patented technology that would transform palm kernel shell, a waste from palm kernel production, into high-demand graphene materials, at a significantly lower cost than the current graphene production.
It said the average selling price for graphene ranges from around US$300 to US$400 per gramme but Graphjet’s technology would lower the price to between US$20 and US$25 per gramme.
“Our success will put Malaysia on the world map as the first in the world to transform renewable raw materials such as palm kernel into graphene,” chairman Lim Hooi Beng said.
He said the merger agreement with Energem Corp is timely as it put Graphjet on an accelerated growth trajectory with a plan to set up its manufacturing plant in Kuantan, Pahang.
Meanwhile, Graphjet also marked its foray into the export market with an exclusive distributorship agreement with Toyoda Trike Inc (Toyoda), Japan’s developer and manufacturer of pure electric vehicles (EV) and electric bicycles.
It said the exclusive distributorship agreement with Toyoda would generate significant earnings growth for both companies and is expected to contribute around US$30 million of revenue per year for Graphjet.
“The exclusive distributorship agreement will give us an opportunity to expand our products into Japan.
“As the EV industry’s key raw materials, the prospects of graphite and graphene are enormous.
“The first phase of our expansion is to focus on Japan’s collaboration and we are looking forward to expanding into the US and European countries where demand for graphene is on the rise,” Lim said.
Graphene is the thinnest and lightest known material which has about 200 times the strength of steel and is also one of the best conductors of electricity and heat that is visually transparent.