TIDMGELN
RNS Number : 1425T
Gelion PLC
16 March 2023
16 March 2023
Gelion plc
("Gelion", "the Group" or the "Company")
Interim results to 31 December 2022
Gelion plc (AIM: GELN), the Anglo-Australian energy storage
innovator, is pleased to announce its interim results for the six
months ended 31 December 2022.
Operational / strategic progress
-- Achieved significant milestone with the commissioning of our
pilot manufacturing plant at Battery Energy Power Solutions
('Battery Energy') in Western Sydney, Australia
-- First industrial production of Gelion's zinc-bromide battery
technology
-- Appointment of John Wood as the new CEO, a battery, clean-tech
and innovation specialist, bringing over 30 years of significant
commercial and manufacturing expertise and C-Suite experience
-- Launched the zinc-bromide match to market exercise focussed
on the identification of applications that are best suited
to our technology in the near-term
-- Demonstrated progress towards success on both half-cells and
our proprietary electrolyte based on our LiSiS IP that is
intended to be compatible with variety of anode materials,
including graphitic, silicon and lithium metal-based. LiSiS
batteries offer the potential to produce lower cost, safer
batteries with double the range of existing electric vehicles
-- Developed and implemented a more sophisticated battery management
system ("BMS") for zinc-bromide batteries, designed to allow
for high accuracy measurements
-- Initiated development of a robust BMS software to manage multi-string
systems and provide reliable data for real-time data analysis
-- Advanced the development of a LiSiS based technology that
is intended to be compatible with variety of anode materials,
including graphitic, silicon and lithium metal-based
Financial Highlights
-- The Company remains well capitalised with Cash and cash equivalents
(incl. term deposits) at period end of GBP14.4m (June 22: GBP17.0m)
-- Debt free balance sheet
-- Adjusted EBITDA loss for the period: GBP4.4m (H1 FY22 EBITDA
loss: GBP2.3m) indicative of the investments made to develop
and progress on the path towards commercialisation
-- Our FY23 guidance is largely in line with our expectations
at the time of the IPO
Post Period Highlights
Acciona trial
-- Manufactured 1,200 zinc-bromide cells for the Acciona trial
from our pilot manufacturing line.
-- BMS is currently being subject to internal testing and validation
to occur in realistic on-site environment prior to trial start.
-- Completed the zinc-bromide match to market exercise with opportunities
identified that have potential for strong competitive advantage
in many lead acid applications, particularly within the fast
discharge space e.g., Uninterruptible Power Supply (UPS) for
data centres and telecommunications, ESS and other stationery
applications etc.
Lithium-Silicon-Sulfur
-- Acquired world leading intellectual property ("IP") portfolio
from Johnson Matthey:
- Contains over 450 patents granted, based on 82 patent families,
which strengthens our position in the (LiSiS) market and accelerate
technology development, fast-tracking commercialisation pathways
- This acquisition strongly complements current LiSiS technological
advancements and its IP portfolio. The combination of Gelion's
existing and the new IP portfolio has the potential to facilitate
and fast track technological advancements to deliver ground-breaking
high energy density lithium technology to the market up to
5 years earlier that the current industry estimates
- Sulfur cathode technologies promise exceptional performance
and market desirability. The combination of the Johnson Matthey
IP portfolio with Gelion's incumbent solutions is intended
to provide paths to address the primary challenges to establish
durability and place Gelion at the forefront of the competitive
lithium-sulfur battery space
-- Building up on the Johnson Matthey acquisition, Gelion acquired
the IP assets in relation to sulfur cathodes, electrolytes and
additives from the University of Sydney by converting the existing
exclusive licence, providing Gelion with greater control of the
entire IP around LiSiS.
-- Gelion was selected for the "Supercharge Australia Innovation
Challenge" to support lithium battery innovation and capture
more value from the lithium battery supply chain. Gelion aims
to use the initiative to extend visibility and understanding
of the strength, relevance, and ultimate potential of its LiSiS
initiative and to help further develop important connections
inside the Australian and Global supply chain.
Dr Steve Mahon, Non-Executive Chairman commented: "H1 FY23 was
an exciting period of development for Gelion, during which we
welcomed CEO, John Wood. Since his arrival, John has deployed his
sector experience working alongside our experienced team further
refining our strategy in order to deliver long term, sustainable
growth.
"Our post-period end IP acquisitions in the LiSiS space are
incredibly exciting and give us a more robust platform from which
to develop Performance Additives, while the production of around
1,200 zinc-bromide batteries is a clear sign of the progress being
made as we work towards bringing our products to market.
"We remain committed to creating and delivering long-term value
to our shareholders. Notwithstanding, the unprecedented
macro-economic environment seen in 2022, Gelion's growth drivers
remain strong. Clean technologies will be fundamental to the
transition to a green economy and we are well placed to service
this growing market. We continue along our path to commerciality
and look to the future with confidence, with an experienced
management team, energised workforce, clearly defined market
opportunity and a product set capable of making a tangible
difference."
John Wood, Chief Executive Officer commented: "It has been very
encouraging to work with the Gelion team to develop our planning
toward realizing the potential of both of our technology streams
for our shareholders and other stakeholders.
Recognizing the strength of opportunity opened by the work that
has been done toward unlocking paths to high performance, safety,
and low cost that have been opened by the Gelion Lithium Silicon
Sulfur work we acted quickly to strengthen our program and
protection with the Johnson Matthey IP acquisition following with
the IP acquisition from the University of Sydney.
On the zinc-bromide side, the early production has been very
helpful in defining a work plan toward establishing the best match
to market and the areas of focus to achieve before investing in
scaling. We have a talented team and they have exhibited a strong
willingness to work at the combined levels of creativity and rigour
needed for success in advanced innovation".
Investor presentation
John Wood, CEO, Amit Gupta, CFO and Thomas Maschmeyer, Founder
and Non-Executive Director, will host an interim results retail
investor presentation via the Investor Meet Company platform on 23
March 2023 at 9.30am GMT. The presentation is open to all existing
and potential shareholders and registration can be completed via
the following link:
https://www.investormeetcompany.com/gelion-plc/register-investor
Interim Report
Copies of the Interim Report can be viewed and downloaded from
the Company's website:
https://gelion.com/investors/documents-notices/ .
CONTACTS
Gelion plc via Alma PR
John Wood, CEO
Amit Gupta, CFO
Thomas Maschmeyer, Founder and Principal
Technology Advisor
finnCap Ltd (Nominated Adviser and Sole
Broker) +44 207 220 0500
Corporate Finance
Christopher Raggett
Seamus Fricker
Fergus Sullivan
ECM
Barney Hayward
Alma PR (Financial PR Adviser) +44 20 3405 0205
Justine James gelion@almapr.co.uk
Hannah Campbell
Will Ellis Hancock
About Gelion plc
Gelion ("gel: ion") is a global renewable-energy storage
innovator who supports the transition to a sustainable economy
while delivering value for its customers and investors by designing
and manufacturing the outstanding zinc-bromide batteries for
stationary energy storage and Lithium Sulfur and Lithium Silicon
Sulfur technologies for mobile battery applications.
Mobile storage - Tomorrow's transport systems will rely on
mobile renewable energy. Gelion is developing sulfur cathode,
electrolyte, and additive technologies with the aim of improving
the safety, longevity and energy density of lithium-based batteries
for mobile applications. Using nanotechnology, Gelion's
lithium-silicon-sulfur additives will help power the EV and
e-aviation markets.
Stationary storage - Gelion Endure: the sustainable energy
storage solution.
Gelion has developed patented technology for a breakthrough
zinc-bromide battery to support the transition to a carbon neutral
economy by 2050. The technology is being developed with the goal of
establishing Gelion Zinc Bromide as a logical participant in the
ecosystem of suppliers, manufacturers and customers surrounding
lead acid technology.
Gelion's zinc-bromide gel battery uses non-flow technology,
which is scalable, can deliver 100% depth of discharge and has
potential for higher temperature tolerance and longer duration
discharge than lead-acid batteries.
Gelion was spun-out from the University of Sydney in 2015 by
Professor Thomas Maschmeyer, Fellow of the Australian Academy of
Science and recipient of the Australian Prime Minister's Prize for
Innovation 2020, that country's highest honour for scientific
entrepreneurship.
The Company's ESG credentials are strongly aligned to six of the
UN's 17 Sustainable Development Goals.
Gelion's shares are listed on the AIM market of the London Stock
Exchange and it received the Green Economy Mark at IPO in November
2021 recognising its commitment to energy transition.
www.gelion.com
CEO Statement
I am pleased to report on my first interim results statement as
CEO, since joining the very talented team at Gelion in December
2022.
As I outlined on appointment, the energy storage industry will
perform a crucial role in supporting the global renewable energy
transition. Gelion's core strategy remains focussed on developing
the Company to be a global contender in the energy storage market
while delivering real-world impact through our technology.
The last few months have reinforced my view that Gelion offers
exceptional technology solutions that will ensure the Company
remains a force at the forefront of this fast-moving and highly
competitive space. Our focus is to refine and deliver these
breakthrough technologies in a form suitable for our large target
markets.
I am pleased to report that we have achieved two key milestones
with the successful completion of our first pilot production of our
zinc-bromide cells and significant advancements in the performance
of our performance additive technology.
A match-to-market study for our zinc-bromide technology
generated valuable data, which we will use to further develop our
technology to strategically position our batteries with a
competitive advantage for several core lead-acid applications. The
end market is vast, but it is critical that we deliver a robust and
proven product that meets customer requirements in the target
markets identified.
While Gelion has made significant advancements in our sulfur
cathode development over the last few months, the recent strategic
acquisition of the two intellectual property portfolios, from
Johnson Matthey, and the transfer of previously licensed IP from
the University of Sydney, will provide greater flexibility to
realise the full potential of our technology within the LiSiS
space. We view this space as being the primary business unit for
value growth in the near term. These acquisitions complement and
strengthen Gelion's position within the LiSiS space and provide
significant opportunities to rapidly accelerate the development
toward achieving highly important industry goals of gravimetric
energy density, safety, and lower cost ahead of competing efforts.
They will also help to develop a moat of protection around our work
as its importance progressively becomes more broadly
recognised.
With a view to long term flexibility, market value and business
prospects, Gelion is designing our cell technology which is
intended to be compatible with a variety of anode technologies,
including graphitic, silicon and lithium metal-based anodes.
Gelion has achieved clear operational progress in the first half
of the financial year, building on momentum from the prior year. We
continue to experience strong customer interest in our technology
and continue to develop a strong partnership base that will assist
in fast-tracking our path to commercialisation.
I am encouraged by the progress we have made over the last few
months and am confident that the business plans will deliver
long-term, sustainable growth for the benefit of our
shareholders.
Our Technology
Our technology will help power the transition from fossil fuels
to renewable energy. Gelion is currently developing battery
technologies that will revolutionise the lead-acid and lithium
energy storage markets.
Zinc-Bromide Technology
Our zinc-bromide technology aims to provide a viable alternative
to current lead-acid batteries, which will solve key limitations of
these current technologies. Our technology offers a path to
competitive advantage in the lead-acid battery market by providing
a safer, more sustainable and more durable solution to traditional
lead-acid batteries.
Gelion's zinc-bromide gel battery uses non-flow technology,
which is scalable, can deliver 100% depth-of-discharge with no loss
of function or damage to the battery, and is tolerant of
temperature extremes.
Gelion's zinc-bromide technology has been designed with safety
in mind. Our chemistry is fire resistant and has been engineered to
minimise the risk of thermal runaway, even under deliberate fault
scenarios.
Gelion's battery is distinct from other zinc energy storage
technologies in the market, utilising our proprietary gel
technology. Our technology is well-suited to, and is highly
competitive for adaption to, high-power discharge applications
currently serviced by the lead-acid market.
Lithium-Silicon-Sulfur (LiSiS) Technology
Gelion aims to transform the energy storage industry through its
development of sustainable, high-performance LiSiS batteries that
offer a competitive advantage over traditional lithium-ion
technologies by providing a safer, cost-effective alternative with
superior energy density.
The inherent features of sulfur-based chemistries provide
significant improvements with regards to safety compared to current
technologies. The mechanism by which our batteries operate reduces
the risk of thermal runaway and catastrophic failure, even in the
event of a short-circuit.
There is a strong push to continue to develop technologies with
higher energy densities to continue to drive down the price,
weight, and size of lithium-based battery packs. With the
theoretical gravimetric energy density of LiSiS technologies
predicted to be more than double of that achievable with existing
Nickel Manganese Cobalt ("NMC") graphite-based lithium
batteries.[1] Our LiSiS technology is at the cutting edge of
next-generation lithium energy storage solutions.
Our Strategy
The global battery market is anticipated to increase five-fold
over the next ten years. The lead-acid- and lithium-based batteries
remain key players, comprising around 90% of the total global
energy storage market. Lithium-ion batteries are forecast to reach
a value of US$110 billion (1.3TWh Capacity) by 2030, whilst the
lead-acid market is anticipated to maintain its strong position
with a projected market value of US$49 Billion (480GWh) in
2030[2].
Our strategy is to target both markets with products that are
both commercially viable, to increase shareholder value, and
competitive against current incumbent technologies.
Gelion's core strategy remains committed to growing the Company
to be a leading, renowned innovator of cutting-edge commercial
solutions for the global energy storage market to facilitate the
successful transition to a sustainable economy. Gelion is focussed
on the development of the next generation technologies to ensure
that Gelion will be a force at the forefront of energy storage
technologies and can deliver long-term value to our investors.
Zinc-Bromide Technology
The global push to rapidly decarbonise the electricity sector to
meet net-zero targets has led to a significant acceleration in
demand for stationary, long-duration energy storage (LDES)
solutions. Gelion had initially focused on penetrating this market
with our zinc-bromide technology. However, this market is currently
dominated by Lithium technologies that are well-entrenched.
In-depth assessment has indicated that this would be a difficult
market for Gelion to break into at this stage. It is expected that
there will be a general reluctance by companies to use relatively
untried technologies for large-scale long-duration energy storage
applications, beyond initial pilot testing. Many companies are
looking for solutions that can guarantee lifetimes of 10-20 years
or more. While Gelion has performed rigorous internal testing of
our batteries, the batteries are yet to be tested in real-life
applications beyond the small pilot / demonstration stage.
Without this proven commercial field performance, we believe the
acceptance of our technology could be limited for the LDES space in
the short term and it is, therefore, not prudent to focus on this
sector for commercialisation for the initial product launch. As a
result, the Group has made the decision to pivot towards
alternative storage applications that will enable us to first
establish our technology within the market before exploring
potential LDES applications. This approach will guarantee the
viability of the Group into the future and ensure that we can
deliver long-term value to our shareholders.
As a result of this pivot, Gelion initiated a rigorous
match-to-market exercise to identify key applications where our
technology can readily penetrate and disrupt the current markets.
This process confirmed that there is a greater opportunity for
zinc-bromide technologies to successful penetrate non-LDES
applications and identified the competitive advantage of our
technology for high-discharge applications for several target
applications e.g. Uninterruptible Power Supply (UPS) for data
centres and telecommunications, ESS and other stationery
applications etc. currently dominated by lead-acid technologies.
These target applications have higher battery turnovers and will
embrace new technologies that can provide significant improvements
in battery performance.
The match-to-market study highlighted areas where our technology
needs to be refined in order to better meet key requirements of
potential end customers. One fundamental requirement for all
identified target applications is the capability for high-power
discharge. Gelion will undertake further research and development
activities to further improve the suitability of our battery for
these high-power applications. An additional requirement is toward
the ability to support dynamic cycling patterns without frequent
maintenance cycles. Our zinc cell design currently uses "strip
cycles" where we discharge the cell fully as maintenance. We had
planned to integrate this maintenance transparently to use as an
integrated system function but after market review, we have decided
to reach higher, toward achieving improved cell performance to
reduce/eliminate the maintenance function need. Therefore, our
current focus is on optimising our technology to better meet these
requirements while also engineering for cost improvement to ensure
Gelion can deliver a robust and proven product to our target
markets before investing to scale production. This further
refinement is pivotal to ensuring there is a straightforward
pathway to commercial success.
While this shift in Gelion's commercialisation approach will
require time and investment, the Board believes that this approach
provides both the most effective stewardship of the Company's
resources and the fastest pathway to the successful launch of a new
technology into a highly competitive and mature market, while
leveraging the achievements already made.
Target Applications
Zinc-bromide batteries offer a competitive advantage in several
key market applications currently dominated by lead-acid
technologies, by providing a safer, more sustainable, and more
durable solution. Critical analysis of technological capabilities
identified that our batteries are well-suited for high-power
discharge applications.
Our rigorous match-to-market investigation identified several
target markets where our zinc-bromide technology has significant
market potential. These target markets all have high-power
discharge applications and include Uninterruptible Power Supply
(UPS) for data centres and telecommunications, ESS and other
stationery applications etc. We are currently exploring and
evaluating the market potential and our competitiveness in
additional applications, including motive and other stationary
(excluding LDES) applications.
The target markets are significant, multi-billion-dollar markets
that will provide Gelion with the opportunity to demonstrate the
impact of our technology at a commercial scale and build a solid
foundation that identifies Gelion, and our technology, as a strong
participant in the energy storage market.
Source: CBI Avicenne Report 2021
Lithium-Silicon-Sulfur Technology
The global uptake of lithium-ion technologies continues to grow
rapidly, with demand for these batteries forecast to grow roughly
700% to 3.5TWh per year by 2030.[3] There is a strong push to
develop alternative lithium-based technologies with higher energy
densities to continue to drive down the price, weight and size of
lithium-based battery packs.
Gelion's lithium team has focussed on developing sulfur-based
cathodes that can be coupled with existing lithium-ion and
lithium-silicon anode technologies to provide a battery with
improved safety and increased energy density at a reduced cost
compared to traditional lithium batteries. This presents a
compelling commercial proposition with a range of viable
applications, including electric vehicles, e-aviation, and
drones.
Gelion's innovative sulfur-based cathode aims to solve some of
the current challenges with lithium-sulfur technologies, including
the provision of a sulfur management solution. As communicated in
December 2022, we made substantial progress, achieving 300 usage
cycles with less than 20% capacity loss with our additives in
half-cells, which is a significant improvement compared to the less
than 100 cycles achievable for cells without an additive.
Gelion is accelerating its research in this area and is
commencing early stages of full cell testing, with a goal to
develop a LiSiS battery by pairing our innovative cathode
technology with a silicon-based anode. While initial research will
focus on a LiSiS battery, our technology is being developed to
ensure future flexibility and intended to have intrinsic
compatibility to lithium metal, graphitic, and silicon-based anode
technologies. As part of our development strategy Gelion has
acquired two IP portfolios that significantly strengthen our market
position. With this acquisition, we now have access to a range of
innovative technologies that enable us to pursue multiple pathways
of cell development, allowing us to deliver superior products and
services to our customers. In addition, this portfolio provides us
with the ability to prevent others from adopting various Lithium
Sulfur design solutions, furthering our opportunity to cement our
position as a leading player in the industry.
Gelion primary focus will be on the development of key aspects
where we already possess strong research capabilities, including
further cathode development, electrolyte formulation and cell
design. Gelion is currently seeking to form partnerships with
leading silicon anode innovators to fast-track the development of a
commercially viable LiSiS battery solution and capitalise in a
rapidly evolving market.
Gelion, in partnership with other major industry participants,
is exploring the potential to establish pilot scale manufacturing
capabilities within the LiSiS space.
Post-period end
Lithium-based Intellectual Property Acquisitions
-- IP portfolio acquisition from Johnson Matthey
On 9 March 2023, Gelion announced the acquisition of a
significant IP portfolio from Johnson Matthey, a British
multinational chemicals and sustainable technologies company. This
portfolio consists of over 450 granted patents, based on 82
families, and applications covering a broad variety of
lithium-based battery inventions, as well as Johnson Matthey's
silicon alloy development programme, technology transfer packages,
market and portfolio analysis, and manufacturing design and cost
models. Significantly, this acquisition included the complete IP
portfolio from Oxis Energy Limited, which was a world leading
lithium-sulfur battery innovator, and covers various essential
aspects of lithium-sulfur technologies. However, we recognise that
one significant challenge in this field is sulfur management, which
if left unaddressed, can lead to batteries with poor durability and
reduced commercial feasibility. Combining this portfolio with
Gelion's existing portfolio, i.e. a core strength around
cutting-edge sulfur management strategies, consolidates Gelion's
position in the highly competitive lithium-sulfur battery
space.
With Gelion's current focus on the development of sulfur
cathodes, the Group is in advanced discussions for the sale of the
silicon anode-based IP portfolio, to a third party, resulting in a
net cost of GBP3 million to Gelion for the Johnson Matthey IP
acquisition.
-- IP acquisition from University of Sydney
The Johnson Matthey IP portfolio acquisition was followed
shortly afterwards by the acquisition of intellectual property
assets from the University of Sydney. This involves the transfer of
patents, technical information and future improvements relating to
sulfur cathodes to Gelion. This IP was previously licensed by
Gelion, and, through our research activities, we have made
considerable progress in the further development of this
technology. This acquisition gives Gelion greater control over
future development opportunities and opens up new commercialisation
pathways, ensuring that Gelion can fully exploit this
ground-breaking technology.
One of Gelion's core principles is to establish a strong and
resilient IP portfolio, which strengthens Gelion's position and
provide effective protection to retain our competitive advantage in
the energy storage market. While Gelion continues to generate new
IP and know-how through our research and process development
activities, the two acquisitions outlined above are strategically
significant to Gelion's growth strategy in the LiSiS market and
future commercialisation plans. These acquisitions will enhance and
further strengthen our IP portfolio, while also facilitating a
rapid acceleration in the development of our next-generation LiSiS
technology.
Supercharge Australia Innovation Challenge
Gelion has been selected to participate in the Supercharge
Australia Innovation Challenge. Supercharge Australia is a project
of the partnership project between the not-for-profit startup
support organisations New Energy Nexus globally and EnergyLab in
Australia and New Zealand. New Energy Nexus has offices in 11
countries and is head-quartered in the US, and EnergyLab is the
leading local climate and clean energy tech startup support
organisation, both supporting clean energy entrepreneurs with
funds, accelerators, and networks.
A key purpose of Supercharge Australia is to bring the
Australian industry together to understand where innovation is
required and leverage New Energy Nexus' global expertise, including
its role in the US Department of Energy's Lithium Bridge project
combined with EnergyLab's leading Australian startup support
expertise to accelerate the development of a robust and secure
domestic supply chain for lithium-based batteries and associated
businesses. Gelion aims to use the initiative to extend visibility
and understanding of the strength, relevance, and ultimate
potential of its LiSiS initiative and to help further develop
important connections inside the Australian and Global supply
chain.
Zinc-Bromide Cell Manufacture
Gelion has successfully manufactured approximately 1,200
gel-based zinc-bromide cells on our first industrial pilot line.
This pilot line was developed in partnership with Battery Energy
Storage Solutions Pty Ltd and has generated learnings that provide
valuable insight into the scaled production of our technology.
While these cells have passed initial testing using a cell
evaluation regime develop by Gelion, this testing was not completed
using analogous conditions to those expected during an in-field
validation trial.
Gelion is committed to delivering products that meet customer
needs and expectations. Rigorous testing and end-to-end validation
of our zinc-bromide cells have started using equivalent conditions
and infrastructure that will be utilised in the trial. Our
batteries will be deployed for independent in-field validation
trial only after the successful completion of this internal
testing.
As part of this trial, Gelion has developed and implemented a
more advanced battery management system (BMS) that has been
designed to allow for high accuracy measurements of the batteries.
Our BMS has been intentionally designed to be compatible with other
battery chemistries. We are continuing to develop a robust BMS
software to manage multi-string systems and provide reliable data
for real-time data analysis. This will provide invaluable
information regarding our technology's battery performance during
real-world application.
FY23 Outlook
We have made significant progress in H1 FY23 with the launch of
the pilot manufacturing facility, first production of the
zinc-bromide batteries, and technological developments made by the
team in both product categories; I am excited to have joined a
business with huge growth opportunities and such an innovative
team.
Within the LiSiS market, we are accelerating development
supported by the most recent IP acquisition to further consolidate
our position in this market and focusing on developing our strong
partnership base that will assist in fast-tracking our path to
commercialisation.
Gelion has now successfully manufactured approximately 1,200
zinc-bromide cells for the Acciona trial from our pilot
manufacturing line and in the near term, we will focus on
developing a robust BMS software to ensure accurate and timely
data.
Our aim is to develop zinc-bromide cells towards product
optimisation and cost management, building on the great work
already done by the Gelion team to establishing the best match to
market and the areas of focus to achieve before investing in
scaling.
It has been a strong first half for Gelion and with the global
renewable energy transition accelerating at pace, we are confident
in our ability to deliver / achieve FY results in line with
expectations.
John Wood
CEO
16 March 2023
CFO Statement
H1 FY23 has been a period of significant evolution for Gelion
across all fronts with strides made in terms of technological
development, adapting and learning during the setup of the pilot
manufacturing facility, identifying the right target market best
suited for our zinc-bromide batteries, making significant inroads
into the Lithium Silicon Sulfur space, organic and inorganic
initiatives which are all steps towards delivering a commercial
product to suit our customer needs.
Interim results
The results for the six months ended 31 December 2022 reflect
the ongoing efforts towards product development, industrial
production of Gelion zinc-bromide cells, BMS development and costs
incurred towards the Acciona trial - Phase 1 and phase 2.
Revenue
Consistent with the historical periods, our policy is to
recognise any R&D tax incentive income at year-end only which
in our case is June. Given the importance of getting these claims
accurately filed with the Australian Taxation Office (ATO), we only
recognise these once the detail work supporting these incentive
claims is finalised by the team, reviewed, signed off by an
independent advisor and finally, the auditors.
Adjusted EBITDA loss
Adjusted EBITDA loss for the period was GBP4.4m (H1 FY22 EBITDA
loss: GBP2.3m). The increase in the losses were driven by:
-- Additional costs of being a public company (prior period
costs were largely as a private company);
-- Investment in strengthening our capability by increasing
average headcount to 51 in H1 FY23 (H1 FY22: 28) to support
development of chemistry (scientists and chemical engineers),
manufacturing (mechanical engineers), and strategy execution
(executive and commercial team) for both zinc-bromide
and LiSiS batteries;
-- Ongoing and new R&D activities; and
-- Expenses incurred in the ongoing manufacturing and BMS
development activities related to the Acciona trial project
including utilising labour hire staff.
Balance sheet
The Company has a strong balance sheet to continue its
development program
-- Cash and cash equivalents (incl. term deposits) at period
end: GBP14.4m (June 22: GBP17.0m)
-- No debt on the balance sheet
FY23 Outlook
Gelion will continue to pursue its rigorous cost management and
capital deployment strategy however strategic decisions to
accelerate development and commercialisation such as the Johnson
Matthey IP acquisition to maximise shareholder return will be taken
by the board.
With an efficient cost base and a debt free balance sheet, we
are well placed to deliver a result for FY23 which is in line with
our expectations and we are confident about the long-term prospects
for the Group.
It is also worth noting that whilst disruptions from COVID-19
continue to decline, the associated macroeconomic challenges are
still ongoing and are impacting businesses globally e.g. inflation,
higher interest rates, supply chain disruptions, increased freight
costs, employee remuneration. These have significantly increased
cost of doing business globally and companies including Gelion, are
not immune from this.
Keeping the above in mind, I am very pleased to confirm that we
continue to be well capitalised and are progressing the
developments as planned. Our guidance for the full FY23 is largely
in line with our expectations at the time of the IPO.
Amit Gupta
CFO
16 March 2023
Consolidated Statement of Comprehensive Income (unaudited)
Notes Six months Six months
ended 31 ended 31
Dec 2022 Dec 2021
GBP'000 GBP'000
UNAUDITED UNAUDITED
Revenue from contracts with customers - -
Other income - -
Total income - -
Administrative expenses 3 (2,348) (1,255)
Share-based payments (181) (49)
Research and development expenditure 4 (2,294) (1,127)
============================================================= ====== =========== ===========
Operating loss before listing and other
associated costs (4,823) (2,431)
Listing and other associated costs 5 - (4,481)
============================================================= ====== =========== ===========
Operating loss (4,823) (6,912)
Finance costs (2) (45)
Finance income 76 -
============================================================= ====== =========== ===========
Loss on ordinary activities before taxation (4,749) (6,957)
Tax on loss on ordinary activities - -
============================================================= ====== =========== ===========
Loss on ordinary activities after taxation (4,749) (6,957)
============================================================= ====== =========== ===========
Total loss for the year attributable to
equity holders of the parent
Other comprehensive income:
Items that may be reclassified to profit
or loss
* Exchange gains/(losses) arising on translation of
foreign operations (42) 157
============================================================= ====== =========== ===========
Total comprehensive loss for the year
attributable to equity holders of the
parent (4,791) (6,800)
============================================================= ====== =========== ===========
Loss per share (basic and diluted) attributable
to the equity holders (pence) 6 (4.40) (7.50)
============================================================= ====== =========== ===========
The above results relate entirely to continuing activities.
There were no acquisitions or disposals of businesses in the
period.
Consolidated Balance Sheet (unaudited)
Notes 31 Dec 2022 30 June
GBP'000 2022
UNAUDITED GBP'000
AUDITED
Assets
Non-current assets
Intangible assets 389 362
Property, plant and equipment 1,254 1,050
Current assets
Cash and cash equivalents 8,210 16,024
Short-term investments (term deposits) 6,230 1,017
Other receivables 446 2,153
======================================== ====== ============ =========
Total Assets 16,529 20,606
======================================== ====== ============ =========
Liabilities
Current liabilities
Trade and other payables 1,384 854
Non-current liabilities
Trade and other payables 31 31
======================================== ====== ============ =========
Total liabilities 1,415 885
======================================== ====== ============ =========
Net assets 15,114 19,721
======================================== ====== ============ =========
Equity
Issued capital 7 108 107
Share premium account 7 20,662 20,662
Other non-distributable reserves 7 2,944 5,148
Capital reduction reserve 7 11,194 11,194
Accumulated losses (19,794) (17,390)
======================================== ====== ============ =========
Total equity 15,114 19,721
======================================== ====== ============ =========
Consolidated Statement of Cash Flows (unaudited)
Six months Six months
ended 31 Dec ended 31 Dec
2022 2021
GBP'000 GBP'000
UNAUDITED UNAUDITED
Cash flow from operating activities*
Loss for the year before exchange losses (4,749) (6,957)
Adjustments for:
* Depreciation 199 133
* Amortisation 6 6
2 -
* finance costs
(19) -
* finance income
* share-based payments expense 181 3,826
Changes in operating assets/liabilities
* Decrease / (increase) in receivables 1,707 963
* Increase / (decrease) in payables 522 125
========================================================= ============== ==============
Net cash used in operating activities (2,151) (1,904)
Cash flows from investing activities
Purchase of intangible assets (34) (31)
Purchase of tangible property, plant
and equipment (371) (162)
Short-term investments (term deposits) (5,213) (27)
Interest received 19 -
======================================================== ============== ==============
Net cash used in investing activities (5,599) (220)
Cash flows from financing activities*
Proceeds from issue of shares 1 16,196
Proceeds on issue of convertible loan
notes that were subsequently converted - 5,999
Transaction costs of issue of shares* - (1,520)
Repayment of leasing liabilities (23) (61)
========================================================= ============== ==============
Net cash used in financing activities (22) 20,614
Net increase/(decrease) in cash held (7,772) 18,490
Cash and cash equivalents at beginning
of financial year 16,024 1,913
Effect of exchange rate changes (42) 157
========================================================= ============== ==============
Cash and cash equivalents at end of
reporting period 8,210 20,560
========================================================= ============== ==============
* The Company has reclassified transaction costs related to the
issue of shares for the financial year 2022 as originally reported
in the Annual Report, from operating activities to financing
activities. The net effect of this reclassification for the
financial year 2022 is a decrease of GBP805k in cash flow from
operating activities and an increase in cash flow from financing
activities by the same amount, therefore no net impact.
Consolidated Statement of Changes in Equity (unaudited)
Capital Other
Share Share Accumulated reduction non-distributable
capital premium losses reserve reserves Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 July
2021 33 11,251 (8,389) - 691 3,586
Total comprehensive
loss for the period - - (6,957) - 157 (6,800)
======================== ========= ========= ============ =========== =================== ========
Contributions by
and distributions
to owners:
Bonus issue 57 (57) - - - -
Capital reduction - (11,194) - 11,194 - -
Share-based payment
charge - - - - 3,826 3,826
Shares issued during
the period 17 22,025 - - - 22,042
Costs of shares issued - (1,520) - - - (1,520)
Exercise of share
options - 153 141 - (141) 153
======================== ========= ========= ============ =========== =================== ========
Balance at 31 Dec
2021 107 20,658 (15,205) 11,194 4,533 21,287
======================== ========= ========= ============ =========== =================== ========
Balance at 1 Jan
2022 107 20,658 (15,205) 11,194 4,533 21,287
Total comprehensive
loss for the period - - (2,200) - 556 (1,644)
======================== ========= ========= ============ =========== =================== ========
Contributions by
and distributions
to owners:
Share-based payment
charge - - - - 76 76
Costs of shares issued - (21) - - - (21)
Exercise of share
options - 25 17 - (17) 25
======================== ========= ========= ============ =========== =================== ========
Balance at 30 June
2022 107 20,662 (17,388) 11,194 5,148 19,723
======================== ========= ========= ============ =========== =================== ========
Balance at 1 July
2022 107 20,662 (17,388) 11,194 5,148 19,723
Total comprehensive
loss for the period - - (4,749) - (42) (4,791)
======================== ========= ========= ============ =========== =================== ========
Contributions by
and distributions
to owners:
Share-based payment
charge - - - - 181 181
Shares issued during
the period 1 - - - - 1
Forfeited / cancelled
share options - - 2,343 - (2,343) -
======================== ========= ========= ============ =========== =================== ========
Balance at 31 Dec
2022 108 20,662 (19,794) 11,194 2,944 15,114
======================== ========= ========= ============ =========== =================== ========
Notes to The Consolidated Financial Statements
1. General Information
Gelion Plc ('Gelion' or the 'Company') is a 100% owner of an
Australian subsidiary that conducts research and development in
respect of an innovative battery system and associated industrial
design and manufacturing.
Gelion is a public limited company, limited by shares,
incorporated and domiciled in England and Wales. The Company was
incorporated on 26 September 2015. The registered office of the
Company is at 3(rd) Floor, 141-145 Curtain Road, London, EC2A 3BX.
The registered company number is 09796512.
Gelion Plc was incorporated as Gelion UK Ltd. On 12 November
2021, the Company was re-registered as a public limited company
under the Companies Act and its name was changed to Gelion plc.
The Board, Directors and management referred to in this document
refers to the Board, Directors and management of Gelion.
2. Accounting Policies
2.1 Basis of preparation
These interim consolidated financial statements have been
prepared in accordance with IAS 34 Interim Financial Reporting.
They do not include all disclosures that would otherwise be
required in a complete set of financial statements and should be
read in conjunction with the 2022 annual report.
2.2 Going concern
The Directors believe that the Company has adequate resources to
continue trading for at least 12 months from the date of approval
of this report. Accordingly, they continue to adopt the going
concern basis in preparing the Interim Financial Statements.
2.3 Earnings per share
Basic earnings/loss per share
Basic earnings/loss per share is calculated by dividing:
-- the profit or loss attributable to owners of Gelion Plc,
excluding any costs of servicing equity other than Ordinary Shares;
by
-- the weighted average number of Ordinary Shares outstanding
during the financial year, adjusted for bonus elements in Ordinary
Shares issued during the financial year.
Diluted earnings/loss per share
Diluted earnings/loss per share adjusts the figures used in the
determination of basic earnings/loss per share to take into
account:
-- the after-income tax effect of interest and other financing
costs associated with dilutive potential Ordinary Shares; and
-- the weighted average number of shares assumed to have been
issued for no consideration in relation to dilutive potential
Ordinary Shares.
2.4 Share-based payments
The Group provides benefits to its employees in the form of
share-based payments, whereby employees render services in exchange
for shares or rights over shares (equity-settled transactions) in
the parent entity.
The cost of these equity-settled transactions with employees is
measured by reference to the fair value of the equity instruments
at the date at which they are granted. The fair value is determined
using a Black- Scholes model. This calculation is completed by the
parent entity.
The cost of these equity-settled transactions is recognised as
an expense, with a corresponding increase in equity, over the
period in which the service conditions are fulfilled (the vesting
period), ending on the date on which the relevant employees become
fully entitled to the award (the vesting date).
At each subsequent reporting date until vesting, the cumulative
charge to profit and loss is the product of:
-- the grant date fair value of the award;
-- the current best estimate of the number of awards that will vest;
-- the expired portion of the vesting period; and
-- the removal of any fair value attributable to share options
that have contractually lapsed, expired, cancelled or
forfeited.
The charge to profit and loss for the period is the cumulative
amount as calculated above less the amounts already charged in
previous periods. There is a corresponding entry to the share-based
payment reserve in equity.
If a share-based payment arrangement is modified, the minimum
expense recognised over the vesting period is the original fair
value. If the modification increases fair value, the additional
fair value is recognised over the remaining vesting period.
Share-based payments deemed non-recurring
The Group operated a share option plan whereby employees and key
service providers were granted options over shares in Gelion UK
Limited. Due to the Company's admission to trading on AIM which
took place on 30 November 2021 all unvested options were vested
triggering an accelerated share-based payment expense.
In addition to the existing share option plan the Group agreed
to grant options over Ordinary Shares pursuant to obligations under
the service agreements with the relevant individuals. These service
agreement obligations were triggered by admission to trading on
AIM. The service condition was to be employed with a company in the
Group at vesting.
Both the acceleration of option vesting and additional options
granted pursuant to service agreement obligations are triggered by
the Company's admission to AIM and therefore can be considered as
part of the same non-recurring event.
2.5 Foreign currency translation
The functional currency of each company in the Group is that of
the primary economic environment in which the entity operates.
Monetary assets and liabilities denominated in foreign currencies
are translated into GBP at the rates of exchange ruling at the
period end. Transactions in foreign currencies are recorded at the
rate ruling at the date of the transaction.
All differences are taken to the Statement of Comprehensive
Income. On consolidation, the assets and liabilities of the Group
entities that have a functional currency different to the
presentational currency are translated into GBP at the closing rate
at the date of the Statement of Financial Position. Income and
expenses for each statement of profit or loss are translated at
average exchange rates for the period. Exchange differences are
recognised in other comprehensive income and accumulated in a
foreign exchange translation reserve.
2.6 Critical accounting judgements and key sources of estimation uncertainty
R&D tax incentives
From 1 July 2011, the Australian Taxation Office has provided a
tax incentive, in the form of a
refundable tax offset of 43.5%, for eligible research and
development expenditure. The Group recognises a receivable for
R&D tax incentive at the year-end only based on total eligible
expenditure incurred during the year. As such, no R&D tax
incentive receivable has been recognised for the period ended 31
December 2022.
3. Administrative Expenditure
Administrative expenditure includes personnel and related costs
(including salaries, benefits and payroll tax) and costs associated
with external consultancy services, as well as depreciation.
4. R&D Expenditure
R&D expenditure includes personnel and related costs
(including salaries, benefits and payroll tax) and costs associated
with product research, design and development.
5. Listing and Other Associated Items
Six months Six months
ended 31 ended 31
Dec 2022 Dec 2021
GBP'000 GBP'000
UNAUDITED UNAUDITED
Non-recurring items - listing costs - 401
Non-recurring items - share-based payments
accelerated due to listing - 3,777
Non-recurring items - key management bonus
due to listing - 303
Total non-recurring items - listing and other
associated costs - 4,481
============ ===========
During the six months ended 31 December 2021, certain costs were
incurred in the period relating to the Company converting from a
private to public limited company, its subsequent admission to AIM,
issuance and sale of shares and associated professional costs.
As set out in the Admission Document, 11,063,679 new Ordinary
Shares were issued and 2,068,966 existing shares were sold. The
Company's conversion and subsequent admission to AIM is a one-off
event and therefore considered 'non-recurring'.
These non-recurring expenses are therefore separately disclosed
to assist the user of the financial information to understand and
compare the underlying results of the Company .
6. Loss Per Share
Six months Six months
ended 31 ended 31
Dec 2022 Dec 2021
UNAUDITED UNAUDITED
Loss after tax GBP4,749,000 GBP6,957,000
Weighted average number of shares (number) 107,577,979 92,744,562
Loss per share (pence) 4.4p 7.5p
============================================ ============= =============
The calculation of the loss per share is based on the loss for
the financial period after taxation of GBP4,749,000 (2021:
GBP6,957,000) and on the weighted average of 107,577,979 (2021:
92,744,562) Ordinary Shares in issue during the period.
There were 5,657,795 share options outstanding as of 31 December
2022 (30 June 2022: 7,562,795) under the original share option. In
the six months to 31 December 2022, 1,905,000 options were
forfeited / cancelled, most of which relates to the ex-CEO.
The Group introduced the new share option plan during the period
and a total of 255,951 options were granted to employees in August
2022. In addition, 2,704,000 share options were granted to new CEO
as part of his employment agreement. As a result, total outstanding
options as of 31 December 2022 were 8,617,746 (original share
option plan: 5,657,795; new share option plan: 2,959,951).
The impact of these options would be to reduce the diluted loss
per share and therefore they are antidilutive. Hence, the diluted
loss per share reported for the periods under review is the same as
the earnings per share.
7. Issued Capital and Reserves
Share capital and premium
Number of shares Share
Ref. on issue capital premium
GBP'000 GBP'000
Balance as at 1 July 2021 a 4,494,196 33 11,251
Bonus issues and reorganisation b 85,389,724 57 (57)
Capital reduction c - - (11,194)
Shares issued during the
period d 11,063,679 11 16,032
Loan notes converted to
equity e 5,516,240 6 5,993
Cost of shares issued f - - (1,520)
Exercise of share options 560,000 - 153
================= ======== ==========
Balance as at 31 Dec 2021 107,023,839 107 20,658
================= ======== ==========
Cost of shares issued - - (21)
Exercise of share options 111,000 - 25
================= ======== ==========
Balance as at 30 June
2022 107,134,839 107 20,662
================= ======== ==========
Shares issued during the
period g 1,026,515 1 -
Balance as at 31 Dec 2022 108,161,354 108 20,662
================= ======== ==========
a) Gelion had two classes of share at 1 July 2021 - A Ordinary
and B Ordinary which ranked pari passu.
At 30 June 2021 there were 3,335,196 A Ordinary Shares of
GBP0.01 each.
At 30 June 2021 there were 1,159,000 B Ordinary Shares of
GBP0.0000086 each.
b) On 2 September 2021, the Company consolidated the 1,159,000 B
Ordinary Shares of GBP0.0000086 each into 1,000 B Ordinary Shares
of GBP0.01 each, on the basis of one B Ordinary Share of GBP0.01
for every 1,159 B Ordinary Shares of GBP0.0000086 held on the
record date (the 'B Share Consolidation').
On 2 September 2021, following the B Share Consolidation, the
Company issued 1,158,000 new B Ordinary Shares of GBP0.01 each by
way of a bonus issue to the holders of such shares on the basis of
1,158 B Ordinary Shares for each one B Ordinary Share held on the
record date (the 'First Bonus Issue').
On 3 September 2021, following completion of the First Bonus
Issue, the Company issued 3,335,196 A Ordinary Shares of GBP0.01
each and 1,159,000 B Ordinary Shares of GBP0.01 each pursuant to a
bonus issue of such shareholders on the basis of one A Ordinary
Share for each A Ordinary Share held and one B Ordinary Share for
each B Ordinary Share held, in each case on the record date (the
'Second Bonus Issue').
c) Immediately following the Second Bonus Issue, a capital
reduction was undertaken and the balance standing to the credit of
the share premium account was cancelled and the amount so cancelled
was credited to a distributable reserve.
On 12 November 2021, the A Ordinary Shares of GBP0.01 each in
the capital of the Company and the B Ordinary Shares of GBP0.01
each in the capital of the Company then in issue were redesignated
as Ordinary Shares of GBP0.01 each in the capital of the Company
carrying the rights and subject to the restrictions attaching to
the Ordinary Shares of the Company as set out in the Articles (the
'Re-designation')
On 13 November 2021, the Company sub-divided each Ordinary Share
of GBP0.01 each arising from the Re-designation into ten new
Ordinary Shares of GBP0.001 each.
d) Immediately prior to admission to AIM the Company had
89,883,920 shares in issue. 11,063,679 new Ordinary Shares of
GBP0.001 each were issued in the fundraising following admission to
AIM.
e) On 30 November 2021, a convertible debt instrument was fully
converted into 5,516,240 Ordinary Shares of GBP0.001 each.
f) Transaction costs incurred in the issuing of shares in the
period ended 30 June 2022 of GBP2,346,000 (2021: GBPnil) of which
GBP1,541, 000 have been offset against share premium and GBP805,000
have been expensed.
g) On 19 October 2022, 1,026,515 Ordinary Shares of GBP0.001
each were issued to ex-CEO Andrew Grimes (related party
transaction) in exchange for relinquishing 1,830,000 options that
had vested.
Nature and purpose of other reserves
Other reserves
- Share-based payments reserve
The share-based payments reserve is used to recognise the value
of equity-settled share-based payments provided to employees,
including key management personnel, as part of their remuneration.
Refer to note 8 for further details of these plans.
During the period, 1,830,000 vested options were forfeited in
exchange for shares issued to ex-CEO Andrew Grimes. The fair value
of the forfeited / cancelled options recognised in share-based
payment reserve to 31 December 2022 was GBP2,342,775, the majority
of which (GBP2,324,100) related to Andrew Grimes forfeited
options.
- Foreign currency translation reserve
The subsidiary's functional currency is AUD and therefore on
consolidation a foreign exchange gain or loss on translation of net
assets is recognised through other comprehensive income at each
reporting date. These gains or losses are accumulated in a foreign
currency translation reserve.
- Capital reduction reserve
Immediately following the Second Bonus Issue, the balance
standing to the credit of the share premium account was cancelled
and the amount so cancelled was credited to a distributable reserve
called the 'capital reduction reserve'.
Other non-distributable reserves:
Foreign currency Total
Share-based translation other
payment reserve reserve reserves
GBP'000 GBP'000 GBP'000
Balance at 1 July 2021 892 (201) 691
Foreign currency translation reserve
movement - 157 157
Share-based payment charge 3,826 - 3,826
Exercise of options (141) - (141)
Balance at 31 December 2021 4,577 (44) 4,533
================= ================= ==========
Foreign currency translation reserve
movement - 556 556
Share-based payment charge 76 - 76
Exercise of options (17) - (17)
Balance at 30 June 2022 4,636 512 5,148
================= ================= ==========
Foreign currency translation reserve
movement - (42) (42)
Share-based payment charge 181 - 181
Forfeited / cancelled share options (2,343) - (2,343)
Balance at 31 December 2022 2,474 470 2,944
================= ================= ==========
8. Share-Based Payments
The Directors recognise the role of the Group's staff in
contributing to its overall success and the importance of the
Group's ability to incentivise and motivate its employees.
Therefore, the Directors believe that certain employees should be
given the opportunity to participate and take a financial interest
in the success of the Company.
In prior years, the Group operated a Share Option Plan whereby
employees and key service providers were granted options over
shares in Gelion UK Limited. Due to the Company's admission to
trading on AIM which took place on 30 November 2021 all unvested
options were vested triggering an accelerated share-based payment
expense.
In addition to the existing Share Option Plan, the Group agreed
to grant options over Ordinary Shares pursuant to obligations under
the service agreements with the relevant individuals. These service
agreement obligations were triggered by admission to trading on
AIM. The service condition is to be employed with a company in the
Group at vesting. Both the acceleration of option vesting and
additional options granted pursuant to service agreement
obligations are triggered by the Company's admission to AIM and
therefore can be considered as part of the same non-recurring
event.
In July 2022, the Board introduced a new Share Option Plan. The
plan is designed to motivate and incentivise key talent to assist
the Group in achieving its strategic aims whilst remaining
consistent with its tolerance for risk, all set within delegated
limits set out during the recent IPO .
These options are structured as nominal cost options. The
options will normally vest in three equal tranches over three
years, subject to continued employment.
On 21 November 2022, 255,951 options were granted that will vest
in three equal tranches, the first anniversary is 31 August 2023,
followed by annual vesting on 31 August 2024 and 31 August 2025.
The options were granted with the exercise price of 0.1 pence and
will be exercisable up to the tenth anniversary of the grant.
On 8 December 2022, 2,704,000 options granted to Mr John Wood
and these will vest in three tranches as follows: 12 months from
grant date 1,622,400, 24 months from grant date 540,800 and 36
months from grant date 540,800. The options were granted with the
exercise price of 0.1 pence and are exercisable up to the fifth
anniversary of the grant .
Six months Six months
ended 31 ended 31
Dec 2022 Dec 2021
GBP'000 GBP'000
UNAUDITED UNAUDITED
Recurring share-based payment expense recognised 181 49
Non-recurring share-based payment expense recognised - 3,777
=========== ===========
Total share-based payment expense 181 3,826
=========== ===========
9. Events subsequent to period end
Post 31 December 2022, Gelion has made the following
acquisitions. The below summarises the details of these
acquisitions including the impact on the financial information.
1. Johnson Matthey IP acquisition
On 9 March 2023, Gelion signed an agreement to acquire a
world-leading IP portfolio in a range of next generation battery
material technologies from Johnson Matthey, a British multinational
chemicals and sustainable technologies company. The Company
acquired the entire LiSiS patent portfolio for GBP4.25 million
which includes over 450 patents across 82 patent families. This
transaction will be funded from the cash resources of the
Company.
With the Group's focus on sulfur cathodes, Gelion is in advanced
discussions to sell a subset of patents (73 patents across 17
patent families) as well as applications relating to silicon anode
to a third party for c.GBP1.25 million. Should the third-party sale
being successful, the net cash impact will be c.GBP3 million.
2. Lithium Sulfur IP acquisition from University of Sydney
On 13 March 2023, Gelion acquired the University of Sydney's
("University") Lithium Sulfur IP for a total consideration of
AUS$130,000, which was satisfied by the issue of 171,396 ordinary
shares in Gelion plc (the "Consideration Shares") at a price of
42.83 pence which are expected to be admitted on or around 17 March
2023.
On the issue of shares, the University will transfer to Gelion
plc the patents, the technical information and any improvements in
relation to sulfur cathodes (including suitable additives and
electrolytes), including all of its right, title and interest in
any improvement to date and in the future, created by the
University or its associates.
This acquisition converts Gelion's existing exclusive licence
with the University to use its Lithium Sulfur technology within its
additives business to create LiSiS batteries.
[1] Wu and Yushin, Energy Environ. Sci., 2017, DOI:
10.1039/c6ee02326f
[2] Avicenne Energy for CBI 2021
[3] Source: BNEF, Long-term Electric Vehicle Outlook 2022.
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