Argo Graphene finalizes agreement with Grapherry and provides management update

Argo Graphene Solutions Corp. has finalized a license agreement with Grapherry, Inc. for the STREAM graphene production platform and associated intellectual property. This agreement grants Argo an exclusive global license to utilize, develop, manufacture, and commercialize the technology for a decade. Upon fulfilling specific conditions, full ownership of the technology will transfer to Argo.

As part of the agreement, Argo will issue up to 11,000,000 common shares and 5,500,000 share purchase warrants to Grapherry. Initially, Argo issued 2,500,000 common shares and all 5,500,000 warrants, with the remaining shares to be issued upon meeting certain milestones. These include completing a CAD $1,000,000 equity financing, commissioning a graphene production facility, and achieving CAD $1,000,000 in revenue from the technology.

The warrants, exercisable at CAD $0.75 per share for five years, will vest in tranches aligned with the milestones. Argo will seek shareholder approval if share issuance results in a control person. Grapherry's warrant exercise is capped at 19.99% ownership without prior approval.

Grapherry, Inc., a U.S.-based company, specializes in graphene production technologies and products for industrial applications. Its STREAM platform aims to produce high-quality graphene from carbon-based feedstocks using scalable methods for commercial manufacturing.

In conjunction with the agreement, Argo issued 400,000 common shares to a consultant for advisory services. All shares and warrants are subject to a four-month hold period expiring on October 25, 2026.

Grapherry acquired 2,500,000 common shares and 5,500,000 warrants, representing approximately 9.09% of Argo's shares on an undiluted basis. On a partially diluted basis, assuming full warrant exercise, Grapherry would control about 24.24% of Argo's shares. Grapherry may adjust its holdings based on market conditions and other factors.

Vikas Berry, CEO of Grapherry, joins Argo's board following the agreement's closure. Scott Smale has resigned as Director and CEO of Argo, with Sean McAlpine stepping in as interim CEO while a successor is identified.

Argo Graphene Solutions Corp. focuses on developing graphene-enhanced technologies for construction, infrastructure, agriculture, and industrial manufacturing. The company aims to enhance material performance in various applications through strategic partnerships and technology acquisitions.