Graphex Group Limited (GGL)
(Note: This is NOT an IPO. This is an NYSE American uplisting – a public offering of American Depositary Shares (ADS) – in an uplisting from the OTCQX market. IPOScoop has NO CALL on uplistings. Graphex Group Limited is incorporated in the Cayman Islands. Its principal office is in Hong Kong. It has a subsidiary office in Royal Oak, Michigan.)
Public offering details from the prospectus: “Each ADS represents 20 ordinary shares of GGL, par value HK$0.01 per share. We expect the public offering price of the ADSs to be based on the between [$ ] and [$ ] per share. The public offering price per ADS will be determined through negotiation between us and the underwriters in the offering and may be at a discount to the current market price of the ADSs on the OTCQX. Currently, these ordinary shares are traded on the Hong Kong Stock Exchange with the stock number of 6128.HK and ADSs are traded on the OTC Market under the symbol GRFXY. GGL has applied to have the ADSs listed on the NYSE American LLC stock exchange market (“NYSE American”) under the symbol “GRFX.” “
GGL is a holding company with two significant business segments — (1) graphene products and related businesses, including battery storage solutions for clean energy that deliver reliable and cost-competitive power in a safe and environmentally sustainable way for electric vehicles (“EV”) and renewable power producers; and (2) other businesses (a landscape architecture and design business as well as a catering business; the catering business has been largely suspended due to the COVID-19 pandemic).
We are a leading manufacturer of natural spherical graphite and specialized graphite products that are used primarily in lithium-ion (“Li-ion”) batteries typically for electric vehicles and clean energy storage solutions. Graphene is a one-atom-thick layer of graphite, a commonly found mineral. Graphene is the thinnest and hardest known material with superior electronic and thermal conductivity and light transmission properties that enable a broad range of applications. Our graphene products operations are based in the PRC and are strategically located near the largest accessible supply source of high-quality natural graphite in the world.
We currently supply approximately 30 customers in the People’s Republic of China (PRC), including wholesalers, traders and battery manufacturers. The primary customers for our graphene products include manufacturers of automotive batteries, conductive agents, refractory materials for the steel industry, and heat sink materials for precision electronics.
We have 23 patents related to our Graphene Products Business in the PRC, including for products, production methods, machinery design, and environmental protection. Our primary graphene products are:
**Spherical graphite of D50=10-15µm (“SG”), which is an essential material for the production of anodes for Li-ion batteries used in electric vehicles (“EV”) and grid energy storage;
**High-purity graphite (“HPG”), which contains over 99.95% carbon with less than 0.2% moisture. HPG has superior electric and thermal conductivity, resistance to corrosion, and chemical stability. HPG is used in refractory materials and advanced coatings, among other products, and
**Micronized graphite (“MG”), which is a by-product of our production process, with outstanding oxidation resistance under high temperature, lubricative, formability, electric and thermal conductivity, and adhesive properties, and it has several applications, including corrosion-resistant coating, lubricants,and other new composite materials.
We believe that the market for our graphene products will continue to experience significant growth. Our graphene products’ market is driven primarily by demand for Li-ion batteries that require SG for anode material and for lithium plasma. We believe that a significant driver for Li-ion batteries is their use in EV and in grid-storage applications. According to a 2020 International Energy Agency report, the PRC accounted for 47% of the global EV stock in 2019 at a market penetration rate of approximately 5%. Based on certain industry studies, we believe that the global EV penetration rate for new vehicles in 2050 could be as much as 70%. A typical Li-ion High-Energy (100 Ah) cell of around 3,400g requires over 650g of graphite and each EV contains approximately 70kg of graphite.
Note: For the 12 months that ended June 30, 2021, GGL reported total revenue of HK$416.30 million – equal to US$53.18 million – and a net loss of HK$114.9 million – equal to a net loss of US$14.68 million.
|Industry:||Electrical Industrial Apparatus|
|Address||11/F COFCO Tower 262 Gloucester Road Causeway Bay Hong Kong|
|Phone Number||+ 852 2559 9438|
|View Prospectus:||Graphex Group Limited (GGL)|
|Revenues||$53.18 mil (last 12 months)|
|Net Income||$-14.68 mil (last 12 months)|
|Exchange||NYSE - American|
|Price range||$0.00 - $0.00|
|Est. $ Volume||$14.0 mil|
|Manager / Joint Managers||EF Hutton|
|Expected To Trade:|
|Quiet Period Expiration Date:||Available only to Subscribers|
|Lock-Up Period Expiration Date:||Available only to Subscribers|
|SCOOP Rating||Available only to Subscribers|
|Rating Change||Available only to Subscribers|