Regarding NGC's option to purchase NeoGraph Solutions LLCJust the other day I was referring to NGC customers and in particular a certain NGC customer which NGC could possibly be striking a coming joint venture partnership with.
I described the customer as follows.
". . . a certain Quebec based manufacturer posessing a proprieatry 4,000 tpa capacity of high quality and "USEPA qualified" Graphene BlackTM powder production. This is a company which manufacturers proprietary graphene enhanced plastic composites products, graphene based Sheet Molding Compound product, graphene comprised automotive parts and components and also proprietary graphene enhanced silicon anode additives materials, graphene-silicon battery anode materials, graphene enhanced electrolyte and graphene enhanced cathode additive materials as well.
I also stated "I am really hoping that the aforedescribed company is one of the coming joint venturing commercialization partners for Northern Graphite Corporation."
Clearly, it does present as though NGC has one upped me in terms of my expectations of a mere partnership with the 4,000 tpa capacity "graphene" manufacturer and graphene comprised or enhanced products development and manufacturing centric company which I was considering as perhaps being one of the next joint venturing commercialization partners for Northern Graphite Corporation.
Clearly, NGC management just didn't reach for the moon, they are reaching for the stars with this proposed option to purchase a 50.1% voting control stakehold and a 33% equity ownership of NeoGraph Solutions LLC from Edgewater Capital Partners.
In one fell swoop NGC goes from being a miner and supplier of graphite feedstock for it's various existing customers to becoming a vertically integrated miner of graphite and a potential multiple downstream business segments exposures attaining graphite and graphene enhanced composites products manufacturing player.
The only question which quite obviously remains unanswered is at what cost and precisely at what requisite and most specific NGC share price going forward?
Hugues Jacquemin, Northern's CEO, commented, "The NeoGraf transaction is a major step toward integrating downstream to capture a greater share of the value chain and creating an industry leading mine-to-market natural graphite company with the ambition to produce low carbon footprint products." He added that, "We are very pleased to be partnering with Edgewater, which will enable us to complete the transaction in a very capital efficient manner. The combination of Edgewater's performance materials expertise and our . . ."