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Sparc Technologies makes strong ASX debut with shares up to 90% above IPO price

Published: 15:55 23 Nov 2020 AEDT

Sparc Technologies Ltd - Sparc Technologies makes strong ASX debut with shares up to 90% above IPO price
Shares have traded up to 38 cents on the first day, 90% higher than the IPO price of 20 cents.

Sparc Technologies Ltd (ASX:SPN), formerly known as Acacia Coal Limited (ASX:AJC), has made a strong ASX debut with shares opening at 30 cents, higher than the 20 cent IPO price, and trading up to 90% higher to 38 cents.

Acacia Coal’s shares were relisted on the ASX following the completion of its acquisition via a reverse takeover, of emerging South Australian graphene technology developer, Graphene Technology Solutions (GTS).

Graphene-based products

The acquisition will see the company’s core business transition from coal and mineral exploration to the development and commercialisation of new world, graphene-based products.

Sparc Technologies will focus on near-term commercialisation of revolutionary graphene-based, environmentally focused technologies, to enhance and disrupt multi-billion-dollar industries.

From GTS, Sparc will inherit strong industry partnerships and government support via the Australian Research Council’s Research Hub: Graphene Enabled Industry Transformation Hub, in collaboration with the University of Adelaide (UA).

One of the world’s leading graphene research universities, UA will become a shareholder in Sparc.

“Demonstrated commercial potential”

SPN’s executive chairman Stephen Hunt said: “We have already demonstrated in trials the enormous commercial potential that graphene can deliver as a performance additive for anti-corrosion, drag-reducing coatings in marine and industrial applications and we look forward to continuing that development in real-world scenarios.

“In addition, we are making progress with respect to water purification (separation and removal of oil, unwanted metals and chemicals), and precious metals recovery from tailings and soil remediation for contaminated sites, especially per and poly-fluoroalkyl substances (PFAS).

“Our graphene-related technology is being tested to target and separate precious and rare metals from tailings dams and what would otherwise be waste ore on mine sites.

“The initial production process will be validated to supply graphene specifically for application into marine and protective coatings including for anti-fouling, wear-resistance and drag resistance.”

Relisting details

The revamped Sparc relisted on the ASX with 70.5 million ordinary shares on issue, a market value at the listing of $14.1 million and an enterprise value of $8 million.

Its listing route included a successful prospectus offering 20 million shares at 20 cents each which was underwritten by Morgans Corporate Limited, to raise $4 million.

Discovery Capital Partners acted as corporate advisor to the transaction.

The capital raising was cornerstoned by a significant technology investor, Perth-based Rod Jones and his family office, Hoperidge Capital.

Changes in board

The former Acacia Coal board, headed by incumbent chairman Adam Santa Maria, will retire to welcome a new board of directors to drive the company forward, led by executive chairman Stephen Hunt; managing director Tom Spurling, a former CEO of medical device company, Ellex Medical Lasers Limited; and non-executive director Daniel Eddington, a financial and equities market specialist.

Arrangement with University of Adelaide

Sparc will leverage its exclusive licensing, strategic partnership and research agreement with the University of Adelaide and collaboration agreement within the ARC Graphene Enabled Industry Transformation Hub involving five other Australian leading universities, to develop and commercialise graphene-based products and technologies which all have significant environmental and economic benefits with industrial applications across many sectors.

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