Company Presentation Transformational Technology for Global Industries - November 2020
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Company Presentation
November 2020
ASX: SPN
Transformational Technology for Global Industries
Disclaimer
The material contained in this document is a presentation of general information about the activities of Acacia Coal Limited (to be renamed Sparc Technologies Ltd) and its related bodies corporate (together
“SPN” or the “Company”), current as at the date of this presentation. It is provided in summary and does not purport to be complete. You should not rely upon it as advice for investment purposes, as it does not
take into account your investment objectives, financial position or needs. These factors should be considered, with or without professional advice, when deciding if an investment is appropriate. To the extent
permitted by law, no responsibility for any loss arising in any way (including by way of negligence) from anyone acting or refraining from acting as a result of this material is accepted by SPN, including any of its
related bodies corporate.
This document may contain forward-looking statements with respect to the financial condition, results of operations, and business strategy of SPN. These forward-looking statements are based on estimates,
projections and assumptions made by SPN about circumstances and events that have not yet taken place. Although SPN believes the forward-looking statements to be reasonable, they are not certain. Forward-
looking statements involve known and unknown risks, uncertainties and other factors that are in some cases beyond SPN’s control, and which may cause actual results, performance or achievements to differ
materially from those expressed or implied by the forward-looking statements (and from past results). SPN makes no representation or warranty as to the accuracy of any forward-looking statements in this
presentation and undue reliance should not be placed upon such statements. Forward-looking statements may be identified by words such as “aim”, “anticipate”, “assume”, “continue”, “could”, “estimate”,
“expect”, “intend”, “may”, “plan”, “predict”, “should”, “will”, or “would” or the negative of such terms or other similar expressions that are predictions of or otherwise indicate future events or trends. The
forward-looking statements included in this presentation speak only as of the date of this presentation. SPN does not intend to update the forward-looking statements in this presentation in the future. Certain
statistical and other information included in this presentation is sourced from publicly available third-party sources and has not been independently verified.
This presentation is not a disclosure document for the purposes of Chapter 6D of the Corporations Act 2001 (Cth) and does not purport to include the information required of such a disclosure document. It has
not been lodged with or approved by any regulatory authority, such as the Australian Securities and Investments Commission or the Australian Securities Exchange.
The information in this presentation does not constitute personal investment advice. This presentation is not intended to be comprehensive or provide all information required by investors to make an informed
decision on any investment in the Company. Specifically, this presentation does not purport to contain all the information that investors and their professional advisers would reasonably require to make an
informed assessment of the Company’s assets and liabilities, financial position and performance, profits, losses and prospects. In preparing this presentation, the Company, did not take into account the
investment objectives, financial situation and particular needs of any particular investor.
2
Board and Key Management
Highly experienced board and management with commercialisation and Graphene experience
Peter Wilson
Stephen Hunt Tom Spurling Daniel Eddington Andrew Smith
Technical Consultant
Chairman Managing Director Non-Exec Director Technical Consultant
Stephen is currently a Non Executive Tom held the position of CEO of Ellex Dan has over 20 years experience in Andrew is a development chemist Peter is a professional mechanical
Director of American Pacific Borates Medical Lasers (ASX:ELX) between the financial markets with specialising in Heavy Duty Coatings, engineer and manager with over 30
Ltd. (ASX: ABR). Previous 2011 and 2019, which has recently experience across multiple sectors specifically, the development and years diverse experience in design,
Directorships include, Executive been acquired for c.$100m. Tom has including the resource, energy and testing of anti-corrosive coatings. production and business operations
Chairman and a Non Executive 35 years of experience covering industrial sectors. Dan specialises in Andrew has held senior regional in industries ranging from consumer
Director of ASX listed company, Volt acquisitions, listed company equity equity capital markets and has been technical management roles for electronics to defence and
Resources Ltd, (ASX: VRC), Non capital markets in Australia and the responsible for IPO’s, placements, AkzoNobel (world leader in coatings aerospace. In a range of
Executive Director Magnis Energy USA, marketing strategy reverse takeovers, underwritings, with brands including International, management roles Peter has also
Technologies Ltd. (ASX: MNS), IMX development, development and has corporate negotiations and Chartek, Sikkens, Awlgrip, Devoe), in implemented and managed most
Resources Ltd and Australian Zircon specific expertise in the introduction corporate advisory for companies Australia, Asia and the Americas. corporate functions including HR,
Ltd. Cumulatively, over 20 years as a of complex new products in highly predominantly in the resource and These roles involved responsibility quality, commercial, engineering and
Director of ASX listed companies. regulated markets. In addition, he technology sectors. for product development, testing business development. Peter
Earlier experience includes various brings a wealth of sales and integrity, as well as Technical possesses a unique combination of
marketing roles including over 15 management, manufacturing, Support functions. Andrew most skills and is able to combine them to
years with BHP. Stephen is also a people management, customer recently has been involved in solve the complex problems
Director of the charity, Count Me In. relationships management (both implementing major restructuring associated with rapidly growing
private business and Australian, US initiatives for AkzoNobel, including companies. Since 2018 Peter has
and other governments), and rationalisation of manufacturing been operating his own engineering
significant general managerial capability in the South Asia region. & management consultancy
expertise. He left the company in September
2018 and is currently acting as a
consultant.
3
Investment Highlights
Sparc Technologies aims to become a globally significant developer of Graphene
based products that will disrupt and transform industrial markets
1 2 3 4 5
Exclusive licences to Three initial Aiming to enter 5+ years of R&D Technology under
commercialise advanced target multi-billion dollar conducted by the commercial
Graphene markets with markets* developing University of development which is
technologies Coatings, products with Adelaide and targeted at significant
developed by world Environmental and substantial Australian Graphene large-scale global
leading University of Metals Extraction efficiencies, savings Hub industrial customer
Adelaide from Tailings and revolutionary markets
applications
* Cautionary Note: Access to markets is subject to the Company being able to successfully develop and commercialise the graphene technologies. Sparc does not have any distribution or offtake agreements in place at this stage.
As with any entity seeking to enter into a global marketplace, any product developed by Sparc will have applications that are constrained by market segment, relevant regulations, industrial application and geographical barriers. 4
Graphene: A New Generation Supermaterial Source: Graphene-info.com, Australian Graphene Industry Association 5
Collaboration with the University of Adelaide
Sparc TECHNOLOGIES has a strategic relationship and exclusive licensing agreements with key
collaborator and partner, the University of Adelaide (UA), which is a world leader in graphene
UA ranked as principal member of the Graphene Hub. UA is a world class institution, ranked in the top 1% of Universities globally
The UA team has generated 7 patent applications (4 at PCT stage and 3 IP Disclosures) and developed over 20 graphene based products
SPN to contribute at least $1.5M over three years to UA and Graphene Hub or graphene research and development in order to retain and develop world
leading applications
1 Licensing Agreement with UA 2 Strategic Partnership with UA
UA is a cornerstone shareholder of SPN SPN has first right of offer on any future unencumbered
SPN is currently licensing 3 technologies under patent
application related to marine and protective coatings, water graphene technologies developed by UA
purification & soil remediation, and sound absorption
Other projects identified – research and development
Patents have 20-30 year lives
Extremely favourable terms - No ongoing licence fees or underway
royalties for SPN
3 Project Agreement with UA 4 Project Agreements with the Graphene Hub
SPN to contribute towards research and development of SPN contributing towards research and development on three
coatings applications at UA projects in conjunction with the Graphene Hub
SPN already committed $500K within one year for first project Projects include water purification, metals recovery from
development tailings and soil remediation
6
Initial Target Markets - Industrial
Metals Recovery from Tailings
Marine & Protective Coatings
Environmental Remediation
7
Path to Market
8Coating Industries
Sparc TECHNOLOGIES graphene enhanced coatings have the potential to enhance billion dollar markets
Graphene and Coatings 1
Graphene as a performance additive in marine, aerospace and industrial applications of coatings
Graphene’s unique features provide added benefit to coatings;
Unique anti-corrosion qualities
Superior hydrophobic qualities
Chemical repulsion
Improved drag efficiency
Exceptional UV protection
Fire-resistance
Improved electrical and thermal conductivity
Anti-microbial benefits
SPN has patents pending to target and disrupt marine,
anti-corrosive and anti-microbial coatings markets globally
1. American Coatings Association 3. SPN conservative market estimates
2. Data sourced from APCJ August 2019, www.coatingsgroup.com 9Coating Industries - SPARC Product Performance
SPARC Graphene enhanced coating performs up to 46% better* than the current Industry Premium product
Test Work Results* – Impact of Graphene Based Coating Additives on Corrosion Resistance
SPARC enhanced Corrosion
coating has Performance
0.35 LOW
demonstrated
the potential to 0.30
improve the 0.25
performance of a
Corrosion creep in millimetres
0.20
low cost 0.15
commodity
0.10
product with the
addition of a 0.05
Graphene based 0.00
SPARC, 2 Coats - No SPARC, Outer Coat SPARC, Outer Coat No SPARC, 2 Coats with Industry Premium Industry Commercial
additive. Graphene with Graphene, Inner Graphene, Inner Coat Graphene Product, 2 Coats No Product, 2 Coats No
Coat No Graphene with Graphene Graphene Graphene HIGH
* Test work conducted April 2020 – Impact of Graphene Based Coating Additives on Corrosion Resistance in Neutral Salt Spray Testing, based on ISO 12944 (Corrosion protection of steel structures by protective paint systems). Conducted
by the University of Adelaide. Investors are cautioned that the testwork has not been independently verified by a third party, published or peer reviewed. 10Coating Industries
Sparc TECHNOLOGIES graphene enhanced coatings have the potential to enhance billion dollar markets
Global Industrial Coatings Markets
Marine Coatings 2 Protective Coatings 2
Utilised in commercial and recreational boating and marine services Utilised Oil and Gas, Mining, Power, Infrastructure etc.
Market size of US$7.35B in 2018 Market size of US$16.39B in 2018
Forecast market size of US$9.34B in 2025 Forecast market size of US$34.81B in 2025
3.5% CAGR Similar global participants to marine coatings
67% is held by top 3 players (50-60 in total) 8.7% CAGR
Concentrated in Asia Pacific region More diverse market geographically
Anticorrosive Coatings US$3.38 – $4.06B Much more complex, poorly defined and fragmented market,
Anti-foulings US$3.97 – $5.28B with many local suppliers. Concentrated in Asia Pacific region
Main WW players are similar to Marine, but no more than 8-
10% share to any
1. American Coatings Association 3. SPN conservative market estimates
2. Data sourced from APCJ August 2019, www.coatingsgroup.com 4. Please refer to the cautionary note re market access on slide 4 11Water Purification and Soil Remediation
Proven application of water and soil remediation to be utilised at environmentally contaminated sites
Pollution Remediation Progress
The potential applications of graphene in pollution remediation are SPN has identified how graphene can contribute to PFAS clean up and
adsorption, membrane separation, catalysis and environmental is undergoing proof of concept test work to prove up the application
analysis for:
The adsorption efficiency of graphene adsorbents largely depends on Containment of PFAS using graphene
its surface area, porous structure, oxygen-containing groups and other Destruction of PFAS using graphene is potentially
functional groups, adsorption conditions, and also the properties of transformational
adsorbates1
SPN has identified potential applications of water purification
and soil remediation
Australia alone has an estimated 160,000 contaminated sites with as
many as 75,000 different contaminants2
Global Patent Pending
PCT/AU2016/05041– Water Purification and Soil Remediation -
water purification, oil removal from water, soil remediation
1. Research Gate, Yang et al. 3. Please refer to the cautionary note re market access on slide 4
2. Sector Study on Environmental Services: Environmental Damage Remediation Services, Oct 2017 12Metals in Tailings
Estimated US$1 trillion worth of precious metals sitting in mine tailings1
Graphene and Soil Remediation Market Size
Graphene can be utilised to separate specific metals from tailings dams Estimates that there is approximately US$1T worth of precious
and waste ore on mine sites metals already extracted from the ground, sitting at old mining sites
UA has existing IP on 3D graphene composites that enable SPN to globally1
target the removal of precious metals Opportunity to work with local mining industry
SPN to work with partners in the mining industry to develop optimum Initial Focus on Precious and Base Metals
solutions
Added environmental benefits of removal of metals from soils on local
waterways
1. Mining [DOT] COM, Ana Komnenic
2. Please refer to the cautionary note re market access on slide 4 13Roadmap
Dec20 Mar21 Jun21 Sept21
Note: Timeline is from completion of RTO, is indicative only and subject to change 14Acquisition by AJC
Sparc TECHNOLOGIES (ASX:SPN) will list on the ASX by way of a reverse takeover of Acacia Coal
Limited (ASX:AJC)
Overview
As part of the re-admission to the ASX the Company issued a prospectus to raise $4M
These fund will complement AJC’s existing cash holdings of $2.1m giving a total $6.1m in cash (as at 30 Oct 2020)
The funds raised will be applied to the following purposes:
building a management team for the development and commercialisation of graphene products;
develop and test samples of functionalized marine and protective coatings for demonstration to global coating
suppliers;
build and commission a scalable production plant;
ongoing research and development of existing and new graphene solutions; and
general working capital purposes.
The agreement is subject to the satisfaction of certain conditions precedent.
15RTO Capital Structure
Ownership Breakdown Post-Listing (Undiluted) Shares
Performance Unlisted
Shares Options3
Acacia Coal Shareholders1 20,338,258 - 1,562,500
Total Consideration Shares to GTS4 30,125,000 - 2,159,265
Incoming Board & Management - 7,000,0002 -
28% 29%
Capital Raising @ $0.20 / share ($4M max) 20,000,000 - -
Total 70,463,258 7,000,000 3,721,765
5% Note: The above table and total issued shares after completion of the Transaction is on a post-consolidation basis, is indicative only and are subject
to change.
1. AJC shareholdings consolidated at an assumed ratio of 1:200; this may change dependent on the AJC share price at the issuance date of the
Notice of Meeting.
37% 2. 7,000,000 in five-year SPN performance shares to incoming directors and management set out across one milestone as below:
The Performance Shares will convert into ordinary shares (Shares) in the Company on a one-for-one basis where on satisfaction of the
following milestone: (i) SPN generates annual Operating Revenue of at least $3 million from the Graphene Projects or Graphene Technology
over an audited financial year; and (ii) the Company achieves a market capitalisation (based on the Company's VWAP) of $50 million or more
(Milestone)
3. Post-consolidation unlisted options consist of 212,500 options with an exercise price of $1.20 per share and an expiry date of 5 December
2021; 975,000 options with an exercise price of $0.30 per share and an expiry date of 9 August 2023; and 375,000 options with an exercise
price of $0.30 per share and an expiry date of 8 November 2021.
4. Includes 625,000 ordinary shares and 2,159,265 three-year options exercisable at $0.30 per share to be issued as part consideration for Lead
Exisiting Acacia Shareholders GTS Shareholders Adelaide University Incoming Shareholders Manager and Corporate Advisory services
16Broader Industry Comparisons
$240m
$226m
ASX Listed
$200m
Overseas Listed
ARC Graphene
Hub Constituent
$160m
Enterprise Value (A$)
$120m
$104m $103m
Average – A$78m1
$80m
$58m $57m
$52m
$47m
$40m $33m
$19m
$8m
$m
NanoXplore Versarien PLC Archer Materials Directa Plus PLC Zen Graphene First Graphene Eden Innovations Hazer Group Haydale Graphene Sparc (Pro-Forma)
GRA: TSXV VRS: AIM AXE: ASX DCTA: AIM Solutions FGR: ASX EDE: ASX HZR: ASX Industries
ZEN: TSXV HAYD: AIM
Manufacture Verified US Printable Graphene- Hydrogen Functionalised Graphene Graphene Surface Functionalised
High-Volume Graphene Graphene enhanced Production Graphene with Nanotubes for Enhanced Functionalisation Graphene with
Graphene Producer Biosensors & Environmental Process & Graphene Cement Composites & using Graphene Proposed
Powder Graphite Mining and Textile Graphene Production Graphite Mining Graphene
Products Research Facility Production
Facility
Note: All Enterprise Values Sourced from Factset in AUD as at 23 September 2020
1. Average excludes Sparc 17Close Comparisons – Functionalised Graphene Developers
Company Summary
$250m
• 4,000 tonne/annum Graphene manufacturing facility based in Montreal, $226m ASX Listed
currently upgrading to 10,000/tonne/annum
• C$81m in revenues for CY 2019 Overseas Listed
• Key uses: ARC Graphene
$200m
TSXV: GRA Graphene Powder, Transport Composites, Plastic Composites and Hub Constituent
EV: A$226m Infrastructure Composites
• Existing ARC Graphene Hub Member
Enterprise Value (A$)
• Innovative materials include carbon-based qubits for quantum computing, $150m
graphene enhanced biosensors, graphitic battery anodes
• Recent agreement with IBM to create enhanced quantum computing
ASX: AXE processors utilising functionalised carbon/graphene technologies $103m Average – A$110m1
EV: A$103m
$100m
• €895k revenue for FY 2019
• Key approvals include European new substance registration (REACH), Italian
Environmental Ministry and ISO 14001:20015 environmental accreditation
• Key uses: $58m
$52m
AIM: DCTA Pollutant absorber, luxury textiles, workwear, military wear,
$50m
EV: A$58m Composites and Elastomers
• Existing ARC Graphene Hub Member
• 100 tonne/annum Graphene manufacturing facility based out of Perth $8m
• Key approvals include European new substance registration (REACH) and
$m
Australian new substance registration (NICNAS)
NanoXplore Archer Materials Directa Plus PLC First Graphene Sparc (Pro-
• Key uses: Forma)
ASX: FGR Elastomers, Fibre Reinforced Composites, Fire Retardant Coatings,
EV: A$52m Thermally Conductive Coatings and Concrete Composites
Note: All Enterprise Values Sourced from Factset in AUD as at 23 September 2020
1. Average excludes Sparc 18Disrupting global industries with Graphene
based transformational technology
19Contact Stephen Hunt Tom Spurling Mark Flynn Executive Chairman Managing Director Investor Relations +61 402 956 205 +61 417 818 658 +61 416 068 733 stephen.hunt@sparctechnologies.com.au tom.spurling@sparctechnologies.com.au mark.flynn@sparctechnologies.com.au
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