In 2018, Sunrise Energy Metals (SRL) and Ionic Industries partnered up and established a JV called NematiQ to develop graphene oxide (GO) membranes for water treatment applications. SRL initially had a 75% stake in the joint venture, before increasing its interest to 83.2% in 2020. Now, SRL announced its plan to take full ownership of NematiQ.
NematiQ has developed a process for manufacturing GO, which can be applied to a membrane support to create a graphene oxide-based nanofiltration membrane (GO-Membrane). The GO-Membrane manufacturing process has reportedly already been demonstrated on commercial-scale industrial equipment.
SRL has reached an agreement with Ionic, under which it will acquire the remaining 16.8% interest in NematiQ which it doesn’t currently own. This will consist of 116,667 shares, as well as a shareholder loan of $340,000 which NematiQ owes to Ionic.
In consideration, Sunrise will issue 740,741 of its fully paid, ordinary shares, worth roughly $2 million combined, to Ionic. Ionic has agreed to a voluntary escrow of the Sunrise shares until September 30, 2021.
As a result of the acquisition, NematiQ will become a wholly owned subsidiary of Associated Water, a Sunrise Energy Metals company.