XG Sciences aims to raise $24 million through an initial public offering to fund operations, as it continues to commercialize composite materials for lithium-ion batteries and other applications. Of the $24 million XGS hopes to raise through an IPO, $11.4 million will go to fund operations for the next two years, “by which time the company might begin generating positive cash flow from operations.” Proceeds from the IPO would also go to working capital, and to increase capacity and its sales and technical service staff.
While the company has accumulated operating losses exceeding $43 million during its development stage, the securities filing cites a growing customer list and order volume. XG Sciences projects 2016 revenues of $5 million to $10 million through the sale of graphene and graphene nanoplatelets for electronic and industrial products that use lithium-ion batteries. A number of companies are currently testing XG Sciences’ materials for applications including lithium-ion batteries, supercapacitors, thermal shielding, inks and coatings, printed electronics, construction products, composites and military uses.
After working on the technology for a decade, the company opted to pursue an IPO as the market begins to open up for some applications, according to the company's CEO. He also stated that XGS would like to be a first-comer also for accessing public markets in North America. While the company’s materials have not yet been incorporated into large-volume commercial products, “six customers have informed us of their intent to begin commercializing products using our products during 2016,” XG Sciences stated in the prospectus. As a result, XGS expects to begin shipping significantly greater quantities of its products in 2016.
In January 2014, XGS announced that Samsung Ventures placed a strategic investment in the company. XGS did not disclose the terms of the investment.