Troubled Gloucestershire engineering firm Versarien has extended a partnership deal with a South American manufacturer.
The AIM-listed company, which makes products using graphene for the automotive, clothing and aerospace sectors, has extended two existing manufacturing licence agreements with Montana QuÃmica initially announced in March.
The agreements will allow Montana to produce and sell Versarien's products in South America, with the Longhope-based company providing technical assistance and training.
Under the terms, Montana will pay Versarien £50,000 together with an amount equal to 5% of the total sales revenue earned from products manufactured using the firm's intellectual property, subject to minimum royalty payments of £10,000 a year.
The payments and the royalty are in addition to the payments due under the agreements with Montana announced in March.
Dr Stephen Hodge, chief executive of Versarien, said: "We are very pleased to be extending our partnership with Montana, a leading business in its markets in South America that we have developed a close relationship with.
"We look forward to supporting Montana and its clients as they bring added-value products to the market utilising Polygreneâ„¢ thermoplastics."
The announcement comes just days after Versarien warned over its future after posting a pre-tax-loss of £1.49m for the first half of the year.
On Tuesday (July 1) the company confirmed it had closed down its Korean business and said that if no further external financing was received, it would cease to be able to pay its debts by August without taking "additional restructuring action and raising further funds".
