Gloucestershire-based engineering firm Versarien has completed the sale of its South Korean factory and equipment for more than £600,000.
The agreement with MCK Tech was announced last March as part of a strategy to monetise intellectual property (IP) through licensing. The transaction was meant to complete last July, but was delayed after MCK Tech asked for an extension to the deadline.
Longhope-based Versarien has now received the final payment of £92,000, plus accrued interest, it announced on Monday (March 3). In total, Versarien has received £611,000 after a £6,000 warranty deduction from MCK Tech for its Korean plant and equipment.
Under the terms of the deal, AIM-listed Versarien has granted an exclusive licence to MCK Tech for an initial period of five years, to use five patents owned by the firm in their business in Korea.
MCK Tech will pay Versarien an amount equal to 4.5% of the total sales revenue earned from products manufactured using the IP. If the sales revenue derived from the IP is less than £250,000 over the first two years, the licence will terminate and MCK Tech will pay Versarien £40,000 for use of the IP.
In June, Versarien said it was “optimistic” about the future after reporting a narrowing of losses. In a set of unaudited interim results, the firm reported pre-tax losses of £1.77m - down from £3.4m the year previously - for the six months ended March 31, 2024.
In December, the company revealed its Spanish subsidiary has secured a €804,000 grant. Versarien said at the time that the money would be used by Gnanomat to finance a two-year project relating to a high-tech energy storage devices.
Versarien also signed an agreement with infrastructure group Balfour Beatty last year to develop a range of low-carbon, graphene‐infused, 3D‐printable mortars for civil construction.
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