The company received $2 million under this facility at close and may draw another $3 million at its discretion at any time prior to the first anniversary of the agreement. After the first anniversary of the closing, the company may access the remaining $5 million, provided it has raised at least $10 million of additional equity capital. XG Sciences and Dow agreed to hold commercial discussions including the potential out-license of certain of Dow’s manufacturing IP related to graphene nanoplatelets to XGS.
“We are pleased to work with Dow on this agreement. We believe this financing will allow us to continue building on our leadership position as a global supplier of graphene nanoplatelets,” said Philip Rose, CEO of XG Sciences. “We have seven customers who are using our materials in their products and actively selling them to their customers or actively promoting them for future sales, and we expect that another 10 to 15 customers will begin to use our products commercially in 2017.”