First Graphene Limited announced that it has entered into a Memorandum of Understanding ("MoU") with Gerdau S.A. ("Gerdau") for Gerdau to sell FGR's graphene products and develop applications with these products in mutually agreed economic sectors and business areas. Initially, the MoU is non-binding and allows the two companies to negotiate terms towards a binding agreement that will establish; an initial Commercial Agreement for distribution and collaboration, and rules for a potential investment and share acquisition from Gerdau into FGR, if predetermined sales and investment targets are achieved by Gerdau. The Commercial Agreement will comprise an exclusivity for Gerdau to sell FGR graphene products and develop applications with these products in mutually agreed economic sectors and business areas.

The exclusivity to be defined will be in terms of geography, market and end application or use, defined as Territories for sale in the Americas region The two companies will collaborate to introduce graphene materials and graphene applications into the Americas market. FGR will support Gerdau with its extensive application knowledge and technology focused on graphene dispersion in different matrixes and materials. In turn, Gerdau will invest and develop end-use application in the regions to which it is awarded distribution.