Graphene Manufacturing Group approves A$1.4 million to complete second-generation production plant Proactive uses images sourced from Shutterstock

Graphene Manufacturing Group Ltd (TSX-V:GMG, OTCQX:GMGMF), the Brisbane-based clean technology company, has approved a further A$1.4 million investment to complete construction of its second-generation graphene manufacturing plant, which is expected to be operational by the middle of this year.

The additional capital brings the total cost of the Generation 2.0 plant to approximately A$2.3 million and was largely anticipated in the proceeds of a bought deal financing the company completed in March 2025, which raised C$5.8 million.

The new facility is designed to produce 10 tonnes of graphene per annum and is intended to run largely on self-generated power, drawing on renewable energy sources, a battery storage system and hydrogen-enriched natural gas recovered from its own production process.

Graphene is a form of carbon consisting of a single layer of atoms arranged in a hexagonal lattice.

Because of its exceptional strength, electrical conductivity and thermal properties, it has attracted significant interest as an additive across a range of industrial and clean-technology applications, including battery manufacturing, lubricants and heating and cooling systems.

Craig Nicol, chief executive and managing director, said the company was excited by progress to date and confident the plant would be delivered on time and within budget. Chairman Jack Perkowski said a successful outcome would underpin the company's longer-term expansion plans.

Separately, Graphene Manufacturing Group provided additional context on its most recent quarterly financial results, seeking to clarify a non-cash accounting item that affected its reported figures.

The company holds 18.6 million share purchase warrants with exercise prices denominated in Canadian dollars. Because its functional currency is the Australian dollar, international accounting standards require these warrants to be classified as a derivative financial liability and revalued at fair value at each reporting period.

During the second quarter of its 2026 financial year, the company's share price rose 178%, which under accounting rules increased the calculated value of the warrant liability and generated a corresponding non-cash loss in its income statement.

The company stressed that the adjustment has no effect on its cash position or operations. Its cash balance at 31 December 2025 was AU$13.9 million, up from A$7.7 million six months earlier, and its underlying net assets excluding the warrant liability stood at a positive AU$21.5 million.

Since the end of the quarter, approximately 2.9 million warrants were exercised, generating gross proceeds of AU$3.6 million and further reducing the liability.

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