Transcription of Finance News Network Interview with LWP Technologies Limited (ASX:LWP) Chairman, Siegfried KonigDavid Chau: Hello I’m David Chau from the Finance News Network and joining me from LWP Technologies Limited
(ASX:LWP) is Chairman, Siegfried Konig. Siegfried, thanks for joining us.
Siegfried Konig: Thank you.
David Chau: First up, can you give us an introduction to LWP Technologies?
Siegfried Konig: LWP Technologies is a small cap company listed on the Australian Stock Exchange, under the ticker LWP. And our company’s in a strong financial position, with around 2,100 shareholders. And we have a fantastic proppant for the oil and gas services industry that we’ve developed from scratch, and proved up the technology in our pilot plant in Brisbane.
David Chau: Can you tell us more about your company’s projects?
Siegfried Konig: The ceramic proppant we originally designed was to be a high strength, very high quality proppant. However, the market in the current low oil and gas environment has declined considerably. Everybody today is looking for a very very low cost highly effective proppant, therefore, we have redesigned our technology. Now we’ve just last week, announced a very low-cost proppant that can compete against the cheapest quality proppants, which is mined frac sand, on price.
David Chau: Now to your ASX announcement about Aluminium-Graphene-Oxygen battery technology. What attracted you to this company and the technology?
Siegfried Konig: The technology was introduced to me by a person that I’ve known for over 10 years, and whose advice I trusted. When I heard about the technology, naturally I was immediately sceptical, because usually when we find something that looks too be good to be true, it usually is. Therefore, we put a due diligence expert on the case, we requested second opinions from patent attorneys on the patents, and we had long in-depth conversations with the inventor.
The more we found out, the more we investigated, the more we believed the technology really has legs. The potential of the technology is absolutely limitless and could change the way the world commutes. So therefore, for a very small investment of around $1.6 - perhaps up to $3 million over 12 months, LWP could easily be a billion dollar company, if the technology works.
David Chau: What were the terms of the transaction?
Siegfried Konig: The terms of the transaction are that the inventors and LWP are 50/50 joint venture partners in a new company, called GraphenEra. Because we believe the era of graphene is just beginning.
David Chau: What will LWP bring to its joint venture?
Siegfried Konig: What LWP brings to the table is the ability and the proven history of being able to bring brand new technologies, from the research and development stage, right through to commercialisation. The other thing we bring to the table is marketing, commercialisation and future corporate transactions, whether that be IPO, spinouts or otherwise, are all directed by LWP according to the terms of the agreement.
David Chau: Now to financials, what is your cash position?
Siegfried Konig: We have a strong cash position at the moment. We have at the end of March quarter, close to $4 million in the bank and the ATO owes us around $2.7 million, in R&D tax offset claims. We endured a two-year tax audit finishing in January this year, and were given a clean bill of health by the ATO. So we’re expecting with those monies, to have around about $6.4 million cash and that’s around about four years working capital, for LWP.
David Chau: What are your expectations for the company over the next six to 12 months?
Siegfried Konig: With the new proppant technology that we’ve invented and announced last week, we believe that will culminate in our first licence agreement, somewhere between three and six months from now. In relation to the GraphenEra technology, we believe that somewhere between six and 12 months, we’ll have a working prototype that we can give to potential licensees, to validate.
David Chau: Last question Siegfried. Where would you like to see LWP Technologies this time next year?
Siegfried Konig: I’d like to see us around about a 20 or 25-cent share price and enjoying the fruits of our hard labour.
David Chau: Siegfried Konig, thanks for the update.
Siegfried Konig: Thank you very much.
Ends
