Advanced materials engineering group Versarien has acquired the assets of a South Korean company which its hopes will act as a spearhead in the Far East market.

And the Staverton-based company, which specialises in graphene enhanced products, has entered into a subscription agreement worth £3.5million.

Chief executive Neill Ricketts described the acquisition of Hanwha Aerospace as "a strong strategy to be a dominant player in this new Industrial Revolution".

He said: "We've completed an acquisition or created a new company every year since 2013. In this case we've done both.

"It complements our existing portfolio of graphene materials technology.

"In particular, it will provide us with access to patented technology and equipment to produce high quality single and dual layer graphene that has particular applications in the electronics sector, together with other areas, including in relation to some of our existing collaborations."

The deal comprises a portfolio of more than 100 patents and patent rights, many originally developed by Samsung, covering CVD graphene manufacturing methods and related applications, together with manufacturing equipment suitable for producing high quality large format electronics grade graphene.

The subscription agreement with Lanstead Capital Investors, who hold around 7.5 per cent of the company's issued share capital, involves 8,750,000 subscription shares and entitles Versarien to receive back the proceeds on a pro rata monthly basis over 18 months.

Net proceeds will be used primarily to establish operations in South Korea.

Mr Ricketts said: "We are pleased that we have received additional support from Lanstead to provide the funding and additional working capital required for our international expansion strategy.

"It's quite a complicated, innovative way of raising money but it puts the company on a firm foundation going into 2021."