Brisbane, Australia — March 2, 2026 — Leads & Copy —
Graphene Manufacturing Group Limited (TSXV: GMG) (OTCQX: GMGMF) has announced that its Board of Directors has approved an additional AU$1.4 million investment to complete the construction of its Gen 2.0 Graphene Manufacturing Technology plant. The facility is expected to produce 10 tons of graphene annually.
The total capital cost for the Gen 2.0 Plant is estimated at AU$2.3 million. The expenditure was largely included in the proposed use of proceeds for the March 2025 Bought Deal Financing of C$5,796,000.
The company’s board reports satisfaction with the progress and anticipates the Gen 2.0 Plant project will meet its original budget and be online by mid-2026. Early work and procurement of long lead items are substantially complete, and engineering and design have commenced.
The Gen 2.0 Plant is expected to be largely self-powered from standalone energy generation utilizing renewable sources, an energy storage system, and hydrogen-enriched natural gas provided by tail gas power generation.
GMG’s Managing Director and CEO, Craig Nicol, expressed enthusiasm about the Gen 2.0 project’s progress and the anticipation of bringing the plant online on time and within budget.
GMG’s Chairman and Director, Jack Perkowski, noted that a successful Gen 2.0 project will form the basis for the company’s future expansion plans.
The Company also provided an update to its most recent Quarterly Financial Results as published and filed on March 2, 2026. The company’s results are reported under International Financial Reporting Standards (IFRS). The news release may include certain Non-IFRS measures as reported in the company’s Quarterly Management Discussion and Analysis (MD&A) that are used internally by management to assess the underlying operational performance of the business.
As of December 31, 2025, the company had 18.6 million outstanding share purchase warrants with exercise prices denominated in Canadian dollars. Because GMG’s functional currency is the Australian dollar, IFRS accounting standards require these warrants to be treated as a derivative financial liability and revalued at fair value each reporting period.
During Q2 FY2026, GMG’s share price increased 178%, a performance that reflects growing market confidence. Under IFRS, this share price increase results in a higher calculated fair value for the warrant liability, which in turn generates a non-cash loss in the company’s statement of profit or loss and a corresponding increase in total liabilities on the balance sheet.
According to the release, this accounting adjustment is entirely non-cash and does not affect GMG’s cash position, operations, or business fundamentals. The company’s cash balance at December 31, 2025, was A$13.9 million, up from A$7.7 million at June 30, 2025. Excluding the warrant liability, the company’s underlying net assets position at December 31, 2025, was positive A$21.5 million.
The warrant liability decreases when warrants are exercised, converting the liability to equity and adding cash, or when the warrants expire or when the share price declines. Subsequent to December 31, 2025, approximately 2.9 million warrants were exercised for gross proceeds of A$3.6 million, further strengthening the company’s cash position and reducing the warrant liability by a corresponding amount.
Management views the warrant liability as a technical accounting matter that does not reflect the company’s operational performance or strategic progress. The company’s market capitalization at December 31, 2025, was approximately USD$200 million.
One Non-IFRS measure that the Company refers to in its MD&A is EBITDA, which is revenue before finance costs, tax, depreciation and amortization, and after adjusting for certain non-cash items and other earnings adjustment items.
GMG is an Australian-based clean-technology company focused on energy-saving and energy storage solutions enabled by graphene. The company uses its proprietary process to decompose natural gas into carbon (as graphene), hydrogen, and residual hydrocarbon gases, producing high-quality, low-cost graphene suitable for clean-technology applications.
The company’s present focus is to de-risk and develop commercial scale-up capabilities, and secure market applications. In the energy savings segment, GMG has initially focused on graphene enhanced heating, ventilation and air conditioning (“HVAC-R”) coating (or energy-saving coating) which is now being marketed into other applications including electronic heat sinks, industrial process plants and data centres. Another product GMG has developed is the graphene lubricant additive focused on saving liquid fuels initially for diesel engines.
In the energy storage segment, GMG and the University of Queensland are working collaboratively with financial support from the Australian Government to progress R&D and commercialization of graphene aluminium-ion batteries (“G+AI Batteries”). GMG has also developed a graphene additive slurry that is aimed at improving the performance of lithium-ion batteries.
GMG’s four critical business objectives are to produce graphene and improve/scale cell production processes, build revenue from energy savings products, develop next-generation batteries, and develop supply chain, partners and project execution capability.
Source: Graphene Manufacturing Group Limited
