Advanced materials group Versarien has acquired 62% of Spain-based Gnanomat for around £2.6 million (around $3.4 million USD).

Payment would be settled with £673,000 in cash and the issue of around 1.3 million Versarien shares at 150p each. The cash component would be used by Gnanomat to fund the scale up of a pilot plant. In addition, Versarien would provide a loan of €1.3 million.

Gnanomat was capable of utilizing Versarien's graphene products in a production process for energy storage devices, the company said. "The incorporation of graphene into energy storage devices has the possibility to radically enhance their capabilities, meeting the demands to increase power density and reduce charging times for everything from hand held devices to electric cars" chief executive Neill Ricketts said.