Ultracharge (ASX:UTR) has slumped 20 per cent to 0.4c after announcing that it’s selling a key piece of IP to Singapore company SES Holdings.

The battery maker is selling its intellectual property for an electrolyte salt, LiFSI, which it bought in late 2017.

It’ll get $US700,000 (almost $1m) at the end of May.

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The company did not say why it was selling, and managing director Kobi Ben-Shabat told Stockhead he would update the market as to why on Friday.

 

Ultracharge is building fast charging batteries and said in its half year report in March it expected first revenue in mid-2019 from two- and three-wheel scooter contracts signed last year.

Lithium ion batteries are made up of a positive anode, a negative cathode, and an electrolyte solution.

But the most commonly used electrolyte salt is LiPF6 which is a major factor in battery degradation, the company said.

When it bought the IP it was with the idea that the new electrolyte could make batteries last longer on hot days and give more power on cold days, and would be cheaper to make.

The company is raising $550,000 in a private placement of shares, into which the managing director Kobi Ben-Shabat is kicking in $50,000.

The money is going into the general capital pool and to ensure it delivers on the Roadix three-wheel scooter deal, signed in December, and the Blitz Motors two-wheel contract signed in May last year.

The latest quarterly showed a cash burn of $497,000 and an expected expenditure of $445,000 this quarter.

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