The odd fan won’t do the job. Cooling demands are ramping up and GCM is moving to meet them. Pic: Getty Images
- GCM completes a global rights deal on its signature tech in a milestone towards commercialisation
- No upfront cost for GCM in the transfer and IP assignment, with future payables capped at $5 million
- The deed supersedes a 2024 VHD technology transfer term sheet between GCM and Cerex
Special Report: In a milestone for bringing its signature technology to market, GCM Corporation has gained exclusive, global ownership of the Very High Density technology and its intellectual property rights.
The deal with Cerex and VHD inventor Professor Charles Christopher Sorrell finalises the transfer of all remaining rights, title and interest in the technology to GCM Corporation (ASX: GCM).
Designed for scalable manufacturing, the tech targets next-generation applications and tackles one of the biggest challenges in high-performance computing and AI-driven data centre operations – managing critical heat loads.
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Deal structured for scale
“This transaction is a significant milestone for GCM, providing full ownership of VHD technology and enabling us to unlock and benefit from its full potential,” GCM MD Clinton Booth said.
“We continue to focus on progressing development and driving commercial outcomes, and this further strengthens our commercialisation pathway as we bring the technology to market.”
There is no upfront consideration payable by GCM to complete the technology transfer and IP assignment. As previously announced, the only consideration payable is in three tranches and subject to GCM reaching agreed revenue milestones post-completion with the total consideration capped at $5 million.
Payable to Cerex and conditional on agreed revenue milestones, the structure includes a $0.5m Tranche 1 payment at $5m in gross revenue, a $2m Tranche 2 payment at $20m, and a final tranche triggered at $50m.
Why VHD matters
Independent testing has shown VHD exceeds the thermal performance of aluminium and copper at the material level. By improving the load on cooling systems, the technology could reduce the requirement for complex cooling and deliver cost savings for operators of data centres, supercomputers, power systems and military applications.
The deed delivers GCM clear and immediate title to the VHD technology and provides the company with the exclusive, global ownership of the VHD technology and its intellectual property rights.
The performance advantages are unlocked by GCM’s simple proprietary manufacturing process, which is globally exclusive to the company.
The deal also supersedes a 2024 technology transfer term sheet, completing GCM’s move to full ownership of the VHD technology.
This article was developed in collaboration with GCM Corporation, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
