G6 Materials Issues CEO Update Letter to Shareholders
The Letter Highlights the Company's Pivotal Year and Outlines its Near-Term Goals
Ronkonkoma, New York, USA - TheNewswire – September 9, 2021 - G6 Materials Corp. (“G6” or the “Company”) (TSXV: GGG, OTCQB: GPHBF),a technology company creating value through the development and commercialization of innovative graphene-based solutions, today issued the following update letter from G6’s President and Chief Executive Officer (“CEO”), Daniel Stolyarov, to the Company’s shareholders:
Dear Shareholders of G6 Materials Corp.,
It has been a pivotal year for our company, G6 Materials Corp. (“G6”), rich with positive progress that I would like to recap for you. The global coronavirus pandemic that intensified in the United States in early 2020 brought many challenges to G6, but it also encouraged our team to explore a range of new market opportunities that are gaining momentum, specifically in air and water purification. Also, we have recently started working in a new area – on the graphene-enhanced recovery of precious metals and green energy materials.
Most importantly, on August 26, 2021, we closed an exciting acquisition, the previous announcement of which fueled an over-subscribed equity financing. Today, we have emerged from the pandemic as a renewed and well-capitalized company, with growing annual revenues, a valuable IP portfolio, and an expanded team that has been strengthened with seasoned businesspersons. The highlights of G6’s recent developments are summarized below:
Acquisition of GX Technologies (“GX”) and C$5.4 Million in Equity Financing
The closing of the GX acquisition and equity financing transactions helped us establish a world-class research, corporate, and project development team focused on the commercialization of graphene-enhanced materials and technologies. The GX team, including Taso Arima (Director) and Tom Feldmann (Advisor), brings increased access to capital, having raised over US$700 Million of equity from the public markets, including US$260 Million raised on the NASDAQ over the last 12 months. As a demonstration of their access to capital, the GX team helped attract C$5.4 million of equity capital to G6 which we closed on April 12, 2021.
Regarding the acquisition, GX’s assets include a cooperative R&D agreement with the US Army Corps of Engineers (“USACE”) and an exclusive license for two USACE patents. Further, G6 acquired an option to lease land in the industrial development site at Natchez, Mississippi (the “Natchez Site”), which is equipped with a wastewater treatment facility connected to a river port by rail to enable rapid industrial-scale production.
Current Facility Upgrade and Scaling-Up of Graphene Production
The C$5.4 million of equity capital gives us the capacity to move full speed ahead with the scaling-up of our graphene material production. In the first stage of this project, we are working diligently to upgrade our current facility in Ronkonkoma, NY. And to expedite the project, we are strengthening the core team and hiring new personnel.
Over the last several months, we have also invested in advanced quality control and pilot-scale production equipment. Currently, we are setting up and testing this equipment. We are planning to commence the pilot plant and upgraded testing laboratory in the fourth quarter. The material produced by the pilot plant will be used by our research team to develop new products and continue making the existing ones needed in our current product lines.
As many of you already know, we at G6 strive to consistently produce high quality products. To be able to attract a significant number of customers, we must adhere to strict manufacturing standards. Hence, we have begun the ISO-9001 certification process for our Ronkonkoma facility, which we expect to be finalized by the fourth quarter of this year. Additionally, G6 is planning to exercise the option to lease a dedicated area at the Natchez Site to secure the potential to build an industrial-scale graphene production plant in that highly strategic location.
Growing Sales and Bringing New Products
We are proud that our revenue has more than doubled over the last year and a half. We continue to have a steady flow of orders for R&D graphene materials, and it is satisfying to see years of research and development work lead to an increasing amount of sales. Also, we are receiving a lot of interest in our line of conductive epoxy resins distributed under the brand “G6 EpoxyTM”.
With a historical customer list exceeding 25,000 in aggregate, G6’s products have been and continue to be used to manufacture the goods produced by novel technology firms, Fortune 500 companies, research labs, and other innovators. We anticipate that our formulations will soon be used to make smart and flexible electronics, novel sensors, and other innovative products.
Further, we are in the final stages of preparing to launch our own brand of air purifiers, the exciting 99.9% antimicrobial efficacy test results of which were recently announced in our news release on Sept 7, 2021. Therefore, please make sure to join or stay on our mailing list to begin or keep receiving timely updates on the brand of air purifiers and other new products.
Expanding R&D Program and IP Portfolio
Our team continues to work steadily on the development of innovative materials and products. Currently, G6 holds five patents, six patent applications, and two exclusive licenses for USACE patents. We also plan to continue developing proprietary technology in collaboration with the USACE in the areas of air and water purification.
Ultimately, we are very excited about what the future has in store for G6, especially as we prepare to increase graphene production and launch new products.