G6 Materials Shares CEO Update Letter
The Letter Includes a Short-Term Plan to Increase Revenue and Cash, Cost Optimization and Financial Goals, as well as a New Long-Term Competitive Strategy
Ronkonkoma, New York, USA – TheNewswire – December 7, 2023 – G6 Materials Corp. (“G6” or the “Company”) (TSXV: GGG, OTCQB: GPHBF),
a high-tech company with expertise in advanced materials and developing innovative composites for a wide range of industrial uses, is pleased to issue the following update letter from its interim President & Chief Executive Officer (“CEO”), Mr. Kevin Cornish, MBA, CPA, CPHR:
Valued past, current and future shareholders,
It is my great privilege to introduce myself. My name is Kevin Cornish, and I started my time with G6 Materials Corp. (“G6” or the “Company”) in May of 2023 as the Chief Financial Officer during the Company’s corporate restructuring. Over the last six months, I have evaluated G6’s strengths and weaknesses and the strategic opportunities for the road ahead. Having taken over the role of Chief Executive Officer in late October, it has been a busy time planning for the Company’s future. That being said, I intend to maintain regular communication through G6’s website, social media, news releases, and monthly email updates.
As many of you may recall, G6 was founded on fantastic research and development (“R&D”) principles, forming the foundation of the Company and its future. Over the next 6-24 months, we plan for G6 to transform years of R&D into a long-term commercialization strategy. Yes, this means we will aim to commercialize our R&D and revolutionize target industries through advanced materials. We plan to transition to a longer-term plan while maintaining a short-term focus on current revenue-generating divisions and evaluating current opportunities across select industries. G6 will not abandon its foundation in R&D; however, the Company's primary focus will no longer be R&D. Rather, G6 will focus on the commercialization of its portfolio of intellectual property created over the years. Many long-term investors have been asking for the Company to evolve this way, and the board of directors and I have been listening.
The commercialization of R&D into a long-term competitive strategy for the Company is expected to be accomplished through our knowledge of composite materials, conductive epoxies, and resins. The best opportunity that we have in front of us is to focus on marine drones. We will pursue this opportunity under a new robotics division, which will anchor our long-term strategy for the foreseeable future.
Our short-term plan will capitalize on opportunities that leverage current technologies within our IP portfolio and additional opportunities that we see in the marketplace. This is expected to include evaluating applications in precious metal recovery and ways to improve the performance of the next generation of lithium-ion batteries. These short-term focus areas will complement the longer-term strategy while effectively utilizing our current capacity and resources. The goal is for our short-term plan and long-term strategy to support each other, and we will continually evaluate them for their efficiency, effectiveness, ability to add value to the Company, and ultimately create shareholder wealth.
Since May, we have completed a corporate restructuring that reduced expenses by hundreds of thousands of dollars annually and streamlined G6’s personnel. We continue to refine our leaner structure and have already seen the benefits of these changes in our Q1 financial results, which showed that our operating expenses decreased by 34% percent over the same period of the previous year. We intend to continuously improve financially and operationally, quarterly, year after year. This initiative will take some time, but we expect to make more changes in early 2024 with more near-term benefits.
A forecast has been prepared using assumptions (all of which are supportable and reflect the Company’s planned courses of action for the period covered) as to the most probable set of economic conditions. Accordingly, we aim to increase revenue to $3 million by May 31, 2025, with the earlier goal of achieving $2.2 million in revenue by the end of 2024. G6 also aims to improve its financial reporting over the next 24 months with respect to segment and division-based disclosures. These targets are reasonable and achievable based on the growth opportunities in front of us today. Please note that achieving revenue of $3 million in fiscal 2025 is expected to make G6 cash flow neutral.
To achieve the latter goals, we will focus on G6’s “Graphene Supermarket” and “Breathe+” product lines with the expectation of enhancing the Company’s cash position in the near term. We plan to increase our revenue in both segments by transitioning to a B2B model from our mostly B2C model currently. We also plan to introduce our graphene-enhanced air filters to new markets and evaluate other opportunities for product-market diversification worldwide. Focusing on existing customers and strengthening current relationships will be a primary objective, as well as adding new customers, while robotics-based revenue materializes over the long term.
As with any new corporate strategy, it takes time to see results. However, any significant opportunities that G6 considers will be evaluated for a minimum of three months on a qualitative and quantitative basis to ensure that key performance indicators, inputs, and outputs match those of our short-term plan and long-term strategy. If you have any comments or questions about the contents of this letter, please feel free to email me at [email protected].
Kevin Cornish, Interim President & CEO
G6 Materials Corp.
About G6 Materials Corp.
G6 Materials Corp. is a high-tech company with expertise in advanced materials that creates value developing innovative composites for a wide range of industrial uses. Graphene Laboratories Inc., a wholly owned subsidiary of G6, sells a range of graphene-based products and other materials, including but not limited to conductive epoxies, high-performance composites, and R&D materials, with numerous customers from among the Fortune 500 list of companies, as well as NASA and leading universities. Graphene Laboratories Inc. has entered the global air filtration market with Breathe+, a line of medical-grade HEPA air filtration products enhanced with advanced performance graphene material.
G6 has identified new graphene-based applications to accelerate growth into the future. Accordingly, the Company has a valuable IP portfolio currently comprising seven granted patents. The Company’s management team and employees have a deep understanding of graphene technology based on decades of aggregate academic and commercial experience. Graphene Laboratories Inc. has established its premium research laboratory and scalable production facility equipped with advanced analytical and material processing equipment.
The Company’s e-commerce websites are listed below:
- Breathe+: Medical-grade HEPA air filtration enhanced with advanced performance graphene material, for more information, visit breatheplus.tech
- Conductive Epoxies: Adhesive materials distributed under the G6-Epoxy® trade name and can be purchased at g6-epoxy.com
- R&D Materials: Graphene Laboratories Inc. currently offers over 100 graphene and related products available at graphene-supermarket.com
This news release contains forward-looking statements within the meaning of the applicable securities legislation that is based on expectations, estimates and projections as at the date of this news release. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. “Forward-looking information” in this news release includes but is not limited to information about the graphene-enhanced air purifier (including efficacy, potential commercialization and patent pending thereof); information about the potential for the Company’s long-term growth; the business goals and objectives of the Company, and other forward-looking information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon.
The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Risk factors that could cause actual results to differ materially include, but are not limited to, the actual results in commercial applications of the Company’s graphene-enhanced air purifier may differ significantly from its test results; health and environmental factors affecting the adoption of the Company’s graphene-based technologies or other products; the Company may fail to obtain appropriate government approvals or accreditation related to the business’ operations and technological processes; the market conditions and demand for its product as well as the market prices of such products being developed by the Company may change over time; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; competition; dilution; and the volatility of our common share price and volume.
The Company undertakes no obligation to revise or update any forward-looking information other than as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Kevin Cornish, Interim President & Chief Executive Officer
Telephone: (516) 382-8649
Email: [email protected]
Elena Polyakova, Chief Operating Officer
Email: [email protected]
Nick Kuzyk, Investor Relations
Email: [email protected]
ON BEHALF OF THE BOARD: Gary Dyal, Chairman
SOURCE: G6 Materials Corp.