Revenue grew by 276% for the nine-month period ending February 28, 2021

  

Ronkonkoma, New York, USA - TheNewswire - April 30, 2021 - G6 Materials Corp. (“G6” or the “Company”) (TSXV:GGG) (OTC:GPHBF), a technology company creating value through the development of innovative graphene-based solutions, is pleased to announce that it has filed its unaudited financial results for the third quarter of the fiscal year ending February 28, 2021, the highlights of which are included in this news release. The full set of Condensed Interim Consolidated Financial Statements and Management Discussion and Analysis can be viewed by visiting G6’s website at www.g6-materials.com or its profile page on SEDAR at www.sedar.com.

 

Financial Highlights (all amounts expressed in US dollars unless otherwise noted)               

 

• - Revenue for the nine-month period ended February 28, 2021 reached $1,938,991, a 276% increase from the $515,930 reported for the same period of the prior year, which was primarily due to consulting services provided to third-party clients, the ongoing sale of the Company’s air purification products and the receipt of a one-time payment as per the terms of a license and option agreement.

  - Gross profit for the nine-month period ended February 28, 2021 was $704,944, a 339% increase from the $160,620 reported for the same period of the prior year, due to the same aforementioned reasons, while partially offset by a recent increase in the shipping costs of direct materials from the imports of air purification materials.

  - Total expenses for the nine-month period ended February 28, 2021 were $1,308,452, as compared to $913,208 for the same period of the prior year, primarily due to an increase in research and development expenses as per the terms of a license and option agreement associated with the aforementioned one-time cash payment, as well as the $268,579 of share-based compensation related to the issuance of the options on October 14, 2020.

  - Comprehensive loss for the nine-month period decreased by 29% to $531,146 for the period ended February 28, 2021, as compared to a comprehensive loss of $750,944 reported for the same period of the prior year, which was primarily due to a combination of the reasons provided above.

  - Total assets for the period ended February 28, 2021 increased by 39% to $1,617,187 from $1,165,686 for the year ended May 31, 2020 and a 119% increase from $740,029 reported for the same period of last year.

  

Management Commentary

 

“Based on the comparison of this period’s results to our quarterly results at this time last year, as well as the comparison on a year-to-date basis, I and the Board of Directors are pleased with the improved performance of G6 across all key metrics. Consumers have responded positively to our product offering and our employees continue to work hard to achieve our goals,” said Daniel Stolyarov, President & CEO of G6 Materials Corp. “Looking ahead, I am excited about the previously announced acquisition of GX Technologies and deploying the proceeds from our successful equity financing to execute on our current growth projects and add value to the company through our new assets,” added Mr. Stolyarov.

 

Summary of Key Quarterly Financial Measures

(with 3Q20 shown for year-over-year comparison purposes)

 

	Quarter ended Feb 28, 2021 $	Quarter ended Nov 30, 2020 $	Quarter ended Aug 31, 2020 $	Quarter ended May 31, 2020 $	Quarter ended Feb.29, 2020 $
Revenue	263,425	506,140	1,169,426	406,684	169,237
Cost of goods sold	(193,993)	(297,236)	(742,818)	(365,059)	(104,636)
Gross profit	69,432	208,904	426,608	41,625	64,601
Operating expenses	(476,373)	(530,525)	(301,554)	(327,385)	(292,789)
Net income (loss)	(323,641)	(321,621)	125,554	(261,760)	(228,188)
Comprehensive income (loss)	(321,152)	(320,759)	110,765	(251,168)	(226,213)
Net income (loss) per share (basic and diluted)	($0.002)	($0.002)	$0.002	($0.002)	($0.003)
Total assets	1,617,187	1,342,561	1,472,872	1,165,686	740,029
Shareholders’ equity	836,567	802,039	855,943	716,600	254,399

 

Corporate Highlights (all amounts expressed in US dollars unless otherwise noted)

 

• - Closing of $5.4 Million Non-Brokered Equity Financing: On April 12, 2021, the Company announced that it had closed its non-brokered equity financing previously announced on March 15, 2021 (the “Offering”). Pursuant to the Offering, the Company issued 27,071,000 units for gross proceeds of $5,414,200, which was increased due to strong investor demand from an initial target of $5,000,000. Each unit was priced at $0.20 and was comprised of one common share of the Company and one-half of one warrant to purchase a common share of the Company at a price of $0.30 for a period of 2 years from the closing date of the Offering.  

 

• - Binding LOI to Acquire GX Technologies: On March 15, 2021, the Company announced that it had entered into a letter agreement pursuant to which it intended to acquire all of the issued and outstanding shares of GX Technologies, Inc., in exchange for 25,000,000 common shares of G6 at a deemed price of $0.20 per common share of the Company (the “Transaction”). The Transaction is expected to establish a world-leading research, corporate and project development team focused on the commercialization and industrial-scale production of graphene-enhanced materials and technologies.

 

• - Air Purification Products: As previously announced, the Company’s research team is developing a graphene-based technology for an enhanced air filtration system for which a provisional patent application was filed on May 8, 2020 to protect the intellectual property rights. The company is working with a manufacturer partner overseas to make the air purification equipment to be sold in the US market. The Company is engaged with an independent testing laboratory to perform various tests of the products being developed, including the safety certification, performance testing as well as microbiological testing.

 

• - Debt Facility: On September 11, 2020, the Company entered into a loan agreement with an arm’s length third-party company, pursuant to which the Company can draw up to an aggregate principal amount of $1,500,000 dollars on an unsecured basis for 6 months. On December 21, 2020, the Company had drawn $250,000 from the loan.  As at December 21, 2020, the Company had drawn $250,000 from the loan.  Subsequently, on April 5, 2021 the Company repaid the $250,000 principal amount of the loan, the commitment fee of $25,000 and accrued interest of $10,618.

  

About G6 Materials Corp.

 

G6 Materials Corp. is a technology company creating value through the development of innovative graphene-based solutions. 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, fine chemicals, 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. is developing other innovative products including graphene-enhanced air purifiers and it hopes to enter the global filtration market once all testing is complete and applicable government approvals are received.

 

G6 has identified new graphene-based applications to accelerate growth into the future. Accordingly, the Company has a valuable IP portfolio currently comprised of three granted patents, three provisional patents and five patent applications filed. 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., a wholly owned subsidiary of G6 located in Ronkonkoma, New York, has established its premium research laboratory and scalable production facility is equipped with advanced analytical and material processing equipment.

 

The Company’s e-commerce websites are listed below:

 

• - Conductive Epoxies: Adhesive materials distributed under the G6-EpoxyTM trade name and can be purchased at g6-epoxy.com

  - Fine Chemicals: ChemApproach is a worldwide supplier of a wide variety of unique chemical building blocks, which can be found at chemapproach.com

  - RD Materials: Graphene Laboratories Inc. currently offers over 100 graphene and related products available at Graphene-Supermarket.com

Forward-Looking Information

 

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 information about the acquisition of GX Technologies; the use of proceeds of the Offering; the potential for the Company’s long-term growth; the business goals and objectives of the Company, and other forward-looking information includes but is not limited to information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon.

 

Risk factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, the acquisition of GX Technologies may not completed on the terms currently anticipated, or at all; the combined company may not expand is  pilot facility to produce graphene oxide in Long Island, New York on the terms currently anticipated, or at all; the combined company may not achieve its key milestones and value drivers in the time estimated, or at all; the risks associated with outstanding litigation, if any; risks associated with adoption by industries of graphene-based products health and environmental factors affecting adoption of these technologies; the company may fail to obtain appropriate government approvals or accreditation related to the business’ operations and technological processes; the results of the tests being performed by an independent laboratory may be unsatisfactory and prevent the company from receiving government approvals and accreditations; 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; the absence of dividends; competition; dilution; the volatility of our common share price and volume; and tax consequences to U.S. shareholders.

 

In connection with the forward-looking information contained in this news release, the Company has made assumptions about the ability to complete the acquisition of GX Technologies, including obtaining TSXV final acceptance; the benefits to completing the acquisition of GX Technologies; and there will be no regulation or law that will prevent the combined company from operating its business. The Company has also assumed that no significant events occur outside of the G6 and GX’s normal course of business.

 

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.

 

Commercial Inquiries

Daniel Stolyarov, President & CEO

Telephone: (631) 405-5113

Email: info@g6-materials.com

 

Investor Inquiries

G6 Investor Relations

Telephone: (631) 405-5114

Email: investors@g6-materials.com

 

ON BEHALF OF THE BOARD:  Daniel Stolyarov, President & CEO

 

SOURCE: G6 Materials Corp.

 

For more information on G6 Materials Corp., please visit www.G6-Materials.com or its profile page on SEDAR at www.sedar.com.