GPHBF - G6 Materials Reports Record 1Q21 Financial Results

(TheNewswire)

Highest Quarterly Revenues SinceInception plus Positive Comprehensive Income

Ronkonkoma, New York, USA - TheNewswire - November 2, 2020 - G6Materials Corp. ("G6" or the "Company") (TSXV:GGG )( OTC:GPHBF) , a technology company and world-leader in creating valuethrough the development of innovative graphene-basedsolutions , is pleased to announce that it hasfiled its unaudited financial results for the first quarter of thefiscal year ending August 31, 2020, the highlights of which areincluded in this news release. The full set of Condensed InterimConsolidated Financial Statements and Management Discussion andAnalysis can be viewed by visiting G6's website atwww.g6-materials.com or its profile page on SEDAR atwww.sedar.com .

Financial Highlights (all amountsexpressed in US Dollars unless otherwise noted)

• - Revenue for the first quarter ended August 31, 2020reached a record level of $1,169,426, which is a 188% increase fromthe $406,684 reported for the fourth quarter of 2020 and a 497%increase from the $195,928 reported for the same period of the prioryear, which was primarily due to strong customer demand for theCompany's air purification products and the receipt of a one-timepayment as per the terms of a license and option agreement

  - Gross profit for the first quarter ended August 31,2020 was $426,608, a 925% increase from the $41,625 reported for thefourth quarter of 2020 and a 481% increase from the $73,469 reportedfor the same period of the prior year, which was also primarily due tostrong customer demand for the Company's air purification products andthe receipt of a one-time payment as per the terms of a license andoption agreement

  - Comprehensive income for the first quarter endedAugust 31, 2020 was $110,765, as compared to the $251,168comprehensive loss reported for the fourth quarter of 2020 and the$180,735 comprehensive loss reported for the same period of 2019,which was primarily due to reduced expenses in the areas of researchand development as well as lower general and administration expensesfrom cost-saving initiatives

  - Total assets for the first quarter ended August 31,2020 increased by 26% to $1,472,872 from $1,165,686 for the fourthquarter of 2020 and a 39% increase from $1,057,297 for the same periodof last year

Management Commentary

"The first fiscal quarter of 2021 was asignificant milestone for G6 as we generated our best financialresults in the history of the Company. Overcoming the challenges ofearly 2020, strategically pivoting the business and successfullycapitalizing on a new market opportunity are all key accomplishmentsas G6 continues to evolve and grow," said Daniel Stolyarov,President & CEO of G6 Materials Corp. "I would like toexpress my appreciation for the great efforts of our team to achievethese record quarterly results, as well as my gratitude to allcustomers who purchased our air purification products. We are excitedto bring graphene-enhanced air filtration products to market andfurther commercialize G6's intellectual property in this area,"added Mr. Stolyarov.

Summary of Key Quarterly FinancialMeasures

(with 1Q20 shown for year-over-yearcomparison purposes)

Corporate Highlights (all amountsexpressed in US Dollars unless otherwise noted)

• - Air PurificationProducts : In the second half of the 2020 fiscalyear, the Company added a line of existing air purification productsto its portfolio to address the step-change in demand for airpurification products primarily as the result of the globalcoronavirus pandemic. The sale of these products acceleratedsignificantly during the first quarter of the 2021 fiscal year, whichis evident in the Company's financial results. Further, the Company'sresearch and development team developed a graphene-based technologyfor an enhanced air filtration system for which a provisional patentapplication was filed to protect the intellectual propertyrights.

• - License and Option Agreement: On June 23, 2020, the Company entered into aLicense and Option Agreement with a US-based clinical-stagebiopharmaceutical company. As per the agreement, the Company receiveda one-time cash payment of $220,000 by granting the partner anexclusive license to use the intellectual property for a period of twoyears. Further, the partner will also have an option to purchase theCompany's intellectual property rights for an incremental $1,000,000during the license period.

• - Debt Facility: The Company has entered into a loan agreement with an arm'slength third-party company, pursuant to which G6 can now draw up to anaggregate principal amount of $1,000,000 on an unsecured basis for aone-year term. Any principal amounts drawn under the facility willaccrue interest at a rate of 5.0% per year. The loan can be used forgeneral working capital purposes.

About G6 Materials Corp.

G6 Materials Corp. is a technology company andworld-leader in creating value through the development of innovativegraphene-based solutions. The Company is strategically focused onserving the global air filtration and purification market with newproducts to meet growing demand. G6 also sells a range ofgraphene-based products and other materials, including but not limitedto 3D printing materials, conductive epoxies, fine chemicals, highperformance composites and R&D materials, with numerous customersfrom among the Fortune 500 list of companies, as well as NASA andleading universities.

G6 has identified new graphene-based applications toaccelerate growth into the future. Accordingly, the Company has avaluable IP portfolio currently comprised of three granted patents,three provisional patents and five patent applications filed. TheCompany's management team and employees have a deep understanding ofgraphene technology based on decades of aggregate academic andcommercial experience. Located in Ronkonkoma, New York, its premiumresearch laboratory and scalable production facility is equipped withadvanced analytical and material processing equipment.

The Company's e-commerce websites are listedbelow:

• - 3D Printing: 3D printable filaments can be purchasedat BlackMagic3D.com

  - Conductive Epoxies: Adhesive materials distributedunder the G6-Epoxy TM trade name and can be purchased at g6-epoxy.com

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

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

Forward-Looking Information

This news release may contain forward-lookingstatements. Forward-looking statements are statements that relate tofuture, not past, events. In this context, forward-looking statementsoften address a company's expected future business and financialperformance, and often contain words such as "anticipate,""believe," "plan", "estimate","expect", and "intend", statements that an actionor event "may", "might", "could","should", or "will" be taken or occur, or othersimilar expressions. By their nature, forward-looking statementsinvolve known and unknown risks, uncertainties and other factors whichmay cause our actual results, performance or achievements, or otherfuture events, to be materially different from any future results,performance or achievements expressed or implied by suchforward-looking statements. Such factors include, among others, thefollowing risks: the risks associated with outstanding litigation, ifany; risks associated with adoption by industries of graphene-basedproducts health and environmental factors affecting adoption of thesetechnologies; reliance on key personnel; the potential for conflictsof interest among certain officers, directors or promoters withcertain other projects; the absence of dividends; competition;dilution; the volatility of our common share price and volume; and taxconsequences to U.S. shareholders. Forward-looking statements are madebased on management's beliefs, estimates and opinions on the date thatstatements are made, and the Company undertakes no obligation toupdate forward-looking statements if these beliefs, estimates, andopinions or other circumstances should change. Investors are cautionedagainst attributing undue certainty to forward-looking statements.Albeit the operation of newly suggested products are based on strongscientific evidence, the Company cannot guarantee the performanceparameters of the new products and their efficiency against thespecific microbes including all types of viruses and bacteria untiltesting is completed. Further, the Company can not guarantee anyoutcomes of such testing.

Neither the TSX Venture Exchange nor its regulationservices provider (as that term is defined in policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this news release.

Commercial Inquiries

Daniel Stolyarov, President & CEO

Telephone: (631) 405-5113

Email: daniel.stolyarov@graphene3Dlab.com

Investor Inquiries

G6 Investor Relations

Telephone: (631) 405-5114

Email: investors@graphene3Dlab.com

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

SOURCE: G6 Materials Corp.

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

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