GPHBF - G6 Materials Reports Strong 3Q21 Financial Results

(TheNewswire)

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

Ronkonkoma, New York, USA - TheNewswire - April 30, 2021 - G6Materials Corp. (“G6” or the “Company”) (TSXV:GGG )( OTC:GPHBF) , a technology company creating value through the developmentof innovative graphene-based solutions , ispleased to announce that it has filed its unaudited financial resultsfor the third quarter of the fiscal year ending February 28, 2021, thehighlights of which are included in this news release. The full set ofCondensed Interim Consolidated Financial Statements and ManagementDiscussion and Analysis can be viewed by visiting G6’s website at www.g6-materials.com or itsprofile page on SEDAR at www.sedar.com .

Financial Highlights (all amountsexpressed 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 reportedfor the same period of the prior year, which was primarily due toconsulting services provided to third-party clients, the ongoing saleof the Company’s air purification products and the receipt of aone-time payment as per the terms of a license and optionagreement.

  - Gross profit for the nine-month period ended February28, 2021 was $704,944, a 339% increase from the $160,620 reported forthe same period of the prior year, due to the same aforementionedreasons, while partially offset by a recent increase in the shippingcosts of direct materials from the imports of air purificationmaterials.

  - Total expenses for the nine-month period endedFebruary 28, 2021 were $1,308,452, as compared to $913,208 for thesame period of the prior year, primarily due to an increase inresearch and development expenses as per the terms of a license andoption agreement associated with the aforementioned one-time cashpayment, as well as the $268,579 of share-based compensation relatedto the issuance of the options on October 14, 2020.

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

  - Total assets for the period ended February 28, 2021increased by 39% to $1,617,187 from $1,165,686 for the year ended May31, 2020 and a 119% increase from $740,029 reported for the sameperiod of last year.

Management Commentary

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

Summary of Key Quarterly FinancialMeasures

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

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

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

• - Binding LOI to Acquire GXTechnologies: On March 15, 2021, the Companyannounced that it had entered into a letter agreement pursuant towhich it intended to acquire all of the issued and outstanding sharesof GX Technologies, Inc., in exchange for 25,000,000 common shares ofG6 at a deemed price of $0.20 per common share of the Company (the“Transaction”). The Transaction is expected to establish aworld-leading research, corporate and project development team focusedon the commercialization and industrial-scaleproduction of graphene-enhanced materials and technologies.

• - Air PurificationProducts : As previously announced, theCompany’s research team is developing a graphene-based technologyfor an enhanced air filtration system for which a provisional patentapplication was filed on May 8, 2020 to protect the intellectualproperty rights. The company is working with a manufacturer partneroverseas to make the air purification equipment to be sold in the USmarket. The Company is engaged with an independent testing laboratoryto perform various tests of the products being developed, includingthe safety certification, performance testing as well asmicrobiological testing.

• - Debt Facility: On September 11, 2020, the Company entered into a loanagreement with an arm’s length third-party company, pursuant towhich 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 December21, 2020, the Company had drawn $250,000 from the loan. Subsequently, on April 5, 2021 the Company repaid the $250,000principal amount of the loan, the commitment fee of $25,000 andaccrued interest of $10,618.

About G6 Materials Corp.

G6 Materials Corp. is a technology company creatingvalue through the development of innovative graphene-based solutions.Graphene Laboratories Inc., a wholly owned subsidiary of G6, sells arange of graphene-based products and other materials, including butnot limited to conductive epoxies, fine chemicals, high performancecomposites and R&D materials, with numerous customers from amongthe Fortune 500 list of companies, as well as NASA and leadinguniversities. Graphene Laboratories Inc. is developing otherinnovative products including graphene-enhanced air purifiers and ithopes to enter the global filtration market once all testing iscomplete and applicable government approvals are received.

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. Graphene Laboratories Inc., a wholly ownedsubsidiary of G6 located in Ronkonkoma, New York, has established itspremium research laboratory and scalable production facility isequipped with advanced analytical and material processing equipment.

The Company’s e-commerce websites are listedbelow:

• - 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 contains forward-looking statements within the meaning of the applicablesecurities legislation that is based on expectations, estimates andprojections as at the date of this news release. By their nature, forward-looking statements involve known andunknown risks, uncertainties and other factors which may cause actualresults, performance or achievements, or other future events, to bematerially different from any future results, performance orachievements expressed or implied by such forward-looking statements.“Forward-looking information” in this news release includesinformation about the acquisition of GX Technologies; the use ofproceeds of the Offering; the potential for the Company’s long-termgrowth; the business goals and objectives of the Company, and otherforward-looking information includes but is not limited to informationconcerning the intentions, plans and future actions of the parties tothe transactions described herein and the terms thereon.

Risk factors that could cause actual results to differmaterially from those described in such forward-looking informationinclude, but are not limited to, the acquisition of GX Technologiesmay not completed on the terms currently anticipated, or at all; thecombined company may not expand is  pilot facility to producegraphene oxide in Long Island, New York on the terms currentlyanticipated, or at all; the combined company may not achieve its keymilestones and value drivers in the timeestimated, or at all; the risks associated with outstandinglitigation, if any; risks associated with adoption by industries ofgraphene-based products health and environmental factors affectingadoption of these technologies; the company may fail to obtainappropriate government approvals or accreditation related to thebusiness’ operations and technological processes; the results of thetests being performed by an independent laboratory may beunsatisfactory and prevent the company from receiving governmentapprovals and accreditations; the market conditions and demand for itsproduct as well as the market prices of such products being developedby the company may change over time; reliance on key personnel; thepotential for conflicts of interest among certain officers, directorsor promoters with certain other projects; the absence of dividends;competition; dilution; the volatility of our common share price andvolume; and tax consequences to U.S. shareholders.

In connection with the forward-looking informationcontained in this news release, the Company has made assumptions aboutthe ability to complete the acquisition of GXTechnologies , including obtaining TSXV finalacceptance; the benefits to completing theacquisition of GX Technologies ; and there willbe no regulation or law that will prevent the combined company fromoperating its business. The Company has also assumed that nosignificant events occur outside of the G6 and GX’s normal course ofbusiness.

The Company undertakes no obligation to revise orupdate any forward-looking information other than as required bylaw.

Neither TSX VentureExchange nor its Regulation Services Provider (as that term is definedin the policies of the TSX Venture Exchange) accepts responsibilityfor 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., pleasevisit www.G6-Materials.com or its profile page on SEDAR at www.sedar.com.

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