GGG:CC - G6 Materials Shares CEO Update Letter

(TheNewswire)

The Letter Includes a Short-Term Planto 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 MaterialsCorp. (“G6” or the“Company”) (TSXV:GGG ) ( OTC:GPHBF), ahigh-tech company with expertise in advanced materials and developinginnovative composites for a wide range of industrial uses, is pleasedto 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 nameis Kevin Cornish, and I started my time with G6 Materials Corp.(“G6” or the “Company”) in May of 2023 as the Chief FinancialOfficer during the Company’s corporate restructuring. Over the lastsix months, I have evaluated G6’s strengths and weaknesses and thestrategic opportunities for the road ahead. Having taken over the roleof Chief Executive Officer in late October, it has been a busy timeplanning for the Company’s future. That being said, I intend tomaintain regular communication through G6’s website, social media,news releases, and monthly email updates.

Long-Term Strategy

As many of you may recall, G6 was founded on fantasticresearch and development (“R&D”) principles, forming thefoundation 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-termcommercialization strategy. Yes, this means we will aim tocommercialize our R&D and revolutionize target industries throughadvanced materials. We plan to transition to a longer-term plan whilemaintaining a short-term focus on current revenue-generating divisionsand evaluating current opportunities across select industries. G6 willnot abandon its foundation in R&D; however, the Company's primaryfocus will no longer be R&D. Rather, G6 will focus on thecommercialization of its portfolio of intellectual property createdover the years. Many long-term investors have been asking for theCompany to evolve this way, and the board of directors and I have beenlistening.

The commercialization of R&D into a long-termcompetitive strategy for the Company is expected to be accomplishedthrough our knowledge of composite materials,conductive epoxies, and resins. The best opportunity that we have infront of us is to focus on marine drones. We will pursue thisopportunity under a new robotics division, which will anchor ourlong-term strategy for the foreseeable future.

Short-Term Plan

Our short-term plan will capitalize on opportunitiesthat leverage current technologies within our IP portfolio andadditional opportunities that we see in the marketplace. This isexpected to include evaluating applications in precious metal recoveryand ways to improve the performance of the next generation oflithium-ion batteries. These short-term focus areas will complementthe longer-term strategy while effectively utilizing our currentcapacity and resources. The goal is for our short-term plan andlong-term strategy to support each other, and we will continuallyevaluate them for their efficiency, effectiveness, ability to addvalue to the Company, and ultimately create shareholder wealth.

Cost Optimization

Since May, we have completed a corporate restructuringthat reduced expenses by hundreds of thousands of dollars annually andstreamlined G6’s personnel. We continue to refine our leanerstructure and have already seen the benefits of these changes in ourQ1 financial results, which showed that our operating expensesdecreased by 34% percent over the same period of the previous year. Weintend to continuously improve financially and operationally,quarterly, year after year. This initiative will take some time, butwe expect to make more changes in early 2024 with more near-termbenefits.

Financial Goals

A forecast has beenprepared using assumptions (all of which are supportable and reflectthe Company’s planned courses of action for the period covered) asto the most probable set of economic conditions. Accordingly, we aimto increase revenue to $3 million by May 31, 2025, with the earliergoal of achieving $2.2 million in revenue by the end of 2024. G6 alsoaims to improve its financial reporting over the next 24 months withrespect to segment and division-based disclosures. These targets arereasonable and achievable based on the growth opportunities in frontof us today. Please note that achieving revenue of $3 million infiscal 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 theexpectation of enhancing the Company’s cash position in the nearterm. We plan to increase our revenue in both segments bytransitioning to a B2B model from our mostly B2C model currently. Wealso plan to introduce our graphene-enhanced air filters to newmarkets and evaluate other opportunities for product-marketdiversification worldwide. Focusing on existing customers andstrengthening current relationships will be a primary objective, aswell as adding new customers, while robotics-based revenuematerializes over the long term.

Conclusion

As with any new corporate strategy, it takes time tosee results. However, any significant opportunities that G6 considerswill be evaluated for a minimum of three months on a qualitative andquantitative 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 thisletter, please feel free to email me atkevin.cornish@g6-materials.com.

Sincerely,

Kevin Cornish, Interim President & CEO

G6 Materials Corp.

About G6 Materials Corp.

G6 Materials Corp. is a high-tech company withexpertise in advanced materials that creates value developinginnovative composites for a wide range of industrial uses. GrapheneLaboratories Inc., a wholly owned subsidiary of G6, sells a range ofgraphene-based products and other materials, including but not limitedto conductive epoxies, high-performance composites, and R&Dmaterials, with numerous customers from among the Fortune 500 list ofcompanies, as well as NASA and leading universities. GrapheneLaboratories Inc. has entered the global air filtration market withBreathe + , a line of medical-grade HEPA air filtration productsenhanced with advanced performance graphene material.

G6 has identified new graphene-based applications toaccelerate growth into the future. Accordingly, the Company has avaluable IP portfolio currently comprising seven granted patents. TheCompany’s management team and employees have a deep understanding of graphene technology based on decades ofaggregate academic and commercial experience. Graphene LaboratoriesInc. has established its premium research laboratory and scalableproduction facility equipped with advanced analytical and materialprocessing equipment.

The Company’s e-commerce websites are listedbelow:

• Breathe : Medical-grade HEPA airfiltration enhanced with advanced performance graphene material, formore information, visit www.breatheplus.tech

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

• D Materials: Graphene Laboratories Inc. currentlyoffers over 100 graphene and related products available at www.graphene-supermarket.com

Forward-Looking Information

This news release contains forward-looking statementswithin the meaning of the applicable securities legislation that isbased on expectations, estimates and projections as at the date ofthis news release. By their nature, forward-looking statements involveknown and unknown risks, uncertainties and other factors which maycause actual results, performance or achievements, or other futureevents, to be materially different from any future results,performance or achievements expressed or implied by suchforward-looking statements. “Forward-looking information” in thisnews release includes but is not limited to information about thegraphene-enhanced air purifier (including efficacy, potentialcommercialization and patent pending thereof); information about thepotential for the Company’s long-term growth; the business goals andobjectives of the Company, and other forward-looking informationconcerning the intentions, plans and future actions of the parties tothe transactions described herein and the terms thereon.

The forward-looking information in this news releasereflects the current expectations, assumptions and/or beliefs of theCompany based on information currently available to the Company.Although the Company believes that the assumptions inherent in theforward-looking information are reasonable, forward-lookinginformation is not a guarantee of future performance and accordinglyundue reliance should not be put on such information due to theinherent uncertainty therein.

Risk factors that could cause actual results to differmaterially include, but are not limited to, the actual results incommercial applications of the Company’s graphene-enhanced airpurifier may differ significantly from its test results; health andenvironmental factors affecting the adoption of the Company’sgraphene-based technologies or other products; the Company may fail toobtain appropriate government approvals or accreditation related tothe business’ operations and technologicalprocesses; the market conditions and demand for its product as well asthe market prices of such products being developed by the Company maychange over time; reliance on key personnel; the potential forconflicts of interest among certain officers, directors or promoterswith certain other projects; competition; dilution; and the volatilityof our common share price and volume.

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

Neither TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in the policiesof the TSX Venture Exchange) accepts responsibility for the adequacyor accuracy of this release.

Corporate Inquiries

Kevin Cornish, Interim President & Chief ExecutiveOfficer

Telephone: (516) 382-8649

Email: kevin.cornish@g6-materials.com

Commercial Inquiries

Elena Polyakova, Chief Operating Officer

Email: info@g6-materials.com

Investor Inquiries

Nick Kuzyk, Investor Relations

Telephone: 1-(866)-324-4244

Email: investors@g6-materials.com

ON BEHALF OF THE BOARD:  Gary Dyal, Chairman

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

SOURCE: G6 Materials Corp.

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