ZEN Graphene Solutions (TSXV: ZEN) (OTCQB: ZENYF), an emerging graphene technology solutions company with a focus on the development of graphene-based nanomaterial products and applications, has purchased, for immediate delivery, approximately 200 kilograms of graphene oxide. In addition, the company has negotiated terms to purchase additional graphene oxide by the tonne commencing in January 2021.
For more information, please view the InvestmentPitch Media "video" which provides additional information about this news along with video comments from Dr. Francis Dubé, CEO of ZEN Graphene. If this link is not enabled, please visit www.InvestmentPitch.com and enter "ZEN Graphene" in the search box.
This Purchase Agreement will permit ZEN to fulfill its obligations under a previously announced binding letter of intent with Trebor Rx Corp., a Canadian personal protective equipment mask manufacturer, and will also provide additional supply capacity for ZEN's viricidal coating in the PPE and HVAC filtration markets. Under its binding LOI, Trebor is initially purchasing a quantity of ZEN's patent pending graphene based viricidal coating for a minimum of 100 million masks/filters with pricing of these mask/filters being variable based on a number of factors. This initial minimum order is for the first year and is subject to Health Canada approvals.
George Irwin, Trebor CEO, stated: "This is truly a game changer in the PPE space. Trebor is ecstatic to be working with such an innovative company. With our production on the Pro+ mask already started and our 3Ply beginning in December of this year we anxiously await the production of masks with the ZEN viricidal coating. Trebor's goal is to deliver a quality Canadian made product and it just got better with ZEN as our partner."
Graphene oxide is a key ingredient in the manufacturing of ZEN's patent-pending graphene based viricidal coating with 99% viricidal activity against COVID-19.
Given the numerous expressions of interest for ZEN's viricidal coating, management decided to source graphene oxide from third party suppliers. ZEN evaluated five graphene oxide samples from five different companies for quality, price, suitability as an input for the viricidal coating, and the ability to promptly deliver significant quantities. After a rigorous quality control process, ZEN has identified the best supplier for graphene Oxide for its viricidal coating and executed this purchase agreement, which will bridge ZEN for its commercial obligations and future opportunities for its patent-pending graphene-based viricidal coating until its vertically integrated supply chain is fully permitted.
ZEN continues to work closely with ERM Consultants Canada Ltd. to apply for these necessary permits to enable the production of purified Albany Pure™ graphite, graphene oxide, and its viricidal coating at its new 1123 York Road, Guelph manufacturing facility. Zen's Albany Graphite Deposit is located in northeastern Ontario, near the community of Constance Lake First Nation and the town of Hearst, about 30 kilometers north of the Trans-Canada Highway.
The company is well funded, with over $2.5 million currently on its balance sheet with no outstanding debt. The company recently received approximately $655,000 from the exercise of warrants, with the potential to raise another $2.6 million. Although approximately $2.2 million is subject to an acceleration clause, the company has no plans to accelerate those warrants at this time as it continues to see warrants being exercised voluntarily.
About InvestmentPitch Media
InvestmentPitch Media leverages the power of video, which together with its extensive distribution, positions a company's story ahead of the 1,000's of companies seeking awareness and funding from the financial community. The company specializes in producing short videos based on significant news releases, research reports and other content of interest to investors.
Barry Morgan, CFO
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/69836