Highest Quarterly Revenues Since Inception plus Positive Comprehensive Income

Ronkonkoma, New York, USA – TheNewswire – November 2, 2020 – G6 Materials Corp. ("G6" or the "Company") (TSXV:GGG) (OTC:GPHBF), a technology company and world-leader in creating value through the development of innovative graphene-based solutions, is pleased to announce that it has filed its unaudited financial results for the first quarter of the fiscal year ending August 31, 2020, 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 first quarter ended August 31, 2020 reached a record level of $1,169,426, which is a 188% increase from the $406,684 reported for the fourth quarter of 2020 and a 497% increase from the $195,928 reported for the same period of the prior year, which was primarily due to strong customer demand for 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 first quarter ended August 31, 2020 was $426,608, a 925% increase from the $41,625 reported for the fourth quarter of 2020 and a 481% increase from the $73,469 reported for the same period of the prior year, which was also primarily due to strong customer demand for the Company’s air purification products and the receipt of a one-time payment as per the terms of a license and option agreement

    – Comprehensive income for the first quarter ended August 31, 2020 was $110,765, as compared to the $251,168 comprehensive 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 research and development as well as lower general and administration expenses from 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 fourth quarter of 2020 and a 39% increase from $1,057,297 for the same period of last year

Management Commentary

"The first fiscal quarter of 2021 was a significant milestone for G6 as we generated our best financial results in the history of the Company. Overcoming the challenges of early 2020, strategically pivoting the business and successfully capitalizing on a new market opportunity are all key accomplishments as G6 continues to evolve and grow," said Daniel Stolyarov, President & CEO of G6 Materials Corp. "I would like to express my appreciation for the great efforts of our team to achieve these record quarterly results, as well as my gratitude to all customers who purchased our air purification products. We are excited to bring graphene-enhanced air filtration products to market and further commercialize G6’s intellectual property in this area," added Mr. Stolyarov.

Summary of Key Quarterly Financial Measures

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

(All amounts expressed in US Dollars unless otherwise noted.)

Quarter

ended

Aug 31,

2020

$

Quarter

ended

May 31,

2020

$

Quarter

ended

Feb.29,

2020

$

Quarter

ended

Nov.30,

2019

$

Quarter

ended

Aug 31,

2019

$

Revenue

1,169,42

406,684

169,237

150,765

195,928

Cost of goods sold

(742,818)

(365,059)

(104,636)

(128,215)

(122,459)

Gross profit (loss)

426,608

41,625

64,601

22,550

73,469

Operating expenses

(301,554)

(327,385)

(292,789)

(366,501)

(253,918)

Net income (loss)

125,554

(261,760)

(228,188)

(343,951)

(180,449)

Comprehensive income (loss)

110,765

(251,168)

(226,213)

(343,996)

(180,735)

Net income (loss) per share (basic and diluted)

$0.002

($0.002)

($0.003)

($0.005)

($0.002)

Total assets

1,472,872

1,165,686

740,029

896,299

1,057,297

Shareholders’ equity

855,942

716,600

254,399

480,612

664,136

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

  • – Air Purification Products: In the second half of the 2020 fiscal year, the Company added a line of existing air purification products to its portfolio to address the step-change in demand for air purification products primarily as the result of the global coronavirus pandemic. The sale of these products accelerated significantly during the first quarter of the 2021 fiscal year, which is evident in the Company’s financial results. Further, the Company’s research and development team developed a graphene-based technology for an enhanced air filtration system for which a provisional patent application was filed to protect the intellectual property rights.

  • – License and Option Agreement: On June 23, 2020, the Company entered into a License and Option Agreement with a US-based clinical-stage biopharmaceutical company. As per the agreement, the Company received a one-time cash payment of $220,000 by granting the partner an exclusive license to use the intellectual property for a period of two years. Further, the partner will also have an option to purchase the Company’s intellectual property rights for an incremental $1,000,000 during the license period.

  • – Debt Facility: The Company has entered into a loan agreement with an arm’s length third-party company, pursuant to which G6 can now draw up to an aggregate principal amount of $1,000,000 on an unsecured basis for a one-year term. Any principal amounts drawn under the facility will accrue interest at a rate of 5.0% per year. The loan can be used for general working capital purposes.

About G6 Materials Corp.

G6 Materials Corp. is a technology company and world-leader in creating value through the development of innovative graphene-based solutions. The Company is strategically focused on serving the global air filtration and purification market with new products to meet growing demand. G6 also sells a range of graphene-based products and other materials, including but not limited to 3D printing materials, 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.

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. Located in Ronkonkoma, New York, 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:

  • – 3D Printing: 3D printable filaments can be purchased at BlackMagic3D.com

    – 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

    – 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-looking statements. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address a company’s expected future business and financial performance, and often contain words such as "anticipate," "believe," "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our 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. Such factors include, among others, the following risks: 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; 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. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements. Albeit the operation of newly suggested products are based on strong scientific evidence, the Company cannot guarantee the performance parameters of the new products and their efficiency against the specific microbes including all types of viruses and bacteria until testing is completed. Further, the Company can not guarantee any outcomes of such testing.

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

Commercial Inquiries

Daniel Stolyarov, President & CEO

Telephone: (631) 405-5113

Email: [email protected]

Investor Inquiries

G6 Investor Relations

Telephone: (631) 405-5114

Email: [email protected]

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.

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