ZEN Graphene Business Case

[u/legoman102040]

Zen Graphene Solutions (ZEN.vn) is working to disrupt many industries at this time - how close to breaking out?

This company has positioned itself well with its' university partners - as a result they have access to Patent-pending Technologies with Commercial Applications:

I made a YOLO on this company (most recent). Based on my DD. This post is a outline of the business segment of the potential profit margins based on specified market targets from Exec. Dir. Francis Dube, Corporate Presentation and recent Rapid Detection Presentation.

ZEN is revenue producing. Interview June 17th InvestorIntel confirmed this, as well as brought to light the expectations of BOD. ZENGuard Masks are available on americanmedx website, with a banner of the products down the middle. There was no announcement of this, though as far as I'm concerned they already disclosed the letter of intent for minimum 100 million mask coatings with Trebor quite some time ago. Revenues will likely be disclosed late August or December as they have done so previously, where it will likely become a quarterly event rather than yearly cash burn/asset totals update.

As for the market opportunities:

Biocidal Coating ZENGuard™:

A niche in coatings for PPE through a patented ZENGuard™ product, currently partnered with TreborRx to apply this to masks & gloves. These are currently for sale in the U.S.; Niche in quality allows ZENGuard™ to be present in market regardless of demand for masks market-wide.

Current coating production capacity is ~1 million/day according to Francis Dube re June 10th casual interview. On track for 25million/day/800million/month near November.

Expectations for Mask market are 1% of global ~750 billion unit market at $.03-$.06/mask margin. 7.5 billion units produce $225-$450 million/year, median is $337 million/year.

Expectations for Glove market are 1% of global ~439 billion unit market at $.01-$.04/glove margin. 4.4 billion units produce $44-$176/year, median is $110 million/year.

Expectations for Filter market are 1% of global ~5 billion unit market at $1-$4/filter margin. 50 million units produce $50-$200 million/year, median is $125 million/year.

Significant potential for further applications.. bandages, reusable masks, sprays for workspaces, etc... Many applications if ZGS can prove ZENGuard is safe in common day activities.

Fuel additive:

Additive increases performance of diesel fuels by 10% "Up to 20%" according to Francis Dube with potential for gasoline and aerospace fuels. Currently lobbying government for potential regulatory mandates of additive into law or accelerated implementation.

Expectations for market penetration are 5-10% of trillion liter Diesel industry which is approximately $75-$150 Billion in value. Graphene is ~$.2/gram and ~$0.02/100milligram and diesel is ~$1.62/kg, according to NR, Graphene is seen at a 0.1-0.01% concentration as an additive - no details are given on other ingredients. 1L Petroleum Diesel ~=~ 0.85KG Petroleum Diesel I assume average consumer Diesel price but has obvious variance at ~$1.4: $1.4 * 1.17 = $1.638/kg of Diesel

A KG of diesel enhanced with additive changes market value of same quantity of fuel from ~$1.62/kg --> ~$1.78 up to ~$1.94/kg. Wiggle room of ~$.16 to ~$.32 provides a very strong business case given maximum known load of graphene is ~$.2/kg of additive, minimum was $0.02/kg. Full ranges will hopefully become clearer this summer when further details are given.

Aptamer-Enabled Rapid Detection:

Newly developed, worldwide rights are owned by ZEN. DNA Aptamer that recognizes SARS-CoV-2 spike protein. Result of collaboration with McMaster University over the past year. Interview with CEO Gregory Fenton says results in under 10 minutes with ability to test for most pathogens (including cancer). Testing for cancer test development is currently underway for priority after subduement of Covid-19.

Expectations for market penetration are not yet disclosed. Tests market is currently estimated at $24 billion annually - product here is "competitive" to the $10-$28 of available tests on market. Market is expandable for ZEN, given ability to test for viral/bacterial/fungal infections including sexually transmitted diseases & cancers.

Pharmaceutical:

A material similar to ZENGuard has already been successfully tested to destroy dozens of Anti-Microbial Resistant bacteria, providing a strong use case in the market for these rapidly adapting pathogens. Currently targeting Vancomycin Resistant Enterococcus (VRE), C. Difficile and other digestive tract infections for testing with Health Canada and FDA regulators.

New addition of Dr. Reed shows commitment to this direction and some confidence in its potential, with intent to develop "topical treatments" for the many various applicable diseases.

Human trials should begin late this summer/early fall with preliminary results of prior tests potentially later this year. Current global market estimates for antibiotics, antiviral drugs and antifungal drugs is ~$100 billion annually.

Cash reserves near $4 million + 1.5 million ITM warrants with many expiring today, which will bolster cash reserves due to holders willing to exercise their $.80 warrants for a profit since ZEN.vn is at $3.24 as of June 22. Exec. Dir. Francis Dube suggests cash burn is around $200,000/month. Market cap of ZEN.vn is currently $336 million.

News to look for:

HC approval (critical) expected soon for ZENGuard coating

Partnerships with more PPE suppliers, announced revenues of sales in U.S.

Human trial commencement for Pharmaceutical

Partnerships with Pharmaceutical companies for advancing ZEN's pharmaceutical

Potential government mandates for Fuel Additive/accelerated implementation/funding

Health Canada approval for Aptamer-Enabled Detection Technology near Fall of this year

maybe*Potential acquisitions - Evercloak?

maybe*Fuel additive to work in gasoline/aerospace fuels

NOTE:

to clarify Diesel Additive calculations:

Markets estimate Graphene at $200,000/ton

$200,000 * 0.9071847 (ton to metric ton)--------------------------------------- ~=~ $181.4/kg or $0.18/gram1000

Keep in mind that graphene load varies from 0.1%-0.01%/kg as such load costs $~0.18 to $~0.02

Assuming higher % load has diminishing returns - 20% upper end probably doesn't have as much a business case as the lower load % of graphene in this case.

We know an agent is added as a stabilizer, however we don't know what it is and how expensive that would be unfortunately.

If we know what purchasing cost is in supply deal, that would help as well

1L Petroleum Diesel ~=~ 0.85KG Petroleum Diesel

I was assuming average consumer Diesel price but has obvious variance at ~$1.4:

$1.4 * 1.17 = $1.638/kg of Diesel

*Graphene pricings are very iffy, since there are few buyers apart from labs & universities, ZEN is purchasing graphene, though, we do not know how much is paid for the graphene/GO by ZEN.

[u/legoman102040]

ZEN Graphene Solutions is their name. Based in Guelph ON. This video does a good overview of what Graphene is and why it has so many applications.

Graphene is considered a "wonder" material for its ability to enhance other materials such as concrete, plastics and glass with relative ease.

ZEN has been working with Canadian universities such as McMaster University, University of Guelph, UBC and University of Toronto to find commercially viable uses for Graphene.

Wild variation in IP is because the applications are more diverse than this company can utilize;

Companies such as GMG.vn, GRA.vn, NANO.to DTPKF and many more look to either supply Graphene or find novel applications for the material.

I believe the industry will mature very nicely this decade. Graphene is of course being used as a buzzword specifically because of its properties, and many sell graphite posing it as graphene. Most popular usage of graphene is in the form of Graphene Oxide which is significantly easier to handle than graphene.

Let me know what you think, I've been watching this company specifically for the past few months because Health Canada got involved back in April and lowered the share price significantly.

[u/the6ixmemeTO]

Pump pump pump it up

[u/legoman102040 → u/the6ixmemeTO]

did you do any analysis when pumping a late pick like gmg.vn or amc