New York-based Graphene 3D Lab, (TSXV: GGG and OTCQB: GPHBF), has released a shareholder update, reviewing the significant events of 2015 and the busy year ahead in 2016. Somewhat hidden away in the company’s investor presentation (page 10) is guidance for sales to grow to +$5 million this year.
Shares issues & outstanding: 49.4 million
The shareholder update is below.
Graphene 3D Lab fuses basic materials research and product development in graphene and other innovative materials with a commitment to the technologies surrounding advanced composites. With the acquisition of Graphene Labs, in an all share arrangement, Graphene 3D Lab has two main lines of business:
1. The production of research grade graphene and other nanomaterials for corporate, university and government research labs.
2. Rapid commercialization of 3D Printing technologies including graphene infused polymer filaments and other functional filaments
Industrial Materials Division
We are delighted to announce a third line of business, the Industrial Materials Division, to be devoted to development of high volume graphene-infused polymers for the automotive, robotics, drone, aerospace and military industries.
As a critical step in this direction, we have finalized installation and testing of a state of the art twin-screw extruder manufactured by Thermo Fisher. This specialized equipment allows Graphene 3D to create advanced composite materials with exceptional accuracy in shorter working times. The extruder will help to incorporate graphene into materials that well suited for industrial production of new or existing products that are lighter, stronger, and more flexible than their current commercial counterparts. The company is now able to respond faster to the increased demand we are seeing from manufacturers who wish to partner with us.
ll three of these business lines are closely tied to each of the others and we are developing the capacity to innovate and commercialize products by applying our company’s rapidly expanding knowledge base. The past year has been spent developing new product lines, expanding our production capacity and integrating Graphene Labs into the 3D Lab business. At each stage of our development as an innovative materials company, we are securing Intellectual Property which we believe will be critical to the future of materials science and 3D printing.
Graphene Laboratories, Inc. Acquisition
The acquisition of Graphene Laboratories has given Graphene 3D Lab and its products exposure to thousands of the leading researchers in the graphene and nanomaterials field. We are confident this will increase sales and put our innovative products in the hands of leading edge scientists and technologists.
Acquiring Graphene Labs has brought us approximately one million dollars per year in revenue from sales of graphene and other nanomaterials. It has also brought us exposure to the over 10,000 clients Graphene Labs has developed since 2009. These include nearly every Fortune 500 tech company and major research university. Some notable clients are NASA, HP, Ford Motor Co., GE, Apple, Xerox, Samsung, Harvard University, IBM, MIT, Yale, and Stanford University. Being in touch with some of the world’s leading materials scientists and having Graphene Lab’s track record of success makes product introduction much more straightforward and gives us insight into where the materials industry is heading.
Through Graphene Labs’ website, Graphene Supermarket (www.graphene-supermarket.com), we offer a wide array of Graphene related products in the form of solutions, powders, and films—all of which yield impressive profit margins. Sales from the Supermarket are usually to researchers at the beginning stages of projects. As the project progresses larger quantities of our products are required and through our well established relationship, our company is in the perfect position to fulfill this order.
Production of Materials for 3D Printing
In 2015, we invested heavily in production equipment establishing our fully operational production line. Our first filament product, a 3D printable graphene conductor, is now established in the market. Our recent release of new magnetic and nylon filaments demonstrates our capacity to manufacture many specialized filament products. We expect to put out several more filaments with innovative properties in the upcoming months as we continue to increase our customer base. Our upgraded extrusion lines and increased production capacity will improve the profit margins on 3D printing products. In house production gives 3D Lab significant advantages in the specialty filament market. We can produce on demand, control quality and, where warranted, accept custom orders. Maintaining our own production capacity allows us to make proprietary filaments without exposing our IP or trade secrets.
Industrial Scale Graphene Production
As a materials company, Graphene 3D Lab is committed to manufacturing products with significant added value. To achieve high volume production of composites, it is essential to have a solid supply of high quality graphene material. In the last two years the company has developed a unique approach to produce graphene nanoplatelets based on separating the graphene platelets from natural graphite feedstock. We anticipate an increased demand for our graphene composite materials for 3D printing and other applications. To satisfy the demand we need to scale up the production of graphene nanoplatelets. Our graphene production method could be fully automated and run continuously. Once completed, our production facility is anticipated to be producing tens of kilograms of graphene per day. With this technology, we fully control the supply chain: from basic materials to final graphene enabled products.
We thank you for your continued interest and support.
On behalf of the management,
Perhaps most importantly, Graphene 3D Lab is also giving guidance to “Grow company revenue to +$5 million” by the end of 2016″
see full Q1,2016 investor presentation.
With 49.4 million shares issued and outstanding, the market cap of Graphene 3D Lab is $16 million USD.
Given the dramatic sales growth expected this year, I am extremely bullish on the stock and believe it is the best stock in the 3D printing space to buy now.
Disclosure: I am long shares of Graphene 3D Lab. I was not paid by any company or person for this article.