In this InvestorIntel interview with host Tracy Weslosky, Zentek Ltd. (NASDAQ: ZTEK | TSXV: ZEN) CEO and Director Greg Fenton talks about Zentek’s substantial recent newsflow, including listing on NASDAQ and announcing sales and distribution of ZenGUARD™ coated-masks through Mark’s in Canada.

In the interview, which can also be viewed in full on the InvestorIntel YouTube channel (click here), Greg Fenton talks about other recent announcements including the start of Phase 2 testing of ZenGUARD™ antimicrobial coating on HVAC filters under a contract with Innovation Solutions Canada (ISC). He goes on to say that on the success of Phase 2, Zentek can add the Government of Canada as a client as well as opening up new opportunities for sales and distribution. Greg also provides an update on Zentek’s portfolio of patents including the filing of a provisional patent for their fire-retardant additive.

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About Zentek Ltd.

Zentek is an IP development and commercialization company focused on next-gen healthcare solutions in the areas of prevention, detection and treatment. Zentek is currently focused on commercializing ZenGUARD™, a patent-pending coating shown to have 99% antimicrobial activity, including against COVID-19, and the potential to use similar compounds as products against infectious diseases. The Company also has an exclusive agreement to be the global exclusive commercializing partner for a newly developed aptamer-based rapid pathogen detection technology.

Welcome to 2022! I’m cautiously optimistic that this will be the year we get to put Covid in the rear-view mirror and get on with life without always waiting for the next shoe to drop (or a new variant to take hold). I’m happy to put 2021 in the history books and anticipate the bright future that could be. In that vein, I’d like to look ahead to what I think could be an exciting story for 2022. Now don’t get me wrong, I’m not saying this is my top pick or suggesting it will go up. This is simply my perspective on a company that has a lot going on that could be rewarded by the market this year.

The path of least resistance, after this week’s market action, would be to pick a uranium stock. Between how this group performed in 2021 and even more impressively, the first couple of trading days of 2022, it would certainly make for an easy article to write. I’m also a fan of junior base and precious metal mining companies, especially ones with plenty of results pending, but not today. The future is technology, so my exciting stock for 2022 is a technology company that posted a respectable 35% return in 2021 but is well positioned for 2022. It also happened to evolve out of a junior mining exploration company so it’s the best of both worlds.

If you haven’t figured out what company I’m talking about yet, it’s Zentek Ltd. (TSXV: ZEN), formerly known as ZEN Graphene Solutions Ltd. There is so much going on at Zentek it’s hard to know where to start. The Company currently describes itself as an IP development and commercialization company focused on next-gen healthcare solutions in the areas of prevention, detection and treatment. Zentek is currently focused on commercializing ZENGuard™, a patent-pending coating shown to have 99% antimicrobial activity, including against COVID-19, and the potential to use similar compounds as products against infectious diseases. The Company also has an exclusive agreement to be the global commercializing partner for a newly developed aptamer-based rapid pathogen detection technology. But that’s just the tip of the iceberg in my opinion.

The near-term catalyst is all about the antimicrobial coating ZENGuard^TM, which was developed as a virucidal graphene-oxide (“GO”) based compound to be applied as a coating onto fabrics, which included personal protective equipment such as face masks in an effort to increase protection afforded by such products. In September 2021 the Company received Health Canada approval for the sale of ZENGuard™ coated masks and entered into a binding definitive license and supply agreement with Trebor Rx Corp. for the supply of ZENGuard™ to coat face masks and potentially other health care products. To date, Trebor has purchased, and the Company has delivered, quantities of ZENGuard™ coating sufficient for the production of 10,000,000 masks currently done via third parties. However, development is underway of the Company’s industrial scale facility to produce ZENGuard™ and to coat materials. The Company anticipates assembly and installation of the industrial scale production equipment to be completed during Q1 2022, at which point production is expected to commence while commissioning, optimization and production ramp-up occurs over the following two to three months. Once this industrial process is in operation, the Company expects the production capacity of ZENGuard™ to increase significantly.

Zentek recently closed a bought deal public offering and a non-brokered private placement for aggregate proceeds of C$33 million to assist in the build out of their facility as well as research and development, acceleration of business growth opportunities and working capital. Other growth opportunities include the development of a new carbon-based nanotechnology-enhanced icephobic coating to reduce ice accretion. The Company anticipates applications for aircraft, wind turbines, ocean vessels, and building structures to increase safety and efficiency outcomes in ice-forming weather conditions. In late November Zentek announced it had been awarded an R&D test contract through the Innovation Solutions Canada Testing Stream to test ZENGuard™ coated HVAC filters with interest from 3 different units within the National Research Council of Canada. Other innovations include the development of a stable diesel fuel additive, which increased the performance of diesel fuel by up to 10% in initial testing.

There is an awful lot going on at Zentek so I would encourage you to go check out their website to learn more because I’ve only scratched the surface of this stock to watch in 2022. Granted it’s not a small cap with a market cap of roughly $466 million after the closing of the latest capital raise earlier this week. Nevertheless, there are plenty of near-term catalysts with having their own production facility operational in the next few months and some pretty creative and unique opportunities being developed to propel this Company into the future.

Despite a recent setback in perception ZEN Graphene Solutions Ltd. (TSXV: ZEN) continues to power ahead with the stock up an impressive 30% in the last two weeks. Readers may recall a Health Canada announcement on April 2nd announcing a warning about face masks containing graphene or biomass graphene. This was a perfect springboard for ZEN Graphene to differentiate themselves from the competition and prove the superiority of their product. Health Canada warned, “There is a potential that wearers could inhale graphene particles from some masks, which may pose health risks.” Not surprisingly, ZEN’s stock price gapped down in trading that day on above average volume as investors threw the proverbial baby out with the bath water.

Investors (with a reasonable level of risk tolerance) who’ve done their homework on ZEN Graphene would have recognized this as a buying opportunity. Why? Not all graphene face masks are created equal. ZEN actually came out in support of the Health Canada measure, stating it is aligned and supportive of the steps taken to regulate the use of graphene and remove products that are unsafe for the public. Their confidence is based on the fact that Nucro-Technics (a world-renowned testing facility) has performed extensive testing for cytotoxicity, irritation and skin sensitization and shown that ZEN’s product is safe. As well, the company’s partner in the face masks, Trebor Rx Corp., has also completed considerable testing on the masks and has successfully passed Canadian requirements as a level 1 Medical Device for ASTM Level 1, 2 and recently, level 3, the highest level for surgical masks. Finally, additional information requested by Health Canada following the April 2 advisory has been submitted by ZEN and Trebor and it is expected the current review will be concluded in an expedited manner.

During this whole process, the company was still able to complete an oversubscribed private placement that started at $2 million and ultimately raised $4.3 million. It would appear at least some investors aren’t overly concerned about the Health Canada warning. So if readers are now reasonably confident that the Health Canada warning is in the rear view mirror and unlikely to negatively impact ZEN Graphene, then why would you as an investor want to dig deeper into being a ZEN Graphene shareholder?

Results and upside of course. On March 29^th InvestorIntel’s Matthew Bohlsen wrote about the successful testing of ZEN’s graphene compound against antimicrobial-resistant bacteria (including SARS-CoV-2) as well as the above noted cytotoxicity tests and Health Canada mask approval. He also addressed ZEN’s plans to expand current capacity to supply the demand from Trebor Rx from 4 million coated disposable masks per month to 32 million per month by June and further to 800 million masks per month by November. That is actual demand today that the company has realistic plans to achieve. If that isn’t upside enough, then all you have to do is look at the product pipeline which includes exam and single-use gloves, as well as the air filtration market.

I can bombard you with plenty of large numbers here that paint a picture of incredible upside but I’ll simply highlight a few key points and let you do your own homework. First off, all the products in the current pipeline are disposable, mostly single use. Second, Covid-19 has brought attention to the whole PPE market but for the products ZEN Graphene is looking to provide, demand won’t go away once the virus has been brought under control (whatever that looks like). Lastly, the large numbers are very large for global PPE like masks and gloves.

However, the proof is ultimately in the bottom line. The company has set out a plan to start generating revenue (of which it had none as at Dec 31, 2020) and reasonable, timely growth plans. They currently have over $5 million of cash and current burn rate of roughly $2 million per quarter depending on the incremental costs to build out mask production capacity. It’s hard to compete with the support and confidence shown by the team at ZEN Graphene during the Health Canada issues. If their product is really that good it should start to show up on the bottom line sooner than later.

A classic story of repurposing your tried and true Intellectual Property, allow me to introduce you to SINTX Technologies, Inc. (NASDAQ: SINT). SINTX is a leading manufacturer of silicon nitride which is a very hard, abrasion- and corrosion-resistant ceramic solid that’s inherently antibacterial and antiviral. These last two factors have caused the company to create quite a stir in this new world of COVID-19.

But first, let’s take a step back and look at how this company got started. Way back in 1996 the company was developing a ceramic hip replacement system. From there they launched multiple new silicon nitride spinal implants gaining regulatory clearances in Europe, Brazil, and Australia. Today their devices are used in over 35,000 human spine implantations.

From there they diversified their product line into more industrial applications such that they are now involved in aerospace, bearings, and drilling. In October 2020 they received the AS9100D certification for the Aerospace Quality Management System, meaning that SINTX equipment now meets the stringent standards of the aerospace industry thus achieving a critical step in entering the aviation, space, and defense market sectors. Of note, they have a 30,000 sq. ft., state-of-the-art manufacturing facility (and headquarters) in Salt Lake City which is FDA registered and ISO certified.

When it comes to Silicon nitride this team and their R&D is second to none. They have over 130 peer-reviewed scientific publications, more than 85 technical and scientific presentations and 12 Patents issued with another 56 Patent applications. So when COVID-19 came along they were able to improvise and adapt to develop yet another product line to add to the mix. In October 2020 (apparently a good month for the company) the SINTX R&D team bonded silicon nitride particles consistently and evenly into the fibers of a nonwoven fabric layer, in an effort to manufacture a “catch and kill” face mask that will inactivate respiratory viruses. That’s a bit of a mouthful but essentially they found that their silicon nitride inactivated the SARS-CoV-2 virus upon contact.

And that brings us to yesterday when the company press released confirmation of results on tests done at the University of Rochester, New York, which show that fabrics containing silicon nitride had comparable efficacy against inactivation of the SARS-CoV-2 virus to what their R&D team initially discovered. This opens up a whole new, and potentially highly profitable, business to SINTX. In addition to the “catch and kill” face mask, the Company expects the antiviral fabrics could be used in many applications, such as surgical gowns and drapes, automotive and HVAC filters, wound dressings, clothing, and more. SINTX believes that products made of its fabrics will inactivate trapped pathogens and reduce the risk of disease transmission. Effective HVAC filters would be a huge step in getting people back into offices and back on to cruise liners and into airplanes.

If you think all this is pretty interesting stuff, then you’ll really like the fact that this company has no debt, over US$20 million in cash and ONLY 26.1 million shares outstanding on a fully diluted basis. So despite their 50+% rally in this latest news, the market cap of this intriguing company is still under US$50 million. Granted they aren’t profitable yet, and COVID-19 negatively impacted their spinal implant business. Nevertheless, as they found one door closing it definitely opened up a new door for SINTX to show off their innovative spirit.

Using nanotechnology to quickly identify pathogens

Imagine if taking a coronavirus test was as simple as an alcohol breathalyzer, or a pregnancy test, and the results just as fast. One company has developed a test that uses molecular imprinted polymers with the possibility of detecting almost any pathogen, and is now using their technology to develop a way to detect for COVID-19 as easily as using a saliva test or a swab test.

Sixth Wave Innovations (CSE: SIXW | OTCQB: ATURF | FSE: AHUH) is a development stage nanotechnology company with patented technologies that focus on the extraction and detection of target substances at the molecular level using highly specialized ‘molecular imprinted polymers’ (MIPs). The target substances can be anything, such as pathogens (viruses & bacteria), gold, or anything made of molecules (that’s every substance).

Sixth Wave has technology to make a ‘polymer imprint’ for molecules including viruses. Sixth Wave is working to develop a molecular imprint for the coronavirus so they can capture the virus in their polymer and then apply various techniques to detect the virus such as colormetrics or electronics.

The company is working toward incorporating the technology into a mask so you could wear a mask that both protects and detects for COVID-19. Another concept is to have the MIP inside a coated barcode strip which you would then scan with your smartphone to see if you have been infected or not. (See: Sixth Wave working on a virus breath test.)

President, CEO and Founder Dr. Jonathan Gluckman explained that a “virus has a size and shape and we create an imprint in our polymer for that exact virus. Then we will detect that directly based on our chemistry.” He continued that Sixth Wave is “working to integrate this into masks and breathalyzers and then we can just utilize the breath, as we all know that’s the main transmission method. If you think about putting a mask on, not only will that mask provide protection, it can also, right there, be the test for COVID-19.”

Sixth Wave Innovations can detect and extract anything at the molecular level – Target markets include COVID-19 testing, gold extraction, and cannabis purification

Source

Sixth Wave Innovations technology can be used for other applications

Gold extraction

IXOS^® is a line of extraction polymers for the gold mining industry 100% developed and owned by Sixth Wave and patented/patent pending in 40+ countries worldwide. CEO Gluckman says the technology can save gold mining companies about US$100/oz on their processing costs based on pilot scale test results for multiple mines.

Sixth Wave Innovations IXOS^® can save gold miners up to US$100/oz in gold processing costs

Source: Corporate presentation

Cannabis Purification

Sixth Wave is in the process of commercializing its Affinity^TM cannabinoid purification system. The Affinity™ Technology for the medical and recreational cannabis industry is 100% developed and owned by Sixth Wave with a patent pending. Affinity^TM products are now rolling out and starting to generate revenue for Sixth Wave, including an initial 300 Affinity units.

Other applications

Sixth Wave’s Molecular Imprinted Polymers (MIPs) have also been applied in industries including security (SAFE-T explosives detective wipes), mining (gold & silver extraction, also removal of mercury), and other pathogen detection. The potential list of applications is enormous.

Sixth Wave Innovations planned revenue streams

Source: Corporate presentation

Closing remarks

History has repeatedly shown how mankind makes incredible innovative technology during incredible times. Here we are facing one of this century’s greatest pandemics and scientists globally are racing to develop better diagnostic tests, treatments and vaccines.

In the case of Sixth Wave Innovations it is fast-tracking the development of an innovative technology to detect and extract polymer molecules. They are now focused on adapting their technology to make a polymer imprint of the coronavirus that can, if successful, make COVID-19 detection as simple and fast as a breath test, whether on a test strip or even on a dual-purpose face mask. Imagine wearing a face mask that can also detect COVID-19. Sixth Wave’s COVID-19 detection technology targeted for early 2021, and if successful it will be a massive win-win for the public and also for Sixth Wave Innovations.

Meanwhile, Sixth Wave will be advancing their near term revenues from Affinity^TM, and later hopefully from IXOS^®. The current market cap of Sixth Wave Innovations is only C$21m thereby presenting a tremendous early stage speculative opportunity for investors.