Quantum Materials Corp. Update (OTCQB: QTMM) - China Government Guidance Fund Invests $21.8 million into GTG and Quantum Materials Asia (QMA)
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QMA Building Two Quantum Dot Production Lines in China Utilizing Quantum Materials Corp’s Proprietary Continuous-flow Quantum Dot Manufacturing Technology
Quantum Materials Corp made a major announcement today wherein they announced a $21.8 million investment from the China Government Guidance Fund into GUANGHUI TECHNOLOGY GROUP (GTG) and Quantum Materials Asia (Quantum Materials Asia is a joint venture between GTG and Quantum Materials Corp.)
It was reported in today's announcement that QMA will build two Quantum Dot production line and application development centers in the Beijing and Changde Special Economic Development Zones and both facilities will utilize Quantum Materials Corp’s proprietary high-volume continuous-flow quantum dot manufacturing technology to produce heavy metal-free quantum dots in consistent and scalable volumes. Placing these two quantum dot production facilities regionally allows QMA to customize QD characteristics and optimize manufacturing efficiencies and supply chain logistics to meet the needs of major display component manufacturers in the region. Construction on both facilities will start in the third quarter of 2017.
This is fantastic news for Quantum Materials Corp and its shareholders as this partnership will move the ball forward materially in QMC's mission to gain market share with their quantum dot materials in arguably the most dynamic zone for flat panel display manufacturing in the world. China already has a massive in-place manufacturing capacity for LCD/flat panel displays and 4 out of 5 of the planned Gen 10.5B fabs (these are the current largest class of LCD fabs in the flat panel display biz - designed for the largest sized displays) are being built in China at this time (BOE in Hefei, CSOT in Shenzen, Foxconn/Sharp in Guangzhou and HKC in Yunnan). We were also impressed with today's release by the background of the principals of GTG, and their deep connection to the flat panel industry via their early funding of one of China's largest flat panel manufacturing groups BOE. We recommend everyone to take a look at today's release, especially the paragraph that describes in detail the experience and background of the principals of this well connected group and partner of QMC in this rapidly expanding market space for quantum dot development.
In the release GTG CEO and President Mr. Xiao Liu stated: “We are pleased to report that we have secured the funds necessary to move forward with building both QMA production facilities. Upon completion we expect rapid growth of QMA as we bring production online to meet both current demand for quantum dots from display manufacturers as well as demand in emerging applications such as solar power generation.”
Quantum Materials Corp Chairman and CEO Stephen A. Squires further stated: “We applaud both the Chinese Government Guidance Fund and GTG for bringing forward this timely investment to secure the land and resources required to build out both application development and quantum dot production facilities. The Beijing and Changde Special Economic Development Zones are prime locations in which to work closely with regional manufacturers and also offer significant economic benefits to our growing presence in Asia.”
This announcement comes just a few weeks after another recent major milestone wherein the Company announced the demonstration of a heavy metal (cadmium) free, QD enhanced film product to interested parties/flat panel display representatives at this years' CES trade show in Las Vegas in January. We attended CES in January and got to see this new film product first hand - and as we reported in the 2017 CES Travel Digest this film product was impressive to say the very least in terms of overall brightness and white color in a side by side comparison with film from what we were told was the highest rated qd film in a commecially available LCD application at this time.
The growth of quantum dot materials/film into the flat panel display market is moving very rapidly now and is predicted to accelerate from here with estimates of the market reaching $13.7 billion annually by 2022 - representing a CAGR of 62.6% (Orbis Research). These are big numbers for sure, but based on our most recent visit to CES where we witnessed firsthand once again the wide color gamut performance gap that Samsung is enjoying over non qd enhanced flat panel displays, we fully understand not only the desire, but now the absolute necessity on the part of the remaining OEM's making flat panel displays to narrow that gap as quickly as possible, and just like we did when we first sat down with QMC founder and CEO Stephen Squires over two years ago to learn about these incredibly tiny semi-conductors with "light bending" capabilities - we still see qd technology as the most economic and market ready technology to get them there.
Link to today's full press release: http://finance.yahoo.com/news/gtg-qma-report-...00872.html
To learn more about QMC's heavy metal free quantum dots, be sure to visit the Company's primary VAR groups' website - Uniglobe Kisco at: http://uniglobekisco.com/products/quantum-dots as well as the Company's website at: www.qmcdots.com
We expect the next few months to be extremely active for Quantum Materials Corp. as they move forward to commercialize their cadmium free quantum dot film with both technical and VAR partners and we will be sure to keep you up to speed on their progress.
Regards,
Clay Chase
SD Torrey Hills Capital
858 456-7300
cc@sdthc.com
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