ZEN AGM QUESTIONS
Below are some questions for ZEN that have been drafted together with some other ZEN shareholders. They are being posted here for 3 days for review and refinement by anyone who wishes to contribute before being sent to ZEN in advance of the AGM. Hopefully answers can be provided during the AGM. No ownership of these question is claimed by anyone, and anybody is free to use/ask any of these questions during the AGM.
1. In September 2018 the company announced Quantum Dots as part of its product development line and last year we heard much emphasis on Graphene Quantum Dots. In September 2019 the company stated: “In the last few weeks, the research team at the University of British Columbia-Okanagan (UBC-O) has started producing Graphene Quantum Dots (GQDs) with the eventual goal of scaling up the process and producing 10 grams of GQDs per day. These products will be used both for R&D and for retail sale.” What happened to Graphene Quantum Dots? How many has UBC produced? What was the decision-making process that led to the focus on Graphene Quantum Dots? Does management have the necessary business strategy and execution expertise to identify and focus on a particular business avenue for ZEN and bring it to fruition? What does management now as see as the best avenue for commercial focus and what is the timeline?
2. Since the ZEN Forward takeover in 2018, the company has hired several staff in the area of sales, research, and government relations. How was it determined that these newly created positions were necessary and what are the responsibilities of these roles? Was there formal recruitment process to identify the most qualified available candidates? If not, on what basis were these staff hired? What are their qualifications and how can shareholders be assured these staff are fully effective in serving the company and working in the best interests of shareholders? What is the monthly burn rate for the company today compared to previous management?
3. In March of 2019, the company announced that it had extracted more than 110 tonnes of Albany graphite material from a bulk sampling program that was intended to result in a 990 tonnes of sample material. These 110 tonnes could generate substantial revenues once processed into a grapheme product, and are therefore an important company asset. Can the company provide a full and complete update on the status this 110 tonnes of Albany graphite material? Has any of this 110 tonnes been processed and sold or donated? If not, why did management proceed to spend significant funds for its extraction more than a year ago if it was not needed? Shareholders need full disclosure on this asset.
4. What is the current status and throughput capacity of the Guelph facility? Does the company rent or have possession of the entire building pictured in the presentation? What has happened at the Guelph processing facility since it was opened? How much graphene product has been produced? How much of has been sold and at what price? How much has been donated for research purposes?
5. There is an impressive list of collaborators in the corporate presentation including 7 prominent Canadian universities. Can the Head of Research provide an update on the status of each of the university and institutional research programs on ZEN’s graphene? How many are currently active and how frequent is the interaction with researchers at these universities? What are they currently working on? What are ZEN’s daily research related activities?
6. In April 2019, the company reported that it was “pleased to announce that it has signed a Memorandum of Understanding (“MOU”) with The University of Manchester (“Manchester”) in the UK. The purpose of the MOU is to explore opportunities of collaboration in the areas of development and commercialization of graphene and other 2D materials and accelerate the adoption of these materials into commercially viable markets.” The University of Manchester is not listed as collaborator in the latest presentation and no further mention of activities regarding this collaboration is mentioned in any subsequent news releases. What is the status of this relationship with University of Manchester that was supposed to explore and accelerate the commercialization of graphene?
7. On May 2019 the company announced it had “been awarded a $1,000,000 grant that will accelerate ZEN’s graphene-enhanced concrete research and development project. The grant will potentially help the Company achieve its goal to provide innovative cement-based composite products to the Ontario market by possibly early 2020. The grantor will reimburse 50% up to a maximum of $1,000,000 spent by ZEN on relevant expenses directly related to graphite purification, graphene production research, concrete additive research and large-scale graphene-enhanced concrete testing.” In August 2019 the company further announced that it had “received a $290,192.72 reimbursement payment for the eligible expenses during the quarter ended June 30th 2019. This payment is the first installment of the reimbursement grant for graphene-infused concrete applications research that was awarded to ZEN on May 8, 2019. No further updates with regards to reimbursements under this $1M grant appear in the company’s news releases. Who has been managing research under this $1M grant and what is the status of this research?
8. Is there any institutional investment in ZEN? If not, why not? How many presentations have been made to Bay St and/or Wall St investment communities? If so, what has been the result and costs to ZEN?
9. What strategies is Hybrid Financial currently undertaking to heighten market and brand awareness for ZEN Graphene Solutions and to broaden the Company’s reach within the investment community? What benefit has there been for the company since it was retained for marketing services in July of this year?
10. On page 16 of the company’s MD&A dated November 15, 2019, it was stated that the Head of Sales resigned in October (2019). Given the lack of commercial sales of any of the company’s product, as well as the apparent of any off-take agreements, it would seem a full-time sales positions is warranted. Who has been leading ZEN’s day-to-day marketing and sales efforts since, and what steps have been taken to find a new Head of Sales?
11. Do the CEO, CFO, Chief Strategy Officer, Senior Government Relations and Account Manager, and Head of Research (6 positions) work for the company on a full-time basis? Do they have other jobs? How are they compensated?
12. What are ZEN’s board of directors voting procedures? How many and which of the company’s directors are required to vote to pass any corporate resolution or act, including on matters of executive compensation, legal matters, strategic planning and on any business decisions?
13. What did it cost the company to do the re-branding to ZEN Graphene Solutions and develop the web store? What has been the benefit to shareholders of this rebranding, and more importantly, how much revenue has the webstore generated?
14. What steps is the companying taking to ensure its graphene products will meet recognized international standards such as ISO? |
