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Letter to QMC Shareholders/Published October 2016

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Solar_Express   Saturday, 10/15/16 01:11:51 AM
Re: None
Post # of 61760 
Letter to QMC Shareholders/Published October 2016

Dear Quantum Materials Shareholder,
Whether you invested in QMC years ago or just yesterday, I wish to thank you for supporting the company. It’s been
90 days since I was given the opportunity to lead QMC, and it’s been a hectic period during which the company has
made much progress. I have spent time getting to know our team, understanding the technology and evaluating the
challenges to bringing our products to market. I’ve spoken with customers and partners as well as many of you and
my confidence in the future of our company is greater today than it was when I started. Let me explain why.
Having spent most of my career in the electronic display industry, I know that the market opportunity for quantum
dots in TVs, monitors, laptops and tablets is quite substantial. That is what originally attracted me to QMC. In the
past few weeks, I have learned from our customers and partners that this window of opportunity is wide open since
existing solutions in the market are either inadequate, expensive, and/or made with heavy metals such as cadmium,
which they don’t wish to use anymore.
So, why haven’t we captured this opportunity yet? That’s because our products had not yet fully met all our, or our
customers, expectations for performance, quantum yield or other key parameters. We have achieved each of these
parameters individually but not all of them at the same time. That being said, in the past few weeks we have made
samples that hold great promise - and we have done this without using cadmium in our chemistry! In addition, we
can make products via our manufacturing process, which is substantially lower in cost and drives higher throughput
than traditional production methodologies. Our goal is to produce a better product than our competition at a lower
cost point. We believe we are on a direct path to achieving this goal.
What we have been attempting to do hasn’t been done before; we are inventing an entirely new product with a new,
scalable manufacturing process. Locking in a date on invention has been our challenge over the past year or so.
Our aim is to produce products that will delight our customers, both in product performance and at a cost point that
will allow mass deployment. We have more than one initiative being deployed to solve the problems and each of
these is delivering results that are getting us closer to the goal. Until we achieve this goal, we will not rest. Our team
is dedicated to this cause, and I couldn’t be more proud of their commitment, innovation and hard work.
I cannot tell you the exact date our Display quantum dots products will be qualified and in mass production with our
customers, nor can I precisely say how large our market share will be in the next year. But, I can say this: we are
working hard and achieving great results and we will continue to persevere and succeed. We have invested carefully
in R&D and Operations and have remained frugal with your investment in every area. Your continued support is the
fuel that drives us to success. Once again, thank you for being here and believing in our potential and us.
Sri Peruvemba
President and CEO


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