Quantum Materials Corp. Update (OTCQB: QTMM) - Major Inflection Point Reached - Company Shipping High Performance Cadmium-Free Quantum Dot Samples to Display Film Manufacturers + Third Party Validation of Performance Specs by President of Uniglobe Kisco
November 30, 2016
Quantum Materials Corp. had a major announcement today wherein they announced the Company is now shipping high performance red and green cadmium-free quantum dot sample sets to display film manufacturers. Just as importantly in this release QMC announced third party validation of the Company's cadmium free quantum dot materials from one of the market's leading suppliers of opto-electronic components - Uniglobe Kisco. In the release Uniglobe President Kenji Shimada stated: “It’s exciting to be partnering with Quantum Materials in this revolutionary display material technology. Our own rigorous testing has shown product specifications for their cadmium-free quantum dots to be at or beyond what is currently available in the market today, and their innovative high-volume production technology gives us confidence in the company’s ability to fulfill demand as the market for quantum dot-enabled films for displays grows.”
In the release QMC CEO Sri Peruvemba stated: “Demand for quantum dot-enabled TVs and displays is growing rapidly. Our materials, combined with the efficiency and scalability of our continuous flow production technology, makes us uniquely situated to meet the demand regardless of how fast it grows.” and “I believe we have exceptional materials, unequalled manufacturing technology, a great partner in Uniglobe Kisco, Inc., and also the financing to bring our advanced materials to market. Our plan remains to begin shipping commercial quantities of quantum dots in the first part of 2017.”
If you have been following the integration of quantum dots into the flat panel display industry - then you know that today's PR is a BIG DEAL and represents a MAJOR INFLECTION POINT for QMC as they look to enter this rapidly growing market space. Industry market forecasters have estimated that by 2020 we could see upwards of 18 million panels come off the assembly line with vastly improved color rendering capabilities driven by quantum dot technology. We have witnessed firsthand the dramatic difference of TV's with QD's vs. TV's without - and based on the significant quality and "viewer experience" gap between the two, we actually think the uptake of QD driven sets could be even more rapid than these estimates -especially when you consider that once consumers are aware of the availability of sets that incorporate quantum dots, they will bypass sets without (just as they did CRT sets when FPD tech came of age and opted for higher resolution sets like 1080 over 760 and now 4K is the standard over 1080) and non-QD sets will quickly go "the way of the dinosaur". OEM's are seeing this dynamic take place in real time with Samsung's quantum dot driven SUHD line and are moving quickly to develop QD driven sets of their own to stay in the game and maintain market share. With QMC's now openly stated ability to produce red and green cadmium free quantum dots with product specs that in the words of Uniglobe Kisco Inc's President are "at or beyond what is currently in the market today" (which would surely include Samsung's market leading SUHD panels), this announcement puts QMC on a very short list of quantum dot suppliers that are positioning to supply electronics OEM's looking to produce high performance LCD flat panel displays that incorporate cadmium-free quantum dot technology (many of the largest OEM's are now following Samsung's lead and are only looking to source cadmium-free solutions to stay in front of ROHS regulations prohibiting and/or highly restricting the use of cadmium in consumer electronics).
With samples of these high performance cadmium free quantum dots now being sent to display film manufacturers the obvious next step for QMC will be to work with one (or more) of these groups to incorporate their high performance spec materials into a quantum dot film product that OEM display makers will be able to purchase and drop into their screen "stack" to bump up the color gamut capability of their panels to a high percentage of the newly established Rec 2020 color standard (a recent industry report pegged the current SUHD models in the low to mid 70 percent range of Rec 2020 depending on the model number). Once this step is completed the revenue opportunity for QMC could be literally breathtaking when you consider that millions of panels will require millions of grams of these materials (what we don't know at the moment is what a gram of high performance QD's will sell for. We have seen several industry analyst estimates on this number in the $75 to $125/per gram range give or take depending on quantity and quality, but these figures are purely estimates and we will just have to wait and see where this number shakes out).
QMC has stated in both press releases and public filings that they currently have capacity in place at their San Marcos, TX headquarters to manufacture 2+ metric tons of these materials (1 metric ton is equal to 1,000,000 grams) on an annual basis and can expand that capacity quickly with a relatively low capex outlay, allowing them to grow quickly and cost effectively to supply an OEM partner with sufficient quantities of materials to match demand - which to date has been one of the limiting factors in the uptake of these materials. In today's release QMC Sri Peruvemba states that the Company plans to begin shipping commercial quantities of quantum dots in the first part of 2017 - therefore we see plenty of material milestone developments to look forward to in QMC's growth strategy in the new year.
For everyone already in QMC, today's news represents a major step forwards in the march towards the Company's stated goal of being a major supplier of these highly efficient, light bending materials that are now disrupting the flat panel display market - and hold the very real potential of disrupting a number of additional large markets in the near future including general lighting, PV solar cells and next generation batteries - and eventually even computers with the advent of quantum computing.
For those that have been watching from the sidelines - today's release could be a strong catalyst/invitation for participating in what could very well be the biggest "materials revolution" since the silicon chip.
To get a good sense of where QMC is heading from here, we recommend a recent interview of QMC CEO Sri Peruvemba, link here: http://seekingalpha.com/article/4019538-quantum-materials-corp-quantum-dots-player-ceo-interview