Pegs , its about the new process the company said they were developing because value wasnt being accomplished in thier work with NDSU and thier patented process that wasnt obviously delivering value . You need to be able to scale HIGH QUALITY HIGH PURITY CHS in large quanities and it sure looks apparent that didnt happen with NDSUs patented process to scale CHS. If thier patented process to scale wasnt delivering high qualiy high purity CHS in large volume that doesnt have much value. CHS is a great chemical to use to dope and create new compounds and so forth to create new silicon precursors but if you cant scale it properly you dont have much value to work with from the git -go and if your chemical cant achieve superior application results for your customers from the scale up process at the chemical manufacturer then a new process has to be created from the way i understand it and that appears to be just what the company has accomplished or would they get 2.5 million dollars to move thier business plan forward. Refer to previous conversations the CEO had with shareholders from the May 3rd 2018 letter to shareholders and the Feb 25th update from the CEO:
From the May 3rd 2018 CEO update :As you know, our introduction to the opportunities inherent in CHS began with a licensee from
North Dakota State University (“NDSU”) of its CHS technology. Our goal with licensing CHS
technology was to secure a process for manufacturing CHS and then partner with our CHS
volume manufacturer Gelest (“Gelest”) to make CHS for Coretec to sell to users in the
applications described above. As application traction occurred, the goal was that Gelest would
serve as our volume CHS supplier.
Recently it became clear to us that our relationship with NDSU does not fit the Coretec business
strategy of effectively commercializing CHS. We are now developing other manufacturing
processes, ones which we believe can be utilized more quickly, not have any exclusivity liability
or infringement risk, and with potentially better results[/b].
[Feb 25th update From the CEO :We had to make a change in the source of our CHS and we severed our ties with NDSU because in many areas value was not being realized. We have surveyed the other options existing and are currently in detailed and confidential discussions with a major international supplier and potential distribution partner for our CHS. I wish to emphasize “our CHS” as we are focused on building unique Coretec CHS IP. We’re also working on funding, which is the lifeblood of early stage companies and there are two or possibly three options.....
Coretec’s new supplier of CHS is a major, highly respected chemical manufacturer. Terms of
that partnership will soon be announced, and Coretec is confident our new CHS suppler will
provide us with high quality, high purity CHS quickly, and we will attain superior application
results in our customer partnering efforts.
