AGORACOM Small-cap Investor Relations Blog

• As of today, and for the foreseeable future, graphite is the only viable material for the anode in this type of battery. 
• Nearly all applications of Li-ion batteries use coated spherical graphite as the anode material.

Graphite is the material with the largest share in weight in Li-ion batteries amounting to up to 70% of the total battery weight, totalling between 5kg (hybrid electric vehicles) to 100kg (full electric vehicles) per vehicle.

Nevertheless, as the main appeal for electric vehicles versus traditional internal combustion engine (ICE) vehicles is their low environmental impact, the very fact that this key material’s supply chain generates negative environmental impact, is a roadblock for unlocking repressed demand. Therefore, the battery grade graphite that Gratomic expects to offer to the market with neglectable environmental footprint will be the perfect solution to allow the EV manufacturers to overcome this challenge.

Gratomic has already initiated contacts with battery manufacturers in different countries, in order to tailor the development of the uncoated spherical graphite according to each individual requirement.

The many upsides for Gratomic in this arrangement include (but are not limited to):

1.Timing!

• TDN is currently up-listing to a prestigious Crypto trading platform in the USA! This is a great benefit to Gratomic because, as digital currencies gain strength, so too will Gratomic. This agreement has been negotiated from a position of strength as our agreement exists at an equivalent of $0.30 USD and TDN.

2.TDN is currently valued at an approximated $1.00 USD

• as its recent contract with Webtoons has been negotiated at this price.

3.TODAQ is partnered with various notable and established companies

• Hyundai, Visa, US Military,and many others, validating its solid foundation and future potential.

4.Todaq has also established long term relationships with the Saudi Arabian Government with their E-Waste Management systems. This contact is based on an $0.85 USD value.

5.Gratomic Inc. is also set to become the first companyto ever trade graphite as a commodity on a metals exchange!

6.Gratomic is following in the footsteps of BHP & Maersk,

• Rolled out their own crypto networks to achieve the same end goal. A good breakdown to understanding the value of the TDN contract is as follows:
  • Gratomic receives 145 million TDNat $0.30 USD, while TDN is currently transacting at $1.00 USD,
  • addionally, this contract only represents 5% of Aukams Processing Capacity

Stay tuned for a more in-depth overview from Gratomic’s President and CEO, Mr. Arno Brand.

• New agreement between the Company and TODAQ to provide battery grade graphite SG16 for the EV Battery Market
• TODAQ is proposed to receive an aggregate of graphite valued at US$25,000,000 from Gratomic’s Aukam Graphite Project in Namibia over a 36-month period in exchange for a non-cash digital asset created by TODAQ as a medium for exchange and store of value known as a TODA note

Gratomic Inc. (“Gratomic” or the “Company”) (TSXV:GRAT)(FRANKFURT:CB82)(WKN:A143MR)(OTCQB:CBULF) wishes to announce that it has upgraded its pre purchase agreement with technology company, TODAQ Star Program Phase 1 Corp.(“TODAQ“), a subsidiary of TODAQ Holdings Inc., pursuant to the terms of a new agreement dated January 7, 2020 between the Company and TODAQ (the “Supply Agreement“) to provide battery grade graphite SG16 for the EV Battery Market. TODAQ is proposed to receive an aggregate of graphite valued at US$25,000,000 from Gratomic’s Aukam Graphite Project in Namibia over a 36-month period in exchange for a non-cash digital asset created by TODAQ as a medium for exchange and store of value known as a TODA note (“TDN“). The Supply Agreement fulfillment has been negotiated at an exchange rate of USD$0.30 per TDN note.

The Supply Agreement contemplates that Gratomic will deliver, to TODAQ, 5,000 tonnes of SG16 product valued at USD$25 million under the terms of the agreement, over a 36-month period. TODAQ will put in an initial order of 1,800 tonnes, valued at USD $9 million, in exchange for 30,000,000 TDN, over the first 90-day period of the contract. The original agreement with TODAQ announced in the Press Release dated October 17, 2019, and referred to in the Press Release dated May 25, 2020, provided that the first 1800 tonnes of product would be purchased on the basis of an exchange rate of USD$0.10 per TDN with the balance being purchased at the market rate for TDN.

The Supply Agreement now fixes the value of the TDN notes at USD$0.30 for the purchase of the entire 5000 tonnes providing a fixed value and certainty for the Company. The first delivery date has not yet been established and will depend upon when the Company completes the construction of its processing plant at the Aukam Project in Namibia (see Press Release dated December 31, 2020 for an update on the status of the processing facility). When the Company is ready to deliver the SG16 product to TODAQ, it will inform TODAQ. TODAQ will then submit a purchase order for an initial 600 tonnes of product valued at $3 million and TODAQ will issue 10 million TDN to the Company. The Company will have 90 days thereafter to deliver the product to an on-site warehouse at the Aukam Property under the control of TODAQ which will constitute good delivery for the product. The Company intends to hold onto any TDN received for a minimum six months after which it will start liquidating the TDN into cash. See “Risk Factors” below.

As part of the Supply Agreement, both TODAQ and Gratomic will also be establishing a jointly owned entity, Q Corp, to hold an initial reserve of 60 million TDN to be used to build a treasury of commodities including graphite. As well, Q Corp will be provided with digital supply chain, custody, wallet and trading solutions by TODAQ USA, the digital solution provider of TODAQ, so Gratomic customers and graphite owners can own verifiably authentic and clean graphite which can be traded peer-to-peer and brought to exchange markets. Q Corp offers the option to Gratomic to trade excess production coming from its Aukam Processing facility to Q Corp.

READ MORE: https://agoracom.com/ir/Gratomic/forums/discussion/topics/752818-gratomic-upgrades-pre-purchase-agreement-with-crypto-currency-company-to-battery-grade-graphite-for-the-ev-market/messages/2297242#message