Geology, geophysics, and exploration on Treaty Creek indicate potential for world class deposits.
The Clean Energy Revolution is all about sustainability from cradle to grave.Â
Both investors and consumers in this space want the manufacturing process for clean-energy products to have as small an environmental footprint as possible. Otherwise the movement away from fossil fuels will not lead us to a truly low-carbon economy.
Renewable forms of energy such as solar are key to that transition. In 2017, new renewable-energy-generating capacity surpassed that of net new fossil fuel capacity. “We are at a turning point … from fossil fuels to the renewable world,†Erik Solheim, head of UN Environment, told Reuters. “The markets are there and renewables can take on coal, they can take on oil and gas.â€
This INNspired Article is brought to you by:
HPQ Silicon (TSXV:HPQ) is a technology and resource company working towards becoming a vertically integrated producer of high-purity, solar-grade silicon metal.Send me an Investor Kit
Solar power is the fastest-growing source of that new renewable energy. According to a report published by research firm Zion Market Research, the global solar panel market accounted for US$30.8 billion in 2016 and is expected to reach US$57.3 billion by 2022, growing at a CAGR of 10.9 percent.
The International Energy Agency (IEA) believes solar will dominate future growth in the renewable energy sector, with global capacity in five years’ time expected to be greater than the current combined total power capacity of India and Japan, reports the Guardian. “What we are witnessing is the birth of a new era in solar photovoltaics (PV). We expect that solar PV capacity growth will be higher than any other renewable technology up to 2022,†said Dr. Fatih Birol, IEA executive director.
That increased solar capacity will require more solar panels, and that means more silicon, the material responsible for converting solar energy into electricity.
Silicon, an excellent semiconductor, is essential in the fabrication of solar panels. Unlike other metals, its conductivity improves as temperatures increase — making it ideally suited for solar-energy generation.
Yes, solar panels do not emit greenhouse gases when they are generating electricity; however, the conventional process for producing solar-grade silicon, or polysilicon, uses harsh chemicals and requires a lot of energy.
According to a 2014 National Geographic report, the entire process results in the emission of greenhouse gases and the production of toxic chemicals. “The dirty little secret about solar panels is that while solar energy as a concept is green because you can generate electricity without generating pollution, you create a lot of pollution during the manufacturing of those solar cells,†Bernard Tourillon, CEO of HPQ Silicon (TSXV:HPQ), told INN. HPQ Silicon owns a portfolio of high-grade quartz properties in Quebec, and with PyroGenesis Canada (TSXV:PYR) is developing a new carbothermic process that has the capability to convert quartz into solar-grade silicon metal in just one step.
Although silicon is one of the most abundant elements on earth, it doesn’t occur freely but rather is found in compound form with oxygen as silicon dioxide (SiO2) or silica. Quartz is the most common form of silica. The conventional process for producing pure silicon from quartz and further refining it for use in solar panels requires a lot of energy and the use of caustic chemicals — leading to the emission of greenhouse gases and the production of the very toxic chemical silicon tetrachloride.
“Traditionally this is a very high-CAPEX smelter process that requires large-size plants and is extremely pollutive because to transform quartz into silicon metal by default you create carbon monoxide,†added Tourillon.
Silicon has a melting point of 1,414° Celsius, nearly that of iron. Freeing silicon from SiO2 requires passing quartz through a carbothermic process (basically adding carbon through extremely high heat) in giant electric furnaces, which in turn requires a lot of energy, notes Fengqi You, assistant professor of engineering at Northwestern University and a co-author of a study on the subject conducted in partnership with Argonne National Laboratory.
Further increasing the carbon footprint of solar-panel manufacturing, coal is often the source of energy used to heat the furnaces, especially in China where the majority of the world’s polysilicon and solar panels are produced. Hence, as the Economist points out, “when a new solar panel is put to work it starts with a ‘carbon debt’ that, from a greenhouse-gas-saving point of view, has to be paid back before that panel becomes part of the solution, rather than part of the problem.â€
Nearly all of the silicon used in today’s solar panels comes from the refining of metallurgical-grade silicon using a chemical purification method known as the Siemens process, which involves the use of caustic chemicals, including sodium hydroxide and hydrofluoric acid. This process produces waste in the form of highly toxic silicon tetrachloride.
While most manufacturers recycle this waste to produce more silicon, the reprocessing equipment can carry a hefty price tag — in the range of tens of millions of dollars — leading some companies to dump the waste. Once silicon tetrachloride comes into contact with water it releases hydrochloric acid, which acidifies the surrounding soil and emits toxic fumes.
In an effort to crack down on illegal dumping of toxic waste produced by polysilicon manufacturers, environmental regulators in China shut down operations at several offending factories in 2017. The move sent prices of polysilicon soaring on shortages and spiked production costs for solar panel manufacturers.
Clearly, without sustainably produced silicon, solar panels are not a genuine clean-energy alternative to fossil fuels.
A potential solution to this challenge may come in the form of the fourth state of matter: plasma.
Plasma is a charged gas capable of strong, electrostatic interactions, making it a great conductor of electricity. Plasma’s semiconductive property is why in 2015, HPQ Silicon approached PyroGenesis, one of the largest concentrations of plasma expertise in the world, and inquired about the possibility of using its plasma-based knowhow to transform quartz into solar-grade silicon metal.
PyroGenesis has successfully developed plasma-based systems for the US Navy, including technology that destroys chemicals-based weapons, and has invented a plasma-based process for producing power for 3D printing that is now used internationally.
The resulting cooperation between HPQ Silicon and PyroGenesis led to the development of the PUREVAP™ Quartz Reduction Reactors process, a new carbothermic process that has the capability to convert quartz into solar-grade silicon metal.
In less than 18 months, the PUREVAP™ QRR process has demonstrated the possibility of converting quartz into solar-grade silicon metal at commercial scale in one step.
“Plasma is a very exciting area of technology. Our PUREVAP™ metallurgical process harnesses the advantages of plasma to commercially produce solar-grade silicon directly from quartz,†Peter Pascali, president and CEO of PyroGenesis, told INN. “If you can conduct that transformation in one step using a clean technology like plasma then without a doubt there are significant environmental benefits from that.â€
A third-party revenue analysis of the process, conducted by private France-based Apollon Solar, found that at the commercial scale, the PUREVAP™ process could lead to the production of solar-grade silicon at a significantly lower cost compared to conventional processes.
PyroGenesis’ recent GEN2 testing results have validated the commercial scalability of the PUREVAP™ process. “The results we have achieved recently with the GEN2 PUREVAP™ give us increased confidence and assurance that at pilot scale, we will be able to reach significant higher production yields of the high-purity silicon metal that we are targeting,†said Pierre Carabin, PyroGenesis’ chief technology officer.
HPQ Silicon owns the PUREVAP™ technology as it relates to the transformation of quartz to silicon through a binding agreement with PyroGenesis. HPQ Silicon provides the strategic direction, marketing and funding for the project for a 90-percent interest.
HPQ Silicon, PyroGenesis and Apollon Solar are working together to conduct the GEN3 Pilot Plant phase, now in the planning stages, to further validate the commercial scalability of the PUREVAP™ process.
There are of course other factors that contribute to the carbon footprint of solar energy outside of how silicon is produced; for example, in the fabrication of the solar panels themselves. But solving this one challenge may still be a huge step forward for the solar industry and could bring the world closer to a more energy-efficient and environmentally sustainable future.
This INNspired article is sponsored by HPQ Silicon (TSXV:HPQ). This article was written according to INN editorial standards to educate investors.
Source: https://investingnews.com/innspired/environmental-impacts-of-solar-panels-manufacturing-threaten-the-clean-energy-revolution/?mqsc=E3953446
2017 was a year in which PyroGenesis posted:
MONTREAL, April 30, 2018 – PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX-V:PYR) (OTCQB:PYRNF), a high-tech company (the “Company†or “PyroGenesisâ€) that designs, develops, manufactures and commercializes plasma waste-to-energy systems and plasma torch products, is pleased to announce today its financial and operational results for the fourth quarter and the fiscal year ended December 31, 2017.
“2017 was a year in which all key indicators of operational performance posted significant gains, year over year, and once again the Company is well positioned for the coming year,†said P. Peter Pascali, President and CEO of PyroGenesis. “2016 was a pivotal year for PyroGenesis as the Company decided to re-enter the market for metal powder production (this time for additive manufacturing), and leverage off of both its extensive Plasma expertise and the fact that it invented Plasma Atomization for this space. 2017 became the year in which the Company went from relative obscurity within the additive manufacturing industry to being nominated for “Materials Company of the Year†at the 3D Printing Industry Awards 2018. 2017 also saw the commercial acceptance of its patented DROSRITE™ System with the acceptance of its first commercial sale and a subsequent re-order by the same client.  As reviewed in a press release dated February 1st, 2018, we now have visibility on an additional 6-10 DROSRITE™ systems to be delivered in 2018 and there is a high probability that the Company will be profitable in 2018 from the addition of DROSRITE™ system sales to our backlog. All this to say that 2017 seems to have set the stage for a profitable 2018.â€
Highlights
2017 was a year in which PyroGenesis posted:
Outlook
2017 was a year in which all key indicators of operational performance posted significant gains and positioned the Company for profitability in the future. Building upon the successes of 2016, which saw the establishment of healthy gross margins, in excess of 40% continue and improve throughout 2017, as the Company put in place the infrastructure and personnel to ensure that these margins, not only continue into the foreseeable future, but improve once powder production is in full commercialization.
The following is a non-exhaustive review of PyroGenesis’ main commercial activities:
A)Â Powder Production:
2017 became the year in which the Company went from relative obscurity within the additive manufacturing industry, to being nominated “Materials Company of the Year†at the 3D Printing Industry Awards 2018.
Not only, during this period, did the Company successfully assemble and commission its first metal powder production system, but also (i) successfully delivered orders for Titanium and Inconel powders, all while still in the ramp up phase, (ii) generated new, game changing, IP which provides for more control over particle size distribution, with little to no waste, while increasing powder production even further, and (iii) entered into several NDA’s with significant players in the industry (end users, printer manufacturers, and distributors) all with a view of providing sample orders, repeat orders, long term orders, contract R&D, and/or strategic partnerships for long term powder supply contracts, some with a view to a possible acquisition. Given the level of activity, and the prospect of significant orders in the near term, management decided to order the long lead items for two powder production systems, both of which should be fully operational by the end of July 2018. These new powder production units will incorporate some of the cutting-edge IP that has recently been developed and/or is in development. We expect these units will cost significantly less to manufacture, generate higher production rates, and provide greater control over particle size distributions.
Of note, although the Company’s strategic plan has always been based on its existing IP, know-how, and system (the economics of which remain true to this day), management has decided to leverage off of its significant advantage in plasma technology and dedicate certain limited assets to increasing its IP base with the goal of further significantly reducing capital and operating costs of the powder production system while at the same time improving production rates even further. PyroGenesis is confident that these goals once achieved will significantly impact our build out strategy for the better.
The Company expects that one of the next significant milestones is to be formally placed on a powder user’s approved supplier list. This requires significant time and money on the part of the user and would be the first formal step to a powder production contract. Although we cannot predict the time frame in which this might happen, we can confirm that we have not been rejected during any powder qualification process leading to this ultimate goal.
B)Â DROSRITE™:
As the Company positioned itself, during 2017, to become a significant powder producer to the Additive Manufacturing Industry, it also successfully positioned its DROSRITETM Furnace System to become a fully commercial product line in and of its own right.
2017 saw the commercial acceptance of PyroGenesis’ patented DROSRITE™ System with, not only an acceptance of its first commercial sale, but a subsequent re-order by the same client at a higher price.
During this time, a successful demonstration of the DROSRITE™ System in the Middle East has resulted in significant interest from that region while the Company’s demonstration unit is already fully booked in India, to September, with paid-for-demonstrations. This flurry of activity and interest for the DROSRITE™ System resulted in the Company hiring a full-time business development manager to market the DROSRITE™ System, and who’s role is exclusively to secure DROSRITE™ system sales. PyroGenesis is aggressively targeting both primary aluminum smelters in Asia and the Middle East where the market is estimated to be in excess of 1 million tonnes of dross1, as well as tertiary casting producers worldwide. These two markets alone represent a potential market for DROSRITE™ systems numbering in the hundreds of units.
1Â http://www.world-aluminium.org/statistics/primary-aluminium-production/
As of this writing, PyroGenesis
Plus,
Due to this high demand for on-site paid-for demonstrations, the Company is in the process of constructing a second DROSRITE™ demonstration system which is expected to be available for demonstrations in Q3 2018. There is a high probability that PyroGenesis will be profitable in 2018 from DROSRITE™ system sales when combined with existing backlog.
C)Â US Military:
Originally it was thought that just one new US Aircraft Carrier would be ordered in 2018, with an estimated value of approximately $6MM, but now it seems that the interest is for two, for an estimated value of between $10-12MM.
The chemical warfare destruction unit, that PyroGenesis developed for a consortium involving various groups within the US military, and was in the process of being tested, continues to have its schedule delayed to accommodate other unrelated testing needs by the group. This testing timeline is out of the Company’s control.
Revenues from military contracts in 2017 were over $4,300,000, mainly related to providing technical support, training services and sale of spare parts. Over the past three years, revenues from military contracts have typically represented more than $2,000,000 per year of PyroGenesis’ revenues. As the PAWDS technology becomes fully operational on US Navy ships, management expects the level of recurring revenues from the sale of parts and services to increase over the next 2 to 5 years.
D)Â HPQ:
On August 2, 2016, PyroGenesis announced that it had signed contracts totalling $8,260,000 with HPQ Silicon Resources Inc., formally Uragold Bay Resources Inc. (“HPQâ€) for the sale of IP and to provide a pilot system to produce silicon metal directly from quartz. Of particular note, if successful, PyroGenesis benefits from a 10% royalty on all revenues derived from the use of this system by HPQ, subject to annual minimums.
Management remains focused on reducing PyroGenesis’ dependency on long-cycle projects by developing a strategic portfolio of volume driven, high margin/low risk products that resolve specific problems within niche markets and doing so by introducing these plasma-based technologies to industries that have yet to consider such solutions.
Management is also actively targeting recurring revenue opportunities that will generate a growing, and profitable, regular cash flow to the Company.
PyroGenesis has one of the largest concentrations of plasma expertise in the world, with over 250 years of accumulated technical experience and supporting patents, combined with unique relationships with major Universities performing cutting edge plasma research and development, positions the Company well to execute its strategies.
Management’s focus will continue to be to generate an improved mix of short and long-term projects that will, in turn, facilitate operational and financial planning. Repeat orders for the same, or similar, products will further result in the standardization of manufacturing processes which will lead to improved gross margins.
All indications are that 2018 should be a profitable year for the Company given that business lines, other than non-additive manufacturing, continue to contribute significantly to Pyrogenesis’ revenues. Management expects that the Corporation’s non-additive manufacturing business lines will generate enough revenues, on their own in 2018, to make PyroGenesis profitable overall.
Financial Summary
Revenue
PyroGenesis recorded revenue of $7,192,861 in the year of 2017, representing an increase of 38% compared with $5,222,133 recorded in the year of 2016.
Revenues recorded in fiscal 2017 were generated primarily from:
Cost of Sales and Services and Gross Margin
Cost of sales and services before amortization of intangible assets was $4,065,894 in 2017, representing an increase of 33% compared with $3,051,356 in 2016.
In 2017 employee compensation, subcontracting costs, direct materials and manufacturing overhead increased to $4,436,508 (2016 – $3,277,813) as a result of increased volumes during the year. The cost of sales and services for 2017 and 2016 are in line with management’s expectations. The type of contracts being executed, and the nature of the project activity has a significant impact on both the overall level of cost of sales and services reported in a period, as well as the composition of the cost of sales and services, as the mix between labour, materials and subcontracts may be significantly different. The cost of sales and services for 2017 and 2016 are in line with management’s expectations
Investment tax credits recorded against cost of sales are primarily related to client funded projects that qualify for tax credits from the provincial government of Quebec. Qualifying tax credits increased to $367,342 in 2017, compared with $249,550 in 2016. This represents an increase of 47% year-over-year. The increase is primarily due to a higher amount of these costs being eligible for tax credits.
The gross margin before amortization of intangible assets for 2017 was $3,126,967 or 43.5% of revenue compare to a gross margin of $2,170,777 or 41.6% of revenue for 2016 before amortization of intangible assets and write-offs of inventories and costs and profits in excess of billings on uncompleted contracts. The inventory write-off in 2016 was comprised of the Transportable Waste to Energy system ($147,774) and the CFC destruction system ($846,241). The write-off of costs and profits in excess of billings on uncompleted contracts ($1,760,423) was related to the Company no longer expecting to recover the full amounts owed from a customer for a contract.
The amortization of intangible assets of $Nil in 2017 and $1,396,675 for 2016 relates to the licenses and know-how purchased in 2011 from a company under common control. Of note, this expense is a non-cash item and the underlying asset was fully amortized by December 31, 2016.
Selling, General and Administrative Expenses
Included within Selling, General and Administrative expenses (“SG&Aâ€) are costs associated with corporate administration, business development, project proposals, operations administration, investor relations and employee training.
SG&A expenses for 2017 excluding the costs associated with share-based compensation (a non-cash item in which options vest principally over a two-year period), were $4,394,837, representing an increase of 10% compared with $3,990,837 reported for 2016.
The increase in SG&A expenses in 2017 over the same period in 2016 is mainly attributable to the net effect of:
Separately, share based payments increased by 107% in 2017 over the same period in 2016 as a result of the vesting structure of the stock option plan including the stock options granted on November 3, 2017.
Net Comprehensive Loss
The net comprehensive loss for 2017 of $6,174,303 compared to a loss of $6,952,219, in 2016, represents a decrease of 11% year-over-year.
The decrease of $777,916 in the comprehensive loss in 2017 is primarily attributable to the factors described above, which have been summarized as follows:
EBITDA, Adjusted and Modified
The EBITDA loss in 2017 was $5,558,640 compared with an EBITDA loss of $4,935,997 for 2016, representing an increase of 13% year-over-year. The decrease in the EBITDA loss in 2017 compared with 2016 includes amounts written-off of $2,754,438 in 2016.
Adjusted EBITDA loss in 2017 was $1,583,984 compared with an Adjusted EBITDA loss of $1,815,534 for 2016. The decrease of $231,550 in the Adjusted EBITDA loss in 2017 is attributable to the decreased comprehensive loss of $777,916, a decrease of $15,468 in depreciation on property and equipment, a decrease of $1,396,675 in amortization of intangible assets, an increase in finance charges of $11,584, an increase in cost of other non-cash items, specifically share-based payments of $392,988, an increase in a settlement of a claim related to the long-term debt of $3,215,643 a decrease in write-off of inventories of $994,015 and a decrease in write-off of costs and profits in excess of billings on uncompleted contracts of $1,760,423.
The Modified EBITDA loss in 2017 was $1,445,784 compared with a Modified EBITDA loss of $1,846,234 for 2016, representing a decrease of 22%. The decrease in the Modified EBITDA loss in 2017 is attributable to the decrease as mentioned above in the Adjusted EBITDA and a decrease in change of fair value of investments of $168,900.
Liquidity and Capital Resources
The Company has incurred, in the last several years, operating losses and negative cash flows from operations, resulting in an accumulated deficit of $43,200,708 and a negative working capital of $9,403,370 as at December 31, 2017 (December 31, 2016 – $37,026,405 and $2,079,353 respectively). Furthermore, as at December 31, 2017, the Company’s current liabilities and expected level of expenses for the next twelve months exceed cash on hand of $622,846 (December 31, 2016 – $385,257). The Company has relied upon external financings to fund its operations in the past, primarily through the issuance of equity, debt, and convertible debentures, as well as from investment tax credits.
About PyroGenesis Canada Inc.
PyroGenesis Canada Inc. is the world leader in the design, development, manufacture and commercialization of advanced plasma processes. We provide engineering and manufacturing expertise, cutting-edge contract research, as well as turnkey process equipment packages to the defense, metallurgical, mining, advanced materials (including 3D printing), oil & gas, and environmental industries. With a team of experienced engineers, scientists and technicians working out of our Montreal office and our 3,800 m2 manufacturing facility, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. Our core competencies allow PyroGenesis to lead the way in providing innovative plasma torches, plasma waste processes, high-temperature metallurgical processes, and engineering services to the global marketplace. Our operations are ISO 9001:2008 certified, and have been since 1997. PyroGenesis is a publicly-traded Canadian Corporation on the TSX Venture Exchange (Ticker Symbol: PYR) and on the OTCQB Marketplace. For more information, please visit www.pyrogenesis.com
This press release contains certain forward-looking statements, including, without limitation, statements containing the words “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “in the process” and other similar expressions which constitute “forward- looking information” within the meaning of applicable securities laws. Forward-looking statements reflect the Corporation’s current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding the acceptance of our products by the market, our strategy to develop new products and enhance the capabilities of existing products, our strategy with respect to research and development, the impact of competitive products and pricing, new product development, and uncertainties related to the regulatory approval process. Such statements reflect the current views of the Corporation with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Corporation’s ongoing filings with the securities regulatory authorities, which filings can be found at www.sedar.com, or at www.otcmarkets.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Corporation undertakes no obligation to publicly update or revise any forward- looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws.
Neither the TSX Venture Exchange, its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the OTCQB accepts responsibility for the adequacy or accuracy of this press release.
SOURCE PyroGenesis Canada Inc.
For further information please contact: Rodayna Kafal, VP, Investor Relations and Strategic Business Development, Phone: (514) 937-0002, E-mail: [email protected]Â
VANCOUVER, British Columbia, May 01, 2018 – Namaste Technologies Inc. (“Namaste†or the “Companyâ€) (CSE:N) (FRA:M5BQ) (OTCMKTS:NXTTF) is pleased to announce that the Company has received final approval to list the common shares and warrants of the Company on the TSX Venture Exchange (“TSXVâ€) as a Tier 1 issuer. The common shares and warrants of the Company will be delisted from the Canadian Securities Exchange at the close of trading on May 1, 2018 and listed on the TSXV at the opening of trading on May 2, 2018. The Company’s common shares will continue to trade under the symbol “N†and its warrants will continue to trade under the symbol “N.WT.†The Company believes that listing on the TSXV will provide Namaste and its shareholders with many advantages, including greater visibility and enhanced market access for Canadian and international investors.
Management Commentary
Sean Dollinger, President and CEO of Namaste comments: “We are very pleased to have received final approval to list on the TSXV as a Tier 1 issuer. We’re proud to have reached a point where the Company will gain more exposure through a larger market and to join many of our peers on the TSXV. We’d like to thank our shareholders and management team for their continued support. This is certainly an exciting day in the history of Namaste and we look forward to a bright future.â€
About Namaste Technologies Inc.
Namaste is the largest online retailer for medical cannabis delivery systems globally. Namaste distributes vaporizers and smoking accessories through e-commerce sites in 24 countries and with 5 distribution hubs located around the world. Namaste has majority market share in Europe and Australia, with operations in the UK, Canada and Germany and has opened new supply channels into emerging markets including Brazil, Mexico and Chile. Namaste, through its acquisition of Cannmart Inc., which operates a medical cannabis “sales-only†license under Canada’s Access to Cannabis for Medical Purposes Regulations (“ACMPRâ€), is pursuing a new revenue vertical in online retail of medical cannabis in the Canadian market. Namaste intends to leverage its existing database of Canadian medical cannabis consumers, along with its expertise in ecommerce to create an online marketplace for medical cannabis patients, offering a larger variety of product and a better user experience.
On behalf of the Board of Directors
“Sean Dollingerâ€
Chief Executive Officer
Direct: +1 (786) 389 9771
Email: [email protected]
Further information on Namaste and its products can be accessed through the links below:
namastetechnologies.com
namastevapes.ca
everyonedoesit.ca
namastevaporizers.co.uk
everyonedoesit.co.uk
australianvaporizers.com.au
Forward Looking Information
This press release contains forward-looking information based on current expectations. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Although such statements are based on management’s reasonable assumptions, Namaste assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this press release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company’s disclosure documents, which can be found under the Company’s profile on www.sedar.com. This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward looking statements are made pursuant to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995. The Canadian Securities Exchange has neither reviewed nor approved the contents of this press release.
Escondido, California–(May 1, 2018) – MARIJUANA COMPANY OF AMERICA, INC. (OTC: MCOA) (“MCOA” or the “Company”) is pleased to announce that the Company, in partnership with Global Hemp Group Inc. (CSE: GHG) (OTC: GBHPF) (FSE: GHG) has acquired a 109-acre agricultural property in Scio, Oregon (the “Property”) for the cultivation of high CBD yielding hemp for the upcoming 2018 growing season.
This particular property was chosen as it has a history of hemp cultivation over the last two growing seasons and contains a high level of organic matter in the soil, which makes it ideal for hemp cultivation. In addition, the property has appropriate irrigation infrastructure that includes sufficient authorized water rights to allow for irrigated cultivation, which is expected to greatly enhance yields of the proposed high CBD hemp cultivars that the partners are planning to grow on the property.
The property, located in the fertile Willamette Valley approximately 70 miles south of Portland, Oregon, was acquired for US$1.1 million. The terms of the acquisition include a cash down payment of US$130,000 and the issuance of 2,100,000 common shares in the share capital of GHG valued at US$275,000, to be delivered within 15 days of closing. The partners are each contributing one half of the cash consideration for the down payment purposes, or the amount of US$65,000. MCOA is also contributing a cash payment equal to one-half of the value of GHG’s stock consideration, or the amount of US$137,500, that will be paid from the expected profits to be produced from the project during the first year of operations.
The GHG common shares to be issued pursuant to the Acquisition Agreement are considered to be issued on a private placement basis, according to the CSE Policy 6. Such common shares are subject to a customary one (1) year hold period pursuant to the provisions of Rule 144 of the Securities Act of 1933. The balance, the amount of US$695,000, is a promissory note (“the Note”) issued to the current owner, which matures on May 1, 2021. Interest on the Note is set at 4.0% per annum, adjustable on the first day of October each year, based on the closing interest rate of the Ten-Year U.S. Treasury Note on September 30th plus 1.15%. The Note calls for monthly payments of US$7,036.54 beginning as of June 1, 2018, and a final payment of the remaining balance on May 1, 2021.
The partners have been exploring hemp cultivation and cannabinoid extraction opportunities in the U.S. Pacific Northwest for more than a year. The State of Oregon was chosen for this project due to climate considerations, the current regulatory environment in the State and availability of local experienced personnel.
About Marijuana Company of America, Inc.
MCOA is a corporation which participates in: (1) product research and development of legal hemp-based consumer products under the brand name “hempSMART™”, that targets general health and well-being; (2) an affiliate marketing program to promote and sell its legal hemp-based consumer products containing CBD; (3) leasing of real property to separate business entities engaged in the growth and sale of cannabis in those states and jurisdictions where cannabis has been legalized and properly regulated for medicinal and recreations use; and, (4) the expansion of its business into ancillary areas of the legalized cannabis and hemp industry, as the legalized markets and opportunities in this segment mature and develop.
About Global Hemp Group Inc.
Global Hemp Group Inc. (CSE: GHG) (OTC: GBHPF) (FSE: GHG), headquartered in Vancouver, British Columbia, Canada, with base operations in Montreal and Los Angeles, is a publicly traded company founded in 2014. The Company is focused on a multi-phased strategy to build a strong presence in the industrial hemp industry in both Canada and the United States. The first phase of this strategy is to develop hemp cultivation with the objective of extracting cannabinoids (CBD, CBG, CBN & CBC) and creating a near term revenue stream that will allow the Company to expand and develop successive phases of the strategy. The second phase of the plan will focus on the development of value-added industrial products utilizing the processing of the whole hemp plant, as envisioned in the Company’s Hemp Agro-Industrial Zone (HAIZ) strategy.
Forward Looking Statements
This news release contains “forward-looking statements” which are not purely historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as “anticipate”, “seek”, intend”, “believe”, “estimate”, “expect”, “project”, “plan”, or similar phrases may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company’s reliance on existing regulations regarding the use and development of cannabis-based products. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-12G, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission. For more information, please visit www.sec.gov.
For more information, please visit the Company’s websites at:
MarijuanaCompanyofAmerica.com
hempSMART.com
NetworkNewsWires/MCOA
Corporate Communications Contact:
NetworkNewsWire (NNW)
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
[email protected]
Toronto, Ontario–(Newsfile Corp. – May 1, 2018) – Augusta Industries Inc. (TSXV: AAO) (the “Corporation”) is pleased to announce that it has released its financial results for the year ended December 31, 2017 and for three months ended March 31, 2018.
Summary for Three Months Ended March 31, 2018
For the three months ending March 31, 2018, the Corporation had revenues of $1,720,000 as compared to $879,000 during the three months ending March 31, 2017.
Total profit from operations for the three months ending March 31, 2018 was $31,000 or a net profit of $0.00 per share compared to a loss of $77,000 or $0.00 per share for the three months ending March 31, 2017. Gross margins for the three months ending March 31, 2018 was 16% compared to 23% for the three months ending March 31, 2017 due to the change in mix between Macron and FOX-TEK sales during the period. The operating expenses in the three months ending March 31, 2018 was less at $244,000 compared to $277,000 for the same period in 2017. Stock based compensation during the three months ending March 31, 2018 was $31,000 compared to $101,000 during the three months ending March 31, 2017.
Summary for Year Ended December 31, 2017
For the year ended December 31, 2017, the Corporation had revenues of $2,556,000 compared to $4,596,000 during the year ended December 31, 2016.
Total loss from operations for the year ended December 31, 2017 was $666,000 or a net loss of $0.00 per share compared to a profit of $7,000 or $0.00 per share for the year ended December 31, 2016. Gross margins for the year ended December 31, 2017 was 21% similar to 22% for the year ended December 31, 2016. The operating expenses in the year ended December 31, 2017 was slightly higher at $1,209,000 compared to $1,019,000 for the same period in 2016. Stock based compensation during the year ended December 31, 2017 was $250,000 while there were no such expenses during the year ended December 31, 2016.
The financial statements, notes to the financial statements and Management’s Discussion and Analysis for the year ended December 31, 2017 and for three months ended March 31, 2018 are available on SEDAR at www.sedar.com.
Corporate Update – Business Development
Blockchain Technology
The Corporation has created a wholly owned subsidiary, Paragon Blockchain Inc. (“Paragon”) to commence the process of implementing blockchain technology. Paragon has entered into a memorandum of understanding with an undisclosed blockchain company (the “UBC”) to advise and develop a new set of blockchain applications for the Corporation. The UBC will act as technical advisor and initiate the process of developing a new set of blockchain applications that will integrate, amongst other things, artificial intelligence (“A.I.”) for the purpose of sorting critical procurement opportunities within US government agencies for Marcon International Inc. (“Marcon”), Fox-Tek Canada Inc. (“Fox-Tek”).
Blockchain technology has the potential to unlock substantial new opportunities capable of impacting the business of Marcon. Specifically, Marcon seeks to create an eco-system in the supply chain management of clients to change the dynamics of the scoping and bidding process by providing vendors and subcontractors with A.I. data mining tools to proactively drive the process.
Blockchain technology is of critical importance to Fox-Tek as well particularly the expansion of its’ non-intrusive technology in the oil and gas industry, whose clients include many of the biggest companies in the world. Fox-Tek believes a common system of record connecting data collected for events is of paramount importance to clients. The Corporation will create a platform that will allow for the analysis of data that incorporates an auditing system built for regulatory and quality assurance oversight. The platform will implement a distributed blockchain ledger using smart contracts. These smart contracts provide customization of blockchain data.
Fox-Tek Segment
Fox-Tek continues to support its independent sales agents and distributors primarily outside of North America with the intent of utilizing their local contacts and established relationships within the oil and gas industry to expedite the distribution of Fox-Tek’s products in the local jurisdictions.
After a very successful first introductory trip to India, Fox-Tek has submitted a number of technical proposals and bids on a number of different projects based on the Corporation’s various technologies. One of the more interested oil companies has requested a bid for 2 large EFM systems to be placed on vessels within a refinery. The client has provided a sample plate for testing purposes that would lead to a custom design for that specific material. The Corporation is also working on introducing our leak detection technology for long distance applications in India.
The Corporation has initiated talks with the Ontario Centres of Excellence (“OCE”) to supplement a number of high quality personnel within the OCE. This includes having a Post Doctorate Fellow to come to the offices of the Corporation and provide a full assessment on the company’s data analysis techniques and to look at ways to better manage our large database of data.
Through OCE, Fox-Tek, along with the McMaster University’s Centre of Opportunity, will be developing an innovative constant current source. This will be used across all of the Corporation’s EFM products, providing its existing and new clients with a better quality of analysis with the use of a high precision constant current source. A full prototype demonstrator has been completed.
The Corporation has been working to fulfill its obligations toward the engineering and field services to meet the requirements of the contract announced on July 10, 2017 with one of the Corporation’s largest and long standing clients in North America.
The Corporation is still working closely with the Trans Africa Pipeline project (“T.A.P.”) to provide non-intrusive sensing equipment which will verify the integrity of the pipeline composite at key locations. In addition to the non-intrusive sensing equipment, Fox-Tek will provide optical based sensing technology which would allow T.A.P. to monitor the right of way zones from possible third-party intrusions. The last update was that partial financing is completed and the site survey will be concluded for the Desalination Plant will be underway later in 2018.
The company is continuing with the qualification process with Petrobras to become a supplier of corrosion detection monitoring systems, optical strain/pressure/temperature sensors & leak detection technology.
The Corporation is working with FiBos on two separate applications to monitor pressure in injectors. These injectors are critical to the plant operations since failures could lead to slowdowns or shutdowns of operations. A proof of concept was successfully completed and we are current working Phase 2
Sales of EFM Corrosion Monitoring Systems
The Corporation has successfully completed 3 site surveys for one of its largest and long standing clients in North America and is negotiating a contract with the client to convert a competitor’s technology to Fox-Tek’s EFM technology.
The Corporation continues to work closely with engineering firms and major oil and gas companies in the Middle East, England, in addition to all the major Canadian companies. There have been increased interest in the Corporation’s products from a number of overseas markets including India and the UK. The Corporation entered into a contract in 2016 with a company in the U.K. for the supply of a custom built EFM system for a laboratory. This system was shipped out in the first quarter of 2017 and installed in the second quarter of 2017. The Corporation is confident this could lead to future orders for more portable and mobile systems that could be used for periodic monitoring for less critical applications.
The Corporation is also negotiating a contract for sale of another EFM unit to another of its clients.
DMAT Platform
The Corporation continues to enhance the DMAT platform (Data Management and Analysis Tool). Response from customers utilizing the DMAT service has been very positive. For DMAT, the revenue stream is guaranteed when a customer acquires the hardware. The Corporation has successfully negotiated new contracts with several clients, for engineering services and data analysis, for the 2017 fiscal year and beyond.
Leak Detection Technology
Fox-Tek’s leak detection technology has the potential of becoming a disrupting technology within the oil and gas sector due to its ability to detect minute amounts of volatile organic compounds present in hydrocarbon leaks. Due to the nature of the technology, it will likely have fewer false alerts unlike a number of competing technologies.
The company has an additional 5 bids for a number of applications utilizing a number of its technologies (EFM, FBG and leak detection.)
Marcon Segment
Marcon provides procurement and support services to existing and new projects worldwide in the energy sector. Initially Marcon had focused on providing services in the energy sector but moved on to government contracts and government services. Marcon has two subsidiaries, Marcon USA and Marcon UK, to help enhance and support its logistic and sales operations. Over the years it has established a good reputation and has been a consistent performer for its clients in the government as well as the international oil and gas industry.
Marcon has built an impressive pipeline of quotes in 2018 along with increased bidding activity. Majority of the larger bids and quotes for Marcon are time consuming both in preparation of the bidding process and with the client and the end users. Marcon has successfully signed numerous deals year to date and will continue to do so and update the public through periodic press releases. Backlog sales in Marcon for the period ending March 31, 2018 were $819,000.
About the Corporation:
Through its wholly owned subsidiaries, Marcon, Fox-Tek and Paragon, the Corporation provides a variety of services and products to a number of clients.
Marcon is an industrial supply contractor servicing the energy sector and a number of US Government entities. Marcon’s principal business is the sale and distribution of industrial parts and equipment (Electrical, mechanical and Instrumentation.) In addition to departments and agencies of the U.S. Government, Marcon’s major clients include Saudi Arabia-Sabic Services (Refining and Petrochemical), Bahrain National Gas Co, Bahrain Petroleum, Qatar Petroleum, Qatar Gas, Qatar Petrochemical, Gulf of Suez Petroleum, Agiba Petroleum and Burullus Gas Co.
Fox Tek develops non-intrusive asset health monitoring sensor systems for the oil and gas market to help operators track the thinning of pipelines and refinery vessels due to corrosion/erosion, strain due to bending/buckling and process pressure and temperature. The Corporation’s FT fiber optic sensor and corrosion monitoring systems allow cost-effective, 24/7 remote monitoring capabilities to improve scheduled maintenance operations, avoid unnecessary shutdowns, and prevent accidents and leaks.
Blockchain technology has the potential to unlock substantial new opportunities capable of impacting the business of Marcon. Specifically, Marcon seeks to create an eco-system in the supply chain management of clients to change the dynamics of the scoping and bidding process by providing vendors and subcontractors with A.I. data mining tools to proactively drive the process. Blockchain technology is of critical importance to FOX-TEK as well particularly the expansion of its’ non-intrusive technology in the oil & gas industry, whose clients include many of the biggest companies in the world.
Corporation contact:
Allen Lone, President, CEO, Augusta Industries Inc.
Tel: (905) 275 -8111 Ext 226 email: [email protected]
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and as neither approved nor disapproved the contents of this press release.
VANCOUVER, British Columbia, April 30, 2018 — Namaste Technologies Inc. (“Namaste†or the “Companyâ€) (CSE:N), (FRANKFURT:M5BQ), (OTCMKTS:NXTTF) is pleased to announce the filing of its unaudited quarterly financial statements, management’s discussion and analysis and certification of the quarterly filings for the second quarter of fiscal 2018. The statements for the period can be accessed on the Company’s SEDAR profile at www.sedar.com.
The Company’s sales for the second quarter of 2018 were $5.6M, representing a $3.7M or 195% increase quarter-over-quarter. Gross profit for the second quarter of 2018 was $1.9M, representing a $1.2M or 150% increase quarter-on-quarter. For the first six months of the year, the Company had sales of $10.6M, representing a $6.6M or 165% increase year-on-year. Gross profit for the first six months of 2018 was $3.6M, representing a $2.1M or 140% increase year-over-year. The gross profit increase relates primarily to the growth in revenue outside the United States.
Namaste’s management team is extremely encouraged by the financial position of the Company and anticipates seeing accelerated growth in Q3 and Q4 of 2018. The Company has been focused on launching many new initiatives, the most significant of which is the addition of medical cannabis sales through the Company’s wholly-owned subsidiary, Cannmart Inc. (“Cannmartâ€). Namaste will focus on expanding its international platform and in developing new opportunities domestically and abroad.
The Company has also seen a significant impact on Canadian operating costs for its hardware business, correlated to the integration of Namaste’s platform with Greenlane Canada Inc., whereby inventory management and order processing are fulfilled by Greenlane. The integration with Greenlane has completely removed all inventory costs and has also streamlined operations. The Company anticipates further cost reductions by pursuing similar strategic partnerships which bring long-term value to the Company and its shareholders.
Namaste’s management team is now highly focused on patient acquisition through the Company’s innovative telemedicine application, NamasteMD. To date, the company has acquired over 1,600 patients, all of which were driven organically through Namaste’s platform. The Company’s marketing team will be working through various marketing channels to further accelerate patient growth while expanding its clinic team in order to accommodate anticipated demand. With strong initial results on patient acquisition costs and conversion rates, Namaste believes that it will be able to acquire medical patients faster and at a lower cost than any of its industry peers.
The Company is also looking forward to trading on the TSX Venture Exchange (“TSXVâ€) as a Tier 1 issuer, which will provide Namaste and its shareholders with many advantages, including greater visibility and enhanced market access for Canadian and international investors.
Quarterly Financial Highlights
| Revenues by country | |||||
| For three months ended | For six months ended | ||||
| Country | February 28, 2018 |
February 28, 2017 |
February 28, 2018 |
February 28, 2017 |
|
| United Kingdom | $1,346,193.00 | $737,946.00 | $2,580,175.81 | $1,285,227.00 | |
| Australia | $1,234,429.00 | $91,371.00 | $2,650,200.00 | $170,254.62 | |
| United States of America | $1,140,217.00 | $525,518.00 | $1,817,768.84 | $1,437,529.00 | |
| Brazil | $380,879.00 | $100,591.00 | $735,322.92 | $202,514.00 | |
| Canada | $678,815.00 | $78,985.00 | $1,034,446.63 | $159,223.00 | |
| Germany | $287,878.00 | $32,660.00 | $550,487.86 | $56,097.00 | |
| New Zealand | $71,714.00 | $75,149.00 | $176,197.59 | $209,317.00 | |
| Ireland | $36,902.00 | $51,759.00 | $98,722.14 | $87,264.00 | |
| Israel | $94,160.00 | $26,367.00 | $157,004.13 | $48,603.00 | |
| Other | $362,643.00 | $186,760.00 | $764,614.08 | $338,265.38 | |
| Total | $5,633,830.00 | $1,907,106.00 | $10,564,940.00 | $3,994,294.00 |
Management Commentary
Sean Dollinger, President and CEO of Namaste comments: “We are very pleased with the Q2 financials. The Company continues to see quarter-on-quarter growth at a rapidly accelerating rate, even after having divested our US assets. Our management team remains focused on ramping up patient acquisition through NamasteMD, and we anticipate launching medical cannabis sales through Cannmart in the near future. Namaste will continue to pursue and develop innovative technologies for the cannabis industry. This will be achieved through forming mutually beneficial partnerships and in making strategic investments that bring value to both the Company and the cannabis sector as a whole. We feel that the Company is now positioned for significant growth going forward which will be achieved by accelerating patient acquisition, adding medical cannabis sales to our platform and by implementing new technologies to an already impressive platform.â€
About Namaste Technologies Inc.
Namaste is the largest online retailer for medical cannabis delivery systems globally. Namaste distributes vaporizers and smoking accessories through e-commerce sites in 24 countries and with 5 distribution hubs located around the world. Namaste has majority market share in Europe and Australia, with operations in the UK, Canada and Germany and has opened new supply channels into emerging markets including Brazil, Mexico and Chile. Namaste, through its acquisition of Cannmart Inc., which operates a medical cannabis “sales-only†license under Canada’s Access to Cannabis for Medical Purposes Regulations (“ACMPRâ€), is pursuing a new revenue vertical in online retail of medical cannabis in the Canadian market. Namaste intends to leverage its existing database of Canadian medical cannabis consumers, along with its expertise in e-commerce to create an online marketplace for medical cannabis patients, offering a larger variety of product and a better user experience.
Forward Looking Information
This press release contains forward-looking information based on current expectations. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Although such statements are based on management’s reasonable assumptions. The Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this press release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company’s disclosure documents which can be found under the Company’s profile on www.sedar.com.
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The CSE has neither reviewed nor approved the contents of this press release.
On behalf of the Board of Directors
“Sean Dollingerâ€
Chief Executive Officer Direct: +1 (786) 389 9771
Email: [email protected]
Further information on Namaste and its products can be accessed through the links below:
www.namastetechnologies.com
www.namastevaporizers.co.uk
www.everyonedoesit.co.uk
www.australianvaporizers.com.au
WHAT IS PEEKS?
Peeks is a new live streaming app where people can interact and transact in real time by sending cash tips as appreciation for content and or selling goods and services to their live viewers.
HIGHLIGHTS
Dante Disparte , Contributor
Burkley. Washington state. USA USA dollars bills in God we trust 29 December 2014. hoto by Francis Joseph Dean/Deanpictures) (Photo by Francis Dean/Corbis via Getty Images)
Blockchains record trust like an atomic clock records time. Unlike trust, time marches ever forward and is irreversible. What if trust could be recorded in the same manner, with exactly the same accuracy and fidelity? Trust can be lost just as soon as it is gained because of our reliance on experiential, opaque and analog methods of recording it. When someone says “trust me†it usually engenders doubt. Blockchain technology can change that. Each year for the last 18 years, Edelman, a global public relations firm, has issued a report called the Trust Barometer. While the study is a compelling snapshot in time of global attitudes and perceptions of trust in public and private institutions, the more interesting insights are gleaned by looking at this body of work longitudinally. By this measure, Edelman’s most recent Trust Barometer confirms the sentiments we have seen driving unprecedented outcomes in ballot boxes, on streets and in the market.
The surprising Brexit vote and the election of President Trump, which was a veritable trans-Atlantic echo where voters sowed the seeds of their distrust in status quo irrespective of the consequences, are two macro-level examples of the trust deficit. Indeed, following the Brexit vote, search terms for “what is Brexit?†and more troublingly, “what is the EU?†spiked in the U.K., showing the combustible political mix of antiestablishment tendencies, blended with populism and two-speed economic recovery. Many pollsters and analysts missed just how deep this wellspring of mistrust really is and only six newspapers in the U.S. were in favor of the antiestablishment candidate Trump. The erosion of institutional trust is borne, in no small measure, out of opacity, informational asymmetries and agency issues that prop up status quo and friction-laden institutions. Other than climate change, extreme income inequality and pandemics, the global trust deficit may be one of the world’s direst challenges – noting that they are all interconnected. The trust deficit is the wellspring that irrigates the seeds of political risk and social polarization reversing the course on globalization and multilateralism.
Against this complex backdrop, blockchains are no panacea, but with the right blend of leadership and institutional shifts from analog to digital, and eventually to decentralized structures, we can begin arresting the trust deficit. Markets, customers, investors and other stakeholders have all grown tired of learning about the misdeeds of large organizations during rare glimpses of sunlight that creeps through the crevices. Recent examples include Equifax executives selling stock days after a massive breach was discovered that exposed nearly the entire U.S. workforce to a lifetime of identity and financial risk. The massive account rigging scandal at Wells Fargo is another recent example that conspired to fuel growing distrust and anger in the market. Companies and institutions are responding to this trust deficit in many ways, often with the opposite expected outcomes. Starbucks’ recent decision to close 8,000 its U.S. stores on May 29 in response to the wrongful arrest of two black patrons at a store in Philadelphia may be such an overreaction to regain trust. The slow and somewhat tone-deaf response from Mark Zuckerberg, Facebook’s media-shy CEO, following the Cambridge Analytica scandal, which may have had election-swaying impacts, certainly contributed to Facebook’s trust deficit. Although counter-intuitively Facebook has enjoyed a 50% quarterly revenue gain, showing that the platform may be too big to avoid or there is a lag effect in the market.
This corporate trust deficit is not singularly a U.S. phenomenon, as the Volkswagen emission-rigging scandal confirmed the cynical view that in the pursuit of growth there is no triple bottom line. Indeed, institutional misdeeds have shown that there may be no ethical lines at all in the pursuit of profit, power maximization and preservation. From finance, to elections, to combating fake news or guaranteeing supply chain provenance, market participants are desperately searching for ways of asserting how trustworthy they are beyond corporate social responsibility, marketing initiatives and executive promissory statements. With the impressive wave of blockchain prototyping taking place in many sectors, the solution to this global trust deficit is beginning to see the light of day. Indeed, some are beginning to argue – perhaps to blockchain’s detriment – that the mere mention of the technology confers a good housekeeping seal of trustworthiness – a veritable LEED certification of trust.
When blockchain, like the internet before it, fades to the background, it can begin changing the world. For this to take place, many entrenched and centralized institutions, which have become the single points of failure in the global economy accruing an embarrassment of power and riches, will need to be transformed. Blockchain will not take these bricks apart one by one, contrary to the whims of technology investors, crypto-utopians and speculators. Rather, these groups will be forced to change by the growing trust deficit that is sandblasting the veneer from even the most sacrosanct institutions. If the internet created a world of low fiction communication, blockchain can create a world of low fiction value transfer, in no small measure because of the irrevocable way in which it records trust.
It is worth noting that bitcoin and the rise of cryptocurrencies as a trillion-dollar asset class in 2017, was spurred without the oversight of a central bank or monetary authority guaranteeing trust or market conduct. Code and the bitcoin blockchain achieved a level of trust that millions of people, thousands of regulators and hundreds of enforcement agencies around the world struggle to maintain – all in a fraction of the time, with a higher degree of security and an infinitesimally lower cost. However, for the true impacts of this technology (like the internet before it) to take hold, the conversation needs to shift from how to why and the technology must recede. We are at the very crest of the blockchain hype cycle where there is a lot of sizzle, little steak and the occasional setback or indictments. All of this denotes progress.
Unfortunately, entrenched centralized institutions from politics, business and civil society, have little interest in truly deconstructing their business models to withstand the trust age. This is a similarly perilous play as the traditional media firms that ignored the rise of their digital twins, or the box retailers that ignored the rise of Amazon – same outcomes, more efficient delivery. Ever since the Bretton Woods system pegged the global economy to promissory statements made behind closed doors and affixed on physical currencies emblazoned with words like In God We Trust, trust became the world’s thrift. This rules-based system is being challenged by the return of economic nationalism and trade wars. Indeed, proto-currencies that predate their pecuniary and digital twins by many thousands of years relied on many of the same mechanics as the cryptocurrencies that are the latest offshoots of our need for trust-based value exchange.
The world is facing many deliberate and unintended distortions of our social, economic and political order. In short, complex forces are arrayed against the institutions that sowed post-war stability and trust is the first casualty in this war. Social media platforms, such as Twitter, which the U.S. president has come to rely on almost singularly to convey his political, military and economic messages, is rife with fake news inducing bots, which comprise nearly 50 million of the platform’s users driving an outsized volume of site traffic. Facebook proved to be an efficient backdoor for micro-targeting the minds of millions of voters, further isolating people in information bubbles of their own “truth.â€Â An equally unprecedented wave of complex risks, from climate change to cyber threats, calls into question the value of citizenship in even the most powerful economies in the world. Puerto Rico’s plight is very much the canary in the climate change coal mine. 60% of FEMA claims being denied to households in Puerto Rico due to challenges evidencing property ownership highlights the critical flaw of relying on paper-based analog records in a risk-prone digital world. In this world, a dollar may be worthless, a vote uncounted, a politician unaccountable and a contract unenforceable. Blockchain can bridge these gaps and shore up the erosion of trust. To do this, adopting blockchain technology in large institutions that benefit from status quo is more about leadership and a frame of mind, than it is about technology or digital transformation.
Source: https://www.forbes.com/sites/dantedisparte/2018/04/26/why-blockchain-why-now/#db0fb1b4f428