QuantumSphere Optimistic for the Commercialization and Market Potential of Ammonia FeNIX Product

Working Closely with Casale in Sales Discussions to Ammonia Chemical Plants Debt Conversions Have Improved Company Balance Sheet

SANTA ANA, CA / ACCESSWIRE / February 28, 2017 / QuantumSphere, Inc. (OTC PINK: QSIM), a developer and manufacturer of advanced catalyst materials designed to increase process efficiencies and production output in commercial-scale chemical plants, today issued a business and corporate update to its shareholders.

QuantumSphere continues to operate its pilot manufacturing facility in Santa Ana, CA and although the sales process has taken longer than expected, the Company is still active with its partner, Casale, S.A., in pursuing an ammonia plant operator as a customer. The Company is optimistic that its ammonia FeNIX™ product can add significant value to ammonia plant operators and that an install at a live operating plant may occur in 2017. After 14 years of research and development, more than $35 million of invested capital and having worked closely with Casale for the past six years, QuantumSphere believes all of the hard work will result in commercialization; it’s just a matter of when.

2016 was a milestone year for QuantumSphere, as it was issued a key ammonia patent in March 2016 and executed a 10-year commercialization agreement with Casale also in March 2016. The U.S. Patent and Trademark Office issued a key patent related to its advanced FeNIX nanocatalyst accelerator technology. The patent covers claims around the application of iron nanocatalysts, applied as a coating onto existing commercial ammonia catalysts, for increased catalytic activity and production efficiency in ammonia synthesis. As of today, QuantumSphere has 10 issued patents.

The Company entered into a multi-year Commercialization Partnership Agreement with Swiss-based Casale S.A. (Casale), pursuant to which the parties agreed to the terms of commercialization of the Company’s QSI-Nano iron catalysts for ammonia synthesis. Casale is restricted from entering into any agreement with any third party for any purpose relating to the use of nano-sized particle based catalysts in ammonia synthesis. Further, during the term, Casale has exclusive rights to commercially market, co-brand and sell the FeNIX product into the ammonia market globally, with the exception of China. The Company is now in the initial commercialization phase with its partner Casale in addressing the market opportunity within the $100 billion annual ammonia market. Per its commercialization agreement, Casale is responsible for the sales and marketing efforts of FeNIX to its existing and prospective customers.

QuantumSphere is currently in sales discussions with multiple ammonia plant operators. A particular focus is on India due to their compelling need and the size of the market (India is the #2 world producer of ammonia after China). “QuantumSphere has generated considerable excitement in India this past year, where the increased output and energy savings that its FeNIX product can provide are particularly critical,” says Bill Collins, Executive Vice President of GRMC, QSI’s representative company in India. “QSI was a featured presenter at India’s most prestigious fertilizer conference and has caught the attention of the “who’s who” of the Indian chemical industry.”

The recent stock activity in QuantumSphere, which has witnessed a dramatic decline in price and significant increase in volume, is a result of debt converting to equity. While it caused a major drop in stock price, the debt conversions have improved the company’s balance sheet. The Company may experience further conversions of debt to equity in the near future. Investors are encouraged to carefully review QuantumSphere’s latest 10-Q filing for details. In this regard, the Company is exploring opportunities related to additional financings, licensing of its technology, and a possible sale of assets pursuant to an asset purchase agreement. The Company has had preliminary discussions with multiple parties that have expressed an interest in additional debt financing or acquiring company assets.

About QuantumSphere, Inc. (QSI)

QuantumSphere, Inc. (OTC PINK: QSIM), is a developer and manufacturer of advanced catalyst materials used in the production of industrial chemicals. The Company’s lead product, FeNIX™, is a nanocatalyst used in the production of ammonia that integrates with existing commercial catalysts. It improves process efficiencies and production output, with real-world applications documented at up to 15% improvement. These efficiencies reduce energy consumption and deliver greater profits to chemical plant owners and operators. QSI’s value proposition is applicable to hundreds of chemical plants globally, representing billions of dollars in annual output. The company is presently focused on the $100 billion per year ammonia market, (82% of which is used to make fertilizer for food production) and has partnered with Swiss-based Casale, a 95-year-old engineering firm whose technology is utilized in nearly 40% of the world’s production of ammonia. QuantumSphere is also leveraging its intellectual property to develop catalysts for other key chemical markets, such as methanol and light olefins. The Company is based in Santa Ana, California and its common stock is quoted on the OTCQB under the ticker symbol QSIM. For more information, visit www.qsinano.com.

Contact Information

Stephen Hart, Hayden IR
hart@haydenir.com
917-658-7878

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SOURCE: QuantumSphere, Inc.

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