Zentek develops fire retardant product

Executive Summary

• Zentek Ltd. granted Altek Advanced Materials Inc. an exclusive license to commercialize a new graphite gel-based fire-retardant product, "GraphGel," in the U.S. market.
• The agreement includes a 5% royalty on net sales, with a minimum annual royalty of $1 million required to maintain exclusivity after an 18-month ramp-up period.
• Independent testing by Intertek confirmed the product achieves a Class A fire rating (Flame Spread Index of 5 to 25), and live demonstrations showed significant protection against temperatures up to 1,500°C.

Key Details

• Agreement Structure: Conditional exclusive license for the U.S. market, dated November 4, 2025.
• Financial Terms:
  • 5% royalty on Altek’s net sales derived from GraphGel.
  • Minimum annual royalty payment of $1 million required to maintain exclusivity.
  • License converts to non-exclusive if annual royalty payments fall below $1 million after an 18-month ramp-up period.
  • Altek to pay Zentek for personnel and development costs.
  • Altek assumes responsibility for all supplementary testing and chemical expenses.
• Product Specifications:
  • Name: GraphGel (trademarked).
  • Composition: Biofriendly biopolymer with pH-responsive viscosity and expandable graphite (intumescent).
  • Application: Rapidly sprayed; covers an average 2,500-square-foot home in under 30 minutes.
  • Durability: Dries to a stable char; can be washed off with water after fire risk passes.
• Testing Results (Intertek, ASTM E84):
  • Low loading (0.3–0.4 cm thickness): Flame Spread Index (FSI) of 25.
  • High loading (0.6–0.7 cm thickness): Flame Spread Index (FSI) of 5.
  • Both achieved Class A fire rating, the highest possible.
• Live Demonstration (Santa Clarita, Calif., Oct 24, 2025):
  • Exposed coated and uncoated structures to 1,500°C flames for two minutes.
  • Uncoated control structures were engulfed in flames and windows shattered.
  • Coated structures protected surfaces; windows remained intact; minimal ember production.
  • Coating washed away easily post-test with minor damage.
• Intellectual Property: Zentek retains ownership of the GBFR IP; a provisional patent has been filed titled "intumescent gels for rapid, short-term protection against fire and flame spread."
• Technology Readiness: Reached Technology Readiness Level (TRL) 5, validated in a simulated relevant environment.
• Term: Five years, with a renewal option for an additional five years.

Notable Quotes

• Greg Fenton, CEO of Altek: "As I have transitioned to lead Altek, I am thankful for the great relationship I continue to have with Zentek. I started Altek to commercialize Zentek technology in the U.S., and this new product GraphGel is a key component of our recently launched complete fire management solution called the Wildfire Guardian. The response we are receiving for this product is substantial."
• John Snisarenko, Board Chair of Zentek: "I am proud of our research team who were able to identify a market and product need and develop a new technology to a high TRL level resulting in a commercial licence and complete a very successful real-world demonstration. Wildfires are a real tangible risk for many Canadians and Americans, and this product has been designed to help homeowners and businesses protect their important assets."