Zero Spin Silicon, page-92

Hi all. I have been in and out of Silex in a relatively minor way over the past 5-6 years. So much of their technology/IP seems to be very disruptive but I have struggled to get my head around the science (it is way beyond my ability to understand) and cannot quite work out when it will become commercialised with the attendant share price growth that comes. But I am intrigued and do monitor and thinking about dipping my toes in the water once more.

I thought I would take a closer look at the Zero Spin Si part of the business and have put together the diagram below to try and understand the players and relationships. I am sure there is not a lot new here for the old hands but it might help bring new hands up to speed a bit? Do let me know if I have got something wrong and I will amend.

• Silex have two partners, directly with SQC (the relatively new business set up 2017 I think with some serious $83M investment as shown in commercialising the ZS-Si tech) and indirectly with CQC2T (Centre for Quantum Computing and Communication Technology) as the research entity, itself with significant ARC funding
• Check out both the partner websites and it is clear that they are serious players in the quantum computing space with leading researchers and good funding
• All three parties (Silex/SQC and CQC2T) are partners in the three year $8M CRC-P funded project to produce pure Si for a silicon computing chip to be developed by SQC. I believe all parties contribute 'in-kind' (labour/office/tech) resources to the project which is then matched with $3M in federal funding. Its in Stage 2 at present and includes for Silex setting up the plant needed to produce ZS-Si in 'commercial' quantities.
• There is an offtake agreement in place for the supply of an unknown (a few kg's?) of ZS-Si to SQC for a value of $1.8M from 2023 onwards. I am not sure if this $1.8M forms part of the CRC-P project scope or is something additional. But I recall some mention of three $600K payments being made/to be made?
• I believe SILEX retain ownership of the plant being developed for the project and also the resulting IP for ZS-Si production.