Comstock Inc. (NYSE: LODE) (“Comstock” and the “Company”) today
announced the realization of a series of key milestones by
Comstock’s strategic investee, Quantum Generative Materials LLC
(“GenMat”), including commencement of early adopter sales,
qualifying GenMat for significant additional financing at increased
valuations that capitalizes on broadly increased investment
interest in developers of generative artificial intelligence
technologies. Comstock and GenMat have accordingly entered into an
agreement that realigns existing equity investment agreements while
simplifying and positioning GenMat for accelerated growth.
Key Highlights
- GenMat’s physics-based AI software
for high throughput materials discovery is now proven to simulate
tens of thousands of new material properties with unique structures
at upwards of more than 98% accuracy, dramatically reducing trial
and error cycles and accelerating months of development time down
to hours.
- GenMat is in discussions with
several early adopters, including globally recognized stakeholders
in high value applications, for commercializing across several
industries starting with batteries and semiconductors.
- GenMat’s hyperspectral orbital
imaging satellite the GENMAT-1 successfully launched into Low Earth
Orbit (LEO) and has established continuous contact with GenMat’s
proprietary Mission Control Software (MCS).
- GenMat developed ready for use
generative AI-based software that predicts relevant information
pertaining to precious mineral deposits, validated on USGS and
Comstock data, and is also currently commercializing.
- GenMat’s realization of these and
other confidential technical milestones by GenMat’s world-class
technical team mark a pivotal moment in GenMat’s evolution from
conception to maturity, as GenMat’s technology transitions to a
technology readiness level of 6 (prototype demonstration in
relevant environments).
- Comstock’s prior investment
agreements called for a milestone-based investment of $50,000,000
for 50% of GenMat’s fully diluted equity, of which approximately
$15,000,000 has now been paid.
- Comstock and GenMat have agreed to
realign the investment agreement based on GenMat’s significant
achievements to date and current strategic, technical, and
commercial development plans as follows:
- Comstock’s previously paid
$15,000,000 at a circa-2021 post-money valuation of about
$46,000,000, now represents approximately 32% of GenMat’s fully
diluted equity;
- Comstock has committed up to another
$25,000,000 over four years at a current post-money valuation of
$200,000,000, increasing Comstock’s stake to up to 40% of GenMat’s
fully diluted equity, until such time as GenMat accesses outside
capital (expected for later this year); and,
- Comstock’s overall commitment is
reduced from $50,000,000 to $40,000,000, with participation and
drag-along rights on future financing and liquidity events by
GenMat.
- Comstock will license GenMat’s
technologies on a modified non-exclusive early adopter basis in
mining applications and on an exclusive early adopter basis for
biofuels development and applications.
Maturing Rapidly
OpenAI's ChatGPT employs a generative large language model to
generate new, valuable information for a wide range of use cases at
orders of magnitude faster than what was previously possible.
GenMat's AI operates similarly, but instead of generating words and
language for a wide range of use cases, it generates new atoms,
molecules, and physical systems for a wide range of materials
applications, harnessing aspects of humanity's collective knowledge
of physics and chemistry combined with proprietary synthetic
datasets to discover new materials in an exponentially shorter time
than traditional methods have allowed. To put this into
perspective, new material discovery typically takes decades and
tens to hundreds of millions of dollars. GenMat's AI can simulate
tens of thousands of unique new materials in some cases at more
than 98% precision and accuracy within just a matter of hours.
“GenMat has built an exceptional team, a remarkable data
infrastructure and platform, and achieved a series of critical
technical milestones and readiness surrounding its physics-based
AI, simulation, engineering, and satellite remote sensing
technology, remarkably, with less than $15 million to date, and
they are now actively commercializing its solutions with
sophisticated, industry leading technical, industrial and
governmental partners,” said Corrado De Gasperis, Comstock
Executive Chairman and Chief Executive Officer. “GenMat’s
technologies are maturing much faster than anticipated when we
first invested in 2021, qualifying GenMat for significant
additional financing at increased valuations that capitalize on
broadly increased investment interest in developers of generative
AI-based technologies. The realignment and simplification of our
investment agreements positions GenMat to accelerate its
commercialization and monetization efforts in every way while we
retain our rights in the biofuels and mining fields.”
Comstock’s operations primarily involve the innovation,
development, commercialization, and monetization of intellectual
properties and related assets, with teams focused on each core
function in dedicated lines of business. Comstock also makes, owns,
and manages investments in strategic technology developers to
support its businesses, as recently demonstrated with significant
realized and unrealized gains in Comstock’s metals
investments.
Comstock’s investment in GenMat was and remains highly strategic
to the expansion and monetization of our mineral estate and the
advancements in the production of breakthrough renewable
replacements for fossil crude at cost parity.
About Quantum Generative Materials LLCQuantum
Generative Materials LLC (“GenMat”) was founded in 2021 to develop
and commercialize generative artificial intelligence models for the
discovery of new materials and minerals. GenMat is a strategic
investee of Comstock Inc. (NYSE: LODE), an innovator of
technologies that enable systemic decarbonization and net zero
circularity. GenMat is expanding the advancement of simulation and
manipulation of matter for the discovery and development of new
materials and minerals. GenMat has also built next generation
physics software libraries that, when coupled with our generative
AI, can dramatically accelerate materials development. These
libraries and preloaded physics-models are customized, scaling and
evolving. To learn more, please visit www.genmat.xyz.
About Comstock Inc.Comstock Inc. (NYSE: LODE)
commercializes innovative technologies that contribute to global
decarbonization by efficiently converting under-utilized natural
resources, primarily, woody biomass into net zero renewable fuels,
end-of-life metal extraction, and generative AI-enabled advanced
materials synthesis and mineral discovery. To learn more, please
visit www.comstock.inc.
Comstock Social Media PolicyComstock Inc. has
used, and intends to continue using, its investor relations link
and main website at www.comstock.inc in addition to its Twitter,
LinkedIn and YouTube accounts, as means of disclosing material
non-public information and for complying with its disclosure
obligations under Regulation FD.
CONTACTS:For investor inquiries: RB Milestone
Group LLCTel (203) 487-2759ir@comstockinc.com
For media inquiries or questions: Comstock
Inc., Zach SpencerTel (775)
847-7532questions@comstockinc.com
Forward-Looking Statements
This press release and any related calls or discussions may
include forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. All statements,
other than statements of historical facts, are forward-looking
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“estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,”
“would,” “potential” and similar expressions identify
forward-looking statements but are not the exclusive means of doing
so. Forward-looking statements include statements about matters
such as: future market conditions; future explorations or
acquisitions; future changes in our research, development and
exploration activities; future financial, natural, and social
gains; future prices and sales of, and demand for, our products and
services; land entitlements and uses; permits; production capacity
and operations; operating and overhead costs; future capital
expenditures and their impact on us; operational and management
changes (including changes in the Board of Directors); changes in
business strategies, planning and tactics; future employment and
contributions of personnel, including consultants; future land and
asset sales; investments, acquisitions, joint ventures, strategic
alliances, business combinations, operational, tax, financial and
restructuring initiatives, including the nature, timing and
accounting for restructuring charges, derivative assets and
liabilities and the impact thereof; contingencies; litigation,
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and changes in the regulatory environment; offerings, limitations
on sales or offering of equity or debt securities, including asset
sales and associated costs; business opportunities, growth rates,
future working capital, needs, revenues, variable costs, throughput
rates, operating expenses, debt levels, cash flows, margins, taxes
and earnings. These statements are based on assumptions and
assessments made by our management in light of their experience and
their perception of historical and current trends, current
conditions, possible future developments and other factors they
believe to be appropriate. Forward-looking statements are not
guarantees, representations or warranties and are subject to risks
and uncertainties, many of which are unforeseeable and beyond our
control and could cause actual results, developments, and business
decisions to differ materially from those contemplated by such
forward-looking statements. Some of those risks and uncertainties
include the risk factors set forth in our filings with the SEC and
the following: adverse effects of climate changes or natural
disasters; adverse effects of global or regional pandemic disease
spread or other crises; global economic and capital market
uncertainties; the speculative nature of gold or mineral
exploration, and lithium, nickel and cobalt recycling, including
risks of diminishing quantities or grades of qualified resources;
operational or technical difficulties in connection with
exploration, metal recycling, processing or mining activities;
costs, hazards and uncertainties associated with precious and other
metal based activities, including environmentally friendly and
economically enhancing clean mining and processing technologies,
precious metal exploration, resource development, economic
feasibility assessment and cash generating mineral production;
costs, hazards and uncertainties associated with metal recycling,
processing or mining activities; contests over our title to
properties; potential dilution to our stockholders from our stock
issuances, recapitalization and balance sheet restructuring
activities; potential inability to comply with applicable
government regulations or law; adoption of or changes in
legislation or regulations adversely affecting our businesses;
permitting constraints or delays; challenges to, or potential
inability to, achieve the benefits of business opportunities that
may be presented to, or pursued by, us, including those involving
battery technology and efficacy, quantum computing and generative
artificial intelligence supported advanced materials development,
development of cellulosic technology in bio-fuels and related
material production; commercialization of cellulosic technology in
bio-fuels and generative artificial intelligence development
services; ability to successfully identify, finance, complete and
integrate acquisitions, joint ventures, strategic alliances,
business combinations, asset sales, and investments that we may be
party to in the future; changes in the United States or other
monetary or fiscal policies or regulations; interruptions in our
production capabilities due to capital constraints; equipment
failures; fluctuation of prices for gold or certain other
commodities (such as silver, zinc, lithium, nickel, cobalt,
cyanide, water, diesel, gasoline and alternative fuels and
electricity); changes in generally accepted accounting principles;
adverse effects of war, mass shooting, terrorism and geopolitical
events; potential inability to implement our business strategies;
potential inability to grow revenues; potential inability to
attract and retain key personnel; interruptions in delivery of
critical supplies, equipment and raw materials due to credit or
other limitations imposed by vendors; assertion of claims, lawsuits
and proceedings against us; potential inability to satisfy debt and
lease obligations; potential inability to maintain an effective
system of internal controls over financial reporting; potential
inability or failure to timely file periodic reports with the
Securities and Exchange Commission; potential inability to list our
securities on any securities exchange or market or maintain the
listing of our securities; and work stoppages or other labor
difficulties. Occurrence of such events or circumstances could have
a material adverse effect on our business, financial condition,
results of operations or cash flows, or the market price of our
securities. All subsequent written and oral forward-looking
statements by or attributable to us or persons acting on our behalf
are expressly qualified in their entirety by these factors. Except
as may be required by securities or other law, we undertake no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events,
or otherwise. Neither this press release nor any related calls or
discussions constitutes an offer to sell, the solicitation of an
offer to buy or a recommendation with respect to any securities of
the Company, the fund, or any other issuer. Neither this press
release nor any related calls or discussions constitutes an offer
to sell, the solicitation of an offer to buy or a recommendation
with respect to any securities of the Company, the fund, or any
other issuers.
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