CEO Letter to NexOptic Shareholders
VANCOUVER, BC–(Marketwired – December 19, 2017) –
For the audio version of today’s news release please visit https://nexoptic.com/news/
NexOptic Technology Corp. (“NexOptic”) (OTCQX: NXOPF) (TSX VENTURE: NXO) (FRANKFURT: E301) (BERLIN: E301) is pleased to provide its shareholders with the following letter from the Company’s Chief Executive Officer, John Daugela.
Dear fellow shareholders,
I begin this letter by expressing my deepest gratitude to fellow shareholders of NexOptic for their continued support of our technological goal: enabling the world to see further with our disruptive optical technologies. 2017 was a year of accomplishments that fortified NexOptic’s foundation and principles.
Being a potential disruptor with novel, ‘outside the box’ designs in the optical industry is challenging, as you might imagine, but potentially very rewarding both from an economic and legacy perspective.
When NexOptic started on this path a few years ago, we had one groundbreaking concept. Its potential was obvious to those close to it, myself included, but it was still perceived by many as a wild idea in optics, and from Canada no less.
So called ‘wild ideas’ – like many new and innovative technologies – often garner the attention of doubters and skeptics. Ours certainly attracted both. Thus far, we have proved them wrong.
2017 was a breakthrough year, and one of validation, for our young company. We showed the capital markets and industry participants that NexOptic is working at the leading edge of optical innovation.
From a market perspective, 2017 marked a period of great progress and appreciation of NexOptic’s market capitalization. It was, however, not without substantial volatility in our share price. Rest assured, those days of exceptional price action and volatility in our stock were not lost on management. Being a publicly traded company, NexOptic will always be measured significantly by its share price/market-cap. Our company has been steadfast, during periods of both market calm and volatility, in our dedication to innovation, business development, and product engineering.
From a business development perspective, we made tremendous progress in 2017. We completed a first-of-its-kind proof-of-concept telescope prototype, which utilized our inaugural optical design – a system containing flat optical elements. This system marked the first lens design for the Blade Optics™ brand, and enabled an unprecedented form factor of a near 1:1 lens stack depth-to-aperture ratio. The prototype’s lens stack depth-to-aperture ratio is significantly thinner than comparable conventional telescopes on the market today, which would typically require approximately three or more times the depth for the same aperture size (see Company press release from February 21, 2017 for further details). It’s important to note this was a proof of concept. It validated our first optical design, a radical departure from conventional imaging systems, in part because it used several flat surfaces and a square aperture. Specifications aside, more than anything, I believe the prototype demonstrated the innovative thinking, technological capabilities, and disruptive potential our team brings to this exciting industry.
As we complete 2017, Blade Optics™ is no longer a ‘one lens design brand.’ Thanks to the development and learnings from our proof-of-concept, Blade Optics™ has grown into a suite of optical innovations with the potential to increase aperture sizes within given depth constraints in many imaging applications. Increasing the aperture size is critically important in optics because a lens system can have a much better diffraction limit than a smaller aperture system, providing the potential for greatly improved resolution capabilities.
The term Blade Optics™ now refers to all NexOptic lens designs, algorithms, and mechanics, which vary from patented to patent-pending, and includes all of our intellectual property and know-how. The proof-of-concept was our beachhead; with the knowledge gained from its development, we engineered new lens designs in 2017, which we believe are individually suited for different imaging applications. This includes our latest optical designs currently in the development and patent-pending stages, enabling us to simultaneously pursue two imaging applications today: mobile devices and sport optics.
Our growth in 2017 was a function of continually making important investments in technological development, talented professionals, and systems. This will continue to be a key driver in our future.
NexOptic’s 2017 highlights include the following:
- We achieved “first light” in our revolutionary, proof-of-concept telescope prototype, allowing us to capture and publish photographs of the moon using our inaugural Blade Optics™ lens system. In April, we delighted investors and the press alike at a special event of more than 200 people in Vancouver to unveil our prototype. This milestone was executed via a patient yet aggressive collaboration with the brilliant optical engineers at Ruda-Cardinal in Tucson, AZ.
- The USPTO issued a strategic patent on our inaugural lens design used in our proof-of-concept (see press release from June 29, 2017 for further details).
- We strengthened our Board of Directors with the appointment of Stephen Petranek, renowned technology futurist; Arch Meredith, accomplished Silicon Valley-based technology investor and experienced entrepreneur; and Karen Fleming, former Corporate Secretary and General Counsel Canada at Canadian Pacific Railway, a TSX 60 company. Our board brings industry knowledge, financial acumen, business experience, and dedication to helping us achieve our goals.
- In November, we started developing our first potential commercial product with the assistance of the award-winning firm “NewDealDesign.” The goal is to produce a transformative outdoor recreational consumer product that enhances activities such as hiking, fishing, sporting events, wildlife viewing, and more. NewDealDesign of San Francisco, California, is a global leader in strategic technology design. They are the design firm behind some of the most innovative and market-winning products created over the last two decades by some of the world’s leading companies, including Intel, Microsoft, Google, Fitbit, Comcast, and many more (see our press release from November 20, 2017 for further details).
- We advanced the development of a smartphone lens system that is showing potential to disrupt this highly competitive industry. After collecting industry feedback and internal research, we believe our design provides the largest aperture and longest focal length within the given depth constraints of a typical smartphone – two key contributing specifications for telephoto systems. Our lens design for smartphones has shown potential to offer the marketplace much improved long-range imaging capabilities. We have filed a patent application with the USPTO relating to this new design and intend to complete the prototype and demonstrate it to industry participants in 2018 (see our press release from October 11, 2017 for further details).
- We completed an oversubscribed, non-brokered private placement for proceeds of approximately CAD$7.4 million in August 2017.
- Shares in our Company were accepted for trading on the OTCQX in the United States.
- NexOptic was selected for inclusion in the 2017 TSX Venture 50®, a ranking of the top performers on the TSX Venture Exchange, ranking second overall in the technology sector.
- Upon completing our acquisition of Spectrum Optix, we further strengthened our management team by appointing Darcy Daugela as company Chairman, and myself as Chief Executive Officer. Paul McKenzie retains his role as President and has been appointed Chief Business Officer.
NexOptic Moving Forward with Ambitious Objectives
This past year provided NexOptic with the proper launch point from which to continue to execute and excel against our ambitious objectives. With 2017’s great accomplishments, we’re embarking on a new year that will be as much about developing partnerships and commercialization opportunities as it is about continual optical innovation, the lifeblood of our company.
One of the things I particularly love about NexOptic is that we are not limited by just one or even a “few” potential markets; there are many potential verticals in several industries that we hope to pursue effectively. With the growth of smartphones, social media, and other global technologies and platforms that promote sharing media, it is estimated that there will be more than 1 trillion images taken this year, and every image requires a lens system.
For 2018, major priorities for us will be to develop and work towards our first commercial product for the sport optics market, as well as to complete the demonstration prototype for the mobile device marketplace. I very much look forward to the challenges and opportunities in the year ahead for our company.
In conclusion, I wish to offer my sincerest thanks to the hardworking men and women that make up NexOptic’s team of dedicated professionals. I’m constantly impressed by their commitment, character, and depth of knowledge. It is an honour to serve as Chief Executive Officer and, on behalf of the whole team, I once again thank our shareholders. I truly hope 2018 will be a joy-filled and prosperous year for you; a year filled with both appreciation for the past and renewed ambition for the future. May it be a year to improve the lives of others, and inspire them to see further.
NexOptic Technology Corp.
John Daugela, Chief Executive Officer
About NexOptic Technology Corp.
NexOptic is a creative optical development company which aims to enhance the way we view the world around us. Currently focused on engineering its first consumer product for the growing outdoor recreation market, as well as a demonstration prototype for the mobile device space, NexOptic is aggressively pursuing a multi-pronged optical innovation strategy. Utilizing Blade Optics™, the Company’s developing suite of innovative optical technologies, NexOptic aims to increase aperture sizes within given depth constraints of various imaging applications. Increasing the aperture size enables a lens system to have an improved diffraction limit, thus providing the potential for increased resolution capabilities.
Blade Optics™ refers to NexOptic’s lens designs, algorithms and mechanics which vary from patented, patent-pending and includes all of the Company’s intellectual property and know-how.
NexOptic trades on the OTCQX under the symbol “NXOPF,” on the TSX Venture as “NXO,” on Frankfurt as “E301″ and Berlin as “E301.” More information is available at www.nexoptic.com.
On behalf of the Boards of Directors
NexOptic Technology Corp.
John Daugela, CEO & Director
Forward Looking Statements
This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws, including, but not limited to, statements with respect to expectations concerning the development of its technology, new products and designs, the potential applications of the Company’s technologies and its potential markets. The reader is cautioned that forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other factors which are difficult to predict and that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Forward-looking statements are based on the then current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry and markets in which the Company operates and are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations, including, among others: risks commonly associated with the development of new technologies, including that the Company’s technology is at an early stage and additional work will be required to confirm potential applications and feasibility of its technologies; the Company may not be able complete the prototypes and designs as currently expected; potential applications of the Company’s technology are based on limited studies and may not be representative of the broader market; the risk that prototypes and designs may not achieve expected results; the Company may not be able to commercialize its technology; the Company may not have access to necessary financing on acceptable terms or at all; and other risks inherent with the patent process, transactions of this type and the business of the Company. Such forward-looking statements should therefore be construed in light of such factors. Other than in accordance with its legal or regulatory obligations, the Company is not under any obligation and it expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.