Message from Nanotech’s
new CEO, Troy Bullock

January 14, 2019

Dear Customers and Shareholders,

I wanted to let you know how excited I am to lead Nanotech into the new year and to share with you why I joined the Company and where I see us heading.  Like many, it was the beauty and impact of KolourOptikTM that immediately attracted me.  When I put KolourOptik into the context of the evolution of printing technology, I immediately recognized KolourOptik’s immense potential and wanted to become part of Nanotech’s team.  Here’s why.

Consider two major innovations in the history of mass printing: the invention of the moveable type press in 1452 and the introduction of colour lithography in the 19th century.  The printing press enabled en masse advertising on documents and packaging.  After centuries of black and white, the introduction of colour lithography further revolutionized the way companies marketed their brands and packaged their products. These inventions also transformed the way brands and products were perceived by customers.

Print History

Print History – Image Source

Colour printing coincided with the rise of the mass-market brand.  In 1855 Bass & Company began printing its red triangle brand on beer bottle labels.  Other companies such as Quaker Mill Co., the Coca-Cola Company and the Campbell Soup Company quickly followed.  The full colour Quaker Man was a huge factor in popularizing the Quaker Oats brand.  Imagine what the effect must have been of a colour package in a black and white world.

Generic Packaging

Generic Packaging – Image Source

KolourOptik Technology
KolourOptik could facilitate the next stage of mass-marketing and customer brand perception.  Today, it is increasingly difficult for brands to not only differentiate their products from competitors but also to ensure the authenticity of real versus counterfeit products.  This is where Nanotech could disrupt marketing and branding.  I believe our KolourOptik technology has the potential to revolutionize the print and packaging world once again by allowing never-before-seen images that capture the imagination while increasing security and differentiating brands.

The effect of branding a package or product with KolourOptik is like comparing a Technicolour movie with black and white movies or even static photographs.  Nanotech’s KolourOptik technology can bring movement to images, paving a new direction for the future of print and packaging.

KolourOptik’s versatility facilitates better and/or more cost-effective imagery.  It can displace existing technologies such as holograms, giving Nanotech the potential to disrupt several print-and-packaging based industries, including: banknotes, consumer products, luxury goods, pharmaceuticals, automotive parts, and manufacturing.  By introducing moving and 3D images, KolourOptik can transform the way companies market their brands and products to consumers.

Security in KolourOptik
We have chosen our lead market to be banknote security features.  Authentication is of the utmost importance in this industry as the physical product, a banknote, has no intrinsic value other than its authenticity.  It is interesting to note that colour printing for banknotes is more than two centuries old, and traditional security features like holograms are more than four decades old.  Banknote designers need new technologies to stay ahead of counterfeiters.  Large, beautiful, elegant banknote designs that double as security features are now often reduced to simple geometric shapes and embedded strips so narrow that only the very discerning observer can see them.   

We believe Nanotech’s KolourOptik technology will open significant opportunities to deploy striking security features that are both recognizable and beautiful.

Continental note from 1779

We also see significant opportunities to sell KolourOptik as an upgrade to traditional holograms in authenticating security documents and commercial products.  We not only have aesthetic and functional advantages over legacy technologies but also cost advantages.  As we scale KolourOptik, we should be able to reduce both production costs and the cost of customer acquisition. 

KolourOptik – From Authentication to Consumer Product Branding
KolourOptik presents many exciting opportunities to enhance the appeal and security of consumer products through the use of scintillating colours and moving images.  KolourOptik opens a completely new frontier in branding by giving corporations the ability to brand their designs employing a unique combination of colour, 3-D imagery and motion.  Our customers will have a compelling new way to differentiate themselves from competitors by distinguishing what their brand does through motion in addition to how it looks through its colour palette.

Nano-optic technology forms the basis of everything we do.  We are able to mass produce a surface applied image employing an inexpensive mass printing method that manipulates wavelengths of light.  Our nanostructures also open up a range of exciting applications in Ethical Packaging and even Zero Packaging.  We create colour and motion using only physical structures – no toxic inks or dyes.  We can emboss our nanostructures directly onto products, enabling branding, authentication and visual design without the need for today’s excessive packaging.

Once we transform the branding and authentication industries, we’ll demonstrate and commercialize additional applications for our technology.  If you think embedding digital video on a banknote, pill or a pill package is impressive, just wait until you see what we do next. 

In Closing
Kipling said, “If you can dream—and not make dreams your master… Yours is the earth and everything that’s in it.”  We have a shared vision here at Nanotech.  We know a successful quest is made up of many little steps.  My job is to implement that vision with practical action and rigorous execution.  We must ensure that we take those little steps in the right order to reach our goal.  I thank you all for your trust in me.  I look forward to delivering products that attract, delight, reassure and ultimately change how people view the printed world.

Thank you for all the encouragement and support I have received since taking office. 

Troy Bullock

President and Chief Executive Officer