Expounding on Domestic Supplier Agreement with Richman Chemical
In our shareholder call, we discussed our domestic supplier agreement with Richman Chemical.
‘’This week, we signed a supply agreement with Richman Chemical, which is headquartered outside Philadelphia. More importantly, we have a cooperative relationship with Richman Chemical, and we look forward to working with them on future CHS development, as well as other developments in the silicon arena.’’
I’ll expound further on the importance of this relationship for The Coretec Group. The pyrophoric nature of cyclohexasilane (CHS) requires unique shipping logistics. From European or other overseas manufacturers, CHS has to be shipped in a special container via boat. Once the shipment leaves the European port, the estimated shipping time to a US port is 6-8 weeks. As been reported in the news (https://www.cnbc.com/2021/10/25/economists-expect-shipping-problems-to-linger-well-into-2022.html and https://www.npr.org/2021/11/16/1055131668/shipping-container-demand-supply-chain-delay), the US ports are severely backlogged which adds more delays upon arrival. Working with a domestic supplier removes the significant overseas shipping and transportation delays.
Our domestic supplier will also be able to ship CHS to US customers and research partners as it is produced. Rather than waiting for the entire order to be completed, Richman will be able to ship individual samples to customers once each sample amount has been created. Richman Chemical is a great solution and a valued partner.
As an update on Richman’s progress, our project is the next one in their queue. Then, they will begin the production setup procedures to manufacture CHS. We will participate in this process. After the setup, production of CHS will begin immediately. The folks at Richman share our entrepreneurial spirit and have been highly cooperative and responsive. They are excited to work with us on other developments. We will keep you posted as progress continues to be made.
— Matthew Kappers, CEO