ASP Isotopes Inc. NASDAQ: ASPI ("ASPI,” or the “Company”), an
advanced materials company dedicated to the development of
technology and processes designed to produce isotopes used in
multiple industries, today released the following letter to
shareholders from its Chairman and CEO, Paul Mann.
Dear Fellow Shareholder,
At the end of the 3rd quarter, I want to summarize the
year-to-date progress and discuss our future goals. We have made
significant progress during the first nine months of 2023,
completing the construction of our first isotope enrichment plant
and signing two supply contracts with North American customers for
greater than $11.5 million in expected aggregate revenue for future
supply of Carbon-14 and other highly enriched isotopes. In
addition, we recently incorporated new subsidiaries in the United
States and the United Kingdom to focus on producing HALEU and
Lithium-6. These two isotopes are essential to meeting longer-term
global climate goals.
ASPI core technology - now proven commercially viable
and scalable.
Our accomplishments during the first nine months of 2023,
outlined above, have the potential to generate a substantial amount
of free cash flow for the company during 2024. The company plans to
use that cash flow to start the construction of additional plants
in 2024 for other isotopes. These additional plants will likely be
in a new location outside South Africa, benefiting from more
advantageous energy sources like Iceland. We are also in
discussions with commercial partners in the industrial gases sector
and quantum computing to build some of these additional
manufacturing facilities now that our aerodynamic separation
technology has been proven commercially viable and scalable. The
business model under discussion is based on a joint venture
structure whereby we would provide technology and expertise, and
our commercial partner would provide investment capital and receive
supply security at advantageous prices.
Creation of Quantum Leap Energy
Last week, we announced our strategy to enter the nuclear fuel
market with the formation of new U.S. and U.K subsidiaries called
Quantum Leap Energy (“QLE”) and a Memorandum of
Understanding with a leading global Small Modular Reactor
(“SMR”) Company. SMRs are widely viewed as the
future of nuclear power, providing many substantial benefits over
the nuclear power stations constructed in the past. Specifically,
SMRs will be smaller-sized reactors, allowing greater deployment
flexibility. They will be designed for production-line
manufacturing, requiring limited on-site preparation to
substantially reduce lengthy construction times and provide
considerably lower construction costs. The simplicity of the SMR
design, combined with enhanced safety features, should mean that
almost any citizen can have continuous access to environmentally
friendly, zero-carbon energy at a cost comparable to or potentially
lower than that provided by heavily polluting constant energy
sources such as coal and oil.
QLE addresses the worldwide shortage of
HALEU.
Most new SMRs require a new form of enriched uranium, called
HALEU (High Assay Low Enriched Uranium), which is up to 19.75% in
the U-235 isotope. Historically, nuclear reactors have used LEU
(Low Enriched Uranium), which is typically enriched by up to 5%.
Currently, there is no Western producer of HALEU, and the NEI
(Nuclear Energy Institute) estimates that there will be a global
demand of 3,000 metric tons by 2035. We are currently in
discussions with multiple SMR companies requiring HALEU, and they
have indicated a demand summating to approximately $30 billion
based on current market prices.
QLE is expected to develop proprietary laser-based
technology to achieve enrichment.
We expect to enrich uranium and lithium using our Quantum
Enrichment Process, a proprietary technique developed by our
scientists to enrich isotopes using lasers. We believe it is likely
the most cost-effective method of enriching heavy isotopes,
particularly those that do not lend themselves well to being
converted into a stable gas. We believe that, with time, we can
produce HALEU with a cost of production substantially below other
enrichers.
Our technology partnered with customer capital may be a
viable solution to the worldwide HALEU shortage.
Importantly for ASPI shareholders, our discussions with SMR
companies assume that there will be significant financial support
in the construction of HALEU production facilities. We expect that
QLE will be the majority shareholder in these facilities but will
be funded by a third-party, non-dilutive capital. The financial
model is expected to be similar to our strategy that we are
employing in non-nuclear isotopes (i.e., a joint venture based on
our technology coupled with partner capital). We also plan to work
with existing nuclear facilities to navigate the complex regulatory
framework and approval requirements.
ASPI and QLE are likely two separate
companies.
It is currently anticipated that the Company will consider plans
for a future spin-off of the QLE business to ASPI shareholders so
that our shareholders will then benefit from ownership in two
entities: ASP Isotopes Inc. and Quantum Leap Energy Inc – the first
being focused on isotopes for medical and technology, quantum
computing and non-nuclear energy technology (carbon-14,
molybdenum-100, silicon-28, zinc-68) and the second focused on
nuclear fuels for the future (HALEU and Lithium-6).
The rationale for this separation goes beyond the fact that each
company will employ different enrichment technologies. The
regulatory landscape and supply chain for nuclear fuel production
differs significantly from that of medical isotopes; hence, ASPI
and QLE will have different business models. Ultimately, QLE will
be independently managed and financed by ASPI. As outlined above,
we expect the majority of QLE's financial needs to be supplied by
its customers, either as an investment into the new entity or as
prepayments against future shipments. We anticipate that as both
entities develop, we will expand the senior management in both
companies.
The market for isotopes is at an inflection point from
both a demand and a supply perspective. We intend to position ASPI
and QLE as a trusted supplier of existing isotope products and
those of the future.
Isotopes have one of the most severely compromised supply chains
of any material in the world. Currently, supply is almost totally
controlled by Rosatom State Nuclear Energy Corporation, the Russian
state-owned entity headquartered in Moscow, and a handful of
state-owned or controlled enrichers. The United States Department
of Energy (DOE) and every other Western government identifies
isotopes as a critical material. Isotopes enable everyday
activities such as nuclear imaging, are essential in the production
of advanced electronics and semiconductors, and are required as
fuels and coolants in nuclear power stations, which provide
approximately 13% of electricity generated in the United States.
Global industrial production, electricity generation, and Western
defense capabilities remain susceptible to supply chain disruption
from geopolitically adverse counterparties. This is why we are
discussing our longer-term supply capabilities with so many
companies and governments. We hope to sign more supply agreements
for essential isotopes in the coming months.
If you want to learn more about our Company, please visit our
corporate website and follow us on our social media channels.
Thank you for your interest and support.
With best wishes,
Paul E. Mann
Chairman and Chief Executive Officer
About ASP Isotopes Inc.
ASP is an advanced materials company dedicated to developing
technology and processes to produce isotopes in multiple
industries. The Company employs proprietary technology, the
Aerodynamic Separation Process (“ASP technology”), for the
production, distribution, marketing, and sale of all isotopes. The
Company’s initial focus is on producing and commercializing highly
enriched isotopes for the healthcare and technology industries.
With time, it also plans to enrich isotopes for the green energy
sector. The Company has two isotope enrichment facilities in
Pretoria, South Africa. The first is a facility dedicated to the
enrichment of isotopes of elements with a low atomic mass (light
isotopes) and will initially produce Carbon-14. The ASP plans to
use the second, larger facility for the production of multiple
different isotopes.
There is a growing demand for isotopes such as Silicon-28, which
will enable quantum computing, and Molybdenum-100, Molybdenum-98,
Zinc-68, Ytterbium-176, and Nickel-64 for new, emerging healthcare
applications, as well as Chlorine-37, Lithium-6, and Uranium-235
for green energy applications. The ASP Technology (Aerodynamic
Separation Process) is ideal for enriching low and heavy atomic
mass molecules. For more information, please
visit www.aspisotopes.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are neither historical facts nor assurances of future
performance. Instead, they are based only on our current beliefs,
expectations, and assumptions regarding the future of our business,
future plans and strategies, projections, anticipated events and
trends, the economy and other future conditions. Forward-looking
statements can be identified by words such as “believes,” “plans,”
“anticipates,” “expects,” “estimates,” “projects,” “will,” “may,”
“might” and words of a similar nature. Examples of forward-looking
statements include, among others but are not limited to, statements
we make regarding expected operating results, such as future
revenues and prospects from the potential commercialization of
isotopes, future performance under contracts, and our strategies
for product development, engaging with potential customers, market
position, and financial results. Because forward-looking statements
relate to the future, they are subject to inherent uncertainties,
risks and changes in circumstances that are difficult to predict,
many of which are outside our control. Our actual results,
financial condition and events may differ materially from those
indicated in the forward-looking statements based upon a number of
factors. Forward-looking statements are not a guarantee of future
performance or developments. You are strongly cautioned that
reliance on any forward-looking statements involves known and
unknown risks and uncertainties. Therefore, you should not rely on
any of these forward-looking statements. There are many important
factors that could cause our actual results and financial condition
to differ materially from those indicated in the forward-looking
statements, including: our reliance on the efforts of third
parties; our ability to complete the proposed the construction and
commissioning of our enrichment plant(s) or to commercialize
isotopes using the ASP technology or the Quantum Enrichment
Process; our ability to obtain regulatory approvals for the
production and distribution of isotopes; the financial terms of any
current and future commercial arrangements; our ability to complete
certain transactions and realize anticipated benefits from
acquisitions; contracts, dependence on our Intellectual Property
(IP) rights, certain IP rights of third parties; and the
competitive nature of our industry. Any forward-looking statement
made by us in this press release is based only on information
currently available to us and speaks only as of the date on which
it is made. We undertake no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future developments or otherwise. This press release includes
market and industry data and forecasts that we obtained from
internal research, publicly available information and industry
publications and surveys. Industry publications and surveys
generally state that the information contained therein has been
obtained from sources believed to be reliable. Unless otherwise
noted, statements as to our potential market position relative to
other companies are approximated and based on third-party data and
internal analysis and estimates as of the date of this press
release. We have not independently verified this information, and
it could prove inaccurate. Industry and market data could be wrong
because of the method by which sources obtained their data and
because information cannot always be verified with certainty due to
the limits on the availability and reliability of raw data, the
voluntary nature of the data-gathering process and other
limitations and uncertainties. In addition, we do not know all of
the assumptions regarding general economic conditions or growth
that were used in preparing the information and forecasts from
sources cited herein. No information in this press release should
be interpreted as an indication of future success, revenues,
results of operation, or stock price. All forward-looking
statements herein are qualified by reference to the cautionary
statements set forth herein and should not be relied upon.
Contacts
Jason Assad– Investor
relationsEmail: Jassad@aspisotopes.comTelephone:
561-709-3043
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