International Zeolite and CoTec Holdings Announce Strategic Alliance

0:08 Hello everyone and welcome to Kotech Holdings Live Investment Summit today, hosted by 6. I'm pleased to introduce the President, CEO and Director of Kotech, Julian Traeger. And we're joined today also by International Zeolite's COO and President, Mark Perlman. Julian and Mark are gonna be discussing their latest shared news and answering some questions live. And I'd like to remind you as attendees that if you have any of those questions, please submit them using the Q&A chat found on the right-hand side of your screen at any time during today's call. As always, today's event is being recorded and it's going to be available on six.com in the coming days but Julian, Mark, I wanna get things over to you so we can get on the rails here. Feel free to take it away. Thank you very much, Cam. And thank you, everybody, both from the Zeolite side and from the Kotec side for joining Mark and I for our conversation this afternoon.

0:57 It's actually been a very big week for Kotec. The main event is clearly the collaboration with Zeolite, which we are going to go into some detail on shortly. But we also announced this week that our magnet recycling business, which can extract rare earths, has been given the go-ahead to build a plant in Germany with funding from the German government so that they can also in the EU start to generate a self-produced and recycled rare earths, which allows them some independence. And that bodes well for Kotech taking this technology to the US, which is our ultimate intention in a joint venture. So that was one piece of good news, but far larger and momentous was the announcement of our joint venture and collaboration with Zeolite.

1:55 From Kotex perspective, we generally look for disruptive revolutionary technologies, which can be scaled, which are gonna make a difference to the world, which really move the needle. But they also have to have a low carbon footprint and they really have to help the energy transition and help people generally. And in International Zealite, we have a company which ticks all of those boxes. We're extremely excited about it. We think that it can indeed transform the way in which we get our food, the amount of fertilizer that's required to do that.

2:41 And we really think that this is something which is going to be big news and something which can go global. So with that high level introduction, if that makes sense, Mark, I'll hand over to you, perhaps to explain to the audience a little bit more what Zeolite's all about. Yes, thanks, Julian. And likewise, International Zeolite, we're excited to be partnering with Kotech Holdings. We believe the collaboration between the 2 firms will allow us to go to market, commercialize in a rapid way. What I thought I'd do is share with the audience a little bit about what the problem statement is. And Cameron, if you wouldn't mind pulling up 4 slides, I'm gonna share 4 quick slides.

3:29 And then from there, what I'm gonna do is show an actual video of the performance of the grow medium. I mean, the world's changed. What hasn't changed is the old way for a long, long time in agriculture. What we've done is We've looked at what the problems are in the existing ways that agriculture grows things. If we look at fertilizer production, right now it's come to a point where it's really becoming unsustainable. Other than the fact that the price has gone up 300 to 400 percent, It's extremely wasteful, it's inefficient. half of the fertilizer that's actually put down in the ground never really gets used by the plants. Fertilizer production itself, it's a huge percent of the world's energy and natural gas to produce it. And then from an environmental standpoint, if we look at what fertilizer production does and when it gets put onto the ground, it creates significant leaching runoff. It's highly ineffective.

4:30 But the biggest impact is because of fertilizer production, there's huge greenhouse gas emissions made with it. So we have to have a new paradigm. We have to figure out how to change that. And we think that the solution is, instead of throwing fertilizer on the ground, let's go to more of a demand determined nutrient delivery system. And what we've done is we've put the ability through a proprietary process, we've put the ability to insert or embed all the macro and micronutrients directly into zeolites. And What's neat about zeolites, and because this is a proprietary process, we're able to load up 25% of the total cash and exchange capabilities of the zeolite. Typically, in a 1,000kg application of zeolite onto a ground, we only need 20 kilograms of fertilizer loaded into the zeolite.

5:26 We have been validating this for the last year, year and 0.5 in independent academic institutions and we found 3 things were as a result. The first thing we found is that yield significantly increases. Because the plant root itself is searching out the zeolite and there's this exchange, ionic exchange of nutrients, the plant grows a lot faster. In a lot of our trials of lettuce and basil and other crops, we're finding that we're getting anywhere from a decrease in crop time from 30% up to lettuce production, an actual decrease in yield and crop time of 50%. So, we're getting much quicker crops, which means from a grower's standpoint, they're able to grow more, higher ROI.

6:16 The second thing, which I think is becoming even more apparent and more important is the fact that because of the process of embedding zeolite and embedding nutrients directly into zeolites, we're actually lowering the total amount of fertilizer consumption that a grower needs anywhere from up to 80 to 90%. A lot of our validation studies were able to demonstrate that by only using embedding a small portion of the fertilizer, that process allows the grower to save anywhere from up to 80 to 90 percent, depending on crop. The third thing which I'm extremely excited about, and I know Julian your company's vision is all about greenhouse gas reduction, if we can have growers transform and use this demand approach to growing, they can significantly reduce the amount of fertilizers that they're using, which means that the greenhouse gas emissions that are made from the production of fertilizers significantly reduced. But more importantly, is our process requires less fuel by the grower to go out every day and start putting out soluble fertilizers. So from a grower's standpoint, it's an easy decision.

7:27 It's profitable. Mark, at a time when people are very conscious about national security of supply with the war in the Ukraine, which has really upended the whole fertilizer sector, this will help to make countries much more self-sufficient because they won't rely as much on imports for fertilizers. That's absolutely correct. And as a matter of fact, one of the challenges that growers are having, not just in North America, but you have to think about some of the other developing countries is even having access to fertilizer, whether it's the raw inputs to make fertilizer are really hard to get. So, you know, when you look at what the UN is saying is we have to feed, we have to grow 70% more because of population growth, food security becomes a huge issue. And so the ability to grow more when there's less fertilizer is a huge opportunity and we think we can address that.

8:25 The other thing I think we can address too is the impact to growers in North America. When we were meeting with Julie, and this will be of interest to you, when we were meeting some of the large commercial growers that are selling into the mass retail market, these retailers are turning to the growers and saying, what are you doing to contribute to lowering greenhouse gas emissions? It's no longer about we want your product, we want the best quality tasting product we wanted quickly. It's what is your contribution as a grower to lowering greenhouse gases? And a lot of the growers that we've been working with are looking at this and saying this is the solution to that type of problem. Let me talk about the yield for a second because what you're seeing here is a quick graph on an actual validation study that we conducted at both Vineland Institute of Research in Ontario and we reconducted the same validation study at another research and innovation center called Niagara College and we're proud partners with them. We have an ongoing partnership with Niagara College to do all our validation studies.

9:34 The challenge we have with this, Julian, is people go, it's too good to be true. And so the only way that we've been able to demonstrate why it's too good to be true is to show them the science. In other words, have an independent research innovation center come out and say, this is what we have found. Yeah. And that external validation, Mark, is very important because, you know, it's clearly objective and it is a tick that, you know, what the claims that are being made are really real. Yeah, and I would say that growers are very sensitive to their soil too, right? And it's one thing to turn to a grower and say, we, we would like you to try this process, but a grower wants to know what's the impact to my soil, right?

10:20 What's the impact to my existing equipment in terms of how we grow? And so during these validation studies, it hasn't been just about validating that this does what it says it does. It's been about how do we apply this so it doesn't impact how a grower grows today. We want the grower to use the same equipment that they're using today. We don't want them to change their equipment. What we want to do is we want to help the grower improve their soil conditions. I mean zeolite by itself, in addition to being able to embed the nutrients we're embedding it to, zeolite by itself has the capacity to hold 40% of its weight in water. So from a soil standpoint, it's already as a soil amendment, it helps improve the soil. Growers are very sensitive to soil. And we've been very sensitive to understand what does this mean for the grower.

11:09 In this slide here, what we did is we tested both basil and lettuce using conventional ways that growers grow. In this case, these are greenhouse validation studies. So what the grower is doing is using what's called an oasis cube and then they're adding soluble fertilizer. Generally speaking, it takes anywhere from about 30 to 32 days to actually have a crop cycle. What we did is we grew the exact same way growers grow today and then we also along that same side is we used only 25% Nerea with a medium and here was the results. The results came back showing that we're able to reduce that crop from not from 30 days but to 22 to 23 days.

11:58 What that meant in the case of basil, and we repeated this study, is that that grower can have a 33% yield increase. We then looked at and we said, okay, what is that grower getting for that tray? Right? On average and conventional grow methods are getting anywhere on today's dollars, $445 to $475. Replacing the way they're growing, they now are getting anywhere from $593 to $628. What we don't demonstrate in this slide here is they're doing it at a lower input cost. So, in other words, they're reducing their total fertilizer costs by in this particular case by over 85%. And Mark, worth for those viewing to explain that Nouria is a product which zeolite produces from zeolite with a proprietary process. It's a sort of secret source which transforms this raw material into a processed product which is very, very effective with fertilizer and is unique to your company?

13:03 Yes, yes it is proprietary and we do use, we do embed through a proprietary method all the macro and micronutrients needed and that's the key to the proprietary process, it's never been done before right, It's to be able to get a zeolite to take all of the nutrients, both macro and micro, and embed it into 25% of its capability, of the zeolite's capability, and then have the zeolite use its cash and exchange capacity. This is the ability for the zeolite to ionically give the plant root what it needs on demand, and that is the whole proprietary process. Yeah, which is so impressive, and I mean, it's so efficient, because the plants get what they need and they don't waste the fertilizer in the way that it is normally done. Yeah, well, The challenge with traditional fertilizers, Julian, go back to what we showed in that first slide. They're subject to leaching.

14:08 The other damages they do to soil based on concentration. So in a lot of cases, the plant could be getting a lot more of a specific fertilizer than it needs. And so that's wasteful. And there are other nutrient challenges with the way growers are growing today. There are competing technologies. There's slow-leave for fertilizers, for example, but the challenge with those is through prilling and coating. Now you're dealing with soil contaminants. This is a very clean growing process. Once the Zeolite is finished, it can be left in the ground because it's actually helping the soil. It holds the water and it helps supplement the soil. It's just a win-win for the grower in all ways.

14:57 I'm going to go to the next slide. Cameron, if you wouldn't mind, I'm going to now just show a demonstration because sometimes seeing is believing. What you're going to see in the video before we play it is I'm just going to kind of give some background on it. This is the validation study that we did or one of the validation studies that we did in the greenhouse, demonstrating 21 days using conventional grow methodologies for lettuce. And then right next to it, using only 25% Nerea in a grow medium. And so I'm gonna go ahead and play that. This is the Oasis controls, seeded, same time.

15:47 See, standard oasis cubes. Maria, same time. Pretty profound impact on lettuce production, that's for sure. Pretty profound. The gentleman that's doing this was the lead researcher at Niagara College and when I first met him about, I would say, a year and a year and 0.75 ago, and I started talking about this, his comment to me was, we don't think this will do this. And then a year and 0.75 later, his last statement was, it's pretty profound. And that's just it, Julian, this is pretty profound. It's a transformational way of bringing this to market.

16:35 So that's something that we're very excited about. And we also have a pathway for Kotech over time to become a significant shareholder in international zeolite. And one other interesting aspect about the company is it actually mines the zeolite material. So for a new technology, it is a business which already has considerable revenues. And as we own more of it, we will be able to account for that. Investment is still subject to certain due diligence conditions. So the transaction will not close till next year. And, in fact, Zeolite is having a shareholders meeting in the latter part of January to approve the transaction. But we think that this collaboration between us has a lot of mileage.

17:33 We can help the company with regards to it's a global network. We can introduce them to large agri-tech and agricultural entities around the world. And we've been working very well together already over the past sort of month or 2, discussing the opportunities and challenges that the business has. One of the exciting things about this is obviously it's not at laboratory level, it's way beyond that. Yeah. You know, real life examples and very quickly the company plans to open a pilot plant in Canada. Maybe Mark, you could talk a little bit about your vision as to how you plan to roll this out. Yeah.

18:27 We've adopted what we call diffused adoption methodology. So our plan is we will have by March 31st, our pilot plan up and running in Niagara, Ontario. Why Niagara, Ontario? Number 1, it's very close to the US market, but it's also very close to Niagara College. And we have announced a long-term partnership for research innovation with Niagara College. And so what they're doing is they're providing this research students and we're continuing to develop products. The concept from driving adoption is very straightforward in my mind. It is we're going to start producing this in smaller batches by starting in March. And we've working with 4 or 5 large scale commercial growers. We've asked them to start using it on a part of their crops and working closely with them. So the cycle of understanding the go-to-market on this is once those growers come back to us and say, yeah, we really like it, or yes, we're prepared to now adopt this, we believe that will create a more of a hockey stick approach. And so it's not so much international zeolite that will be promoting it, we believe that the growers need to promote it. We believe that this is a grower thing, it's not an international zeolite thing. Background with regards to regulation for the reduction of carbon footprints in the agricultural sector I understand in Canada.

19:55 Yeah so it's interesting because growers are under tremendous pressure there the existing federal government has mandated a 30% reduction in greenhouse gases, specifically in the agricultural sector. So there's significant pressure on the grower, and only the growers being told you got to feed more, you got to grow more, if you can get fertilizer, but we're asking you to reduce the amount of fertilizer. So I mean, it's just like right now, and it goes to my opening statement, that is the world's changed, right? Zeolites aren't new. They've been around for a long time. They've been used as soil amendment. But I would say International Zeolite is extremely well positioned because there'll be a demand for zeolites, not just an amendment. And now we've developed through a proprietary process a way to add a value add product into zeolite. And we think that with that, because we're already rebranded our international ZO Light as a green tech ag tech company, that we're going to be extremely well positioned and especially with a proprietary product that we're going to market. So it's just the perfect storm for getting this out to market.

21:06 Good, well, I think that that's a good summary for our viewers. Maybe we should open the floor up, unless there's anything else you want to add, Mark? Well, just again, I think it's really important to understand that when we announced, one of the key things we announced wasn't just about the investment that Kotec Holdings provide to us. And I think it's really important to talk about that the term we used was strategic alliance. And you've touched on that a bit, Julian, but I would tell you, even during our due diligence process, when you brought on board senior leaders in greenhouse gas emission leadership, now you've got senior leaders in the ag tech stuff that are working with us to validate and make sure that we're doing. We're learning from them. They're asking questions. We're answering these questions.

21:54 But what we're getting from that alliance is we're getting the understanding that these same questions that we're asking are going to be asked by other growers too. So just even the benefits from our alliance just in the due diligence process has been brilliant but also we're looking forward to, as you alluded to, is using your network, your global network in Europe to bring this to market. It's going to take a larger organization to do that. So we're at International Zeolite Corporation, we're excited to be working with you. It wasn't just about the investment, it was finding the right partner to invest with. So I think that's key to our success. Yeah, no, no. And we're excited too. I think we share a similar vision that we can make good returns and help a lot of people.

22:41 Yeah. So happy to take questions or Julian, I'm sure a lot of these questions will be aimed at you, I hope. So, we have a lot of questions. Yeah. And just as a reminder to everyone in the audience, if you do have questions, you can ask them using the Q&A chat found on the right-hand side of your screen. But gentlemen, let's dive in. Donna has a question. What would be considered the major barriers to adoption of this apparently hugely disruptive technology regarding supply, validation, et cetera? So we thought at first the biggest barrier would be the time it would take to get it registered. All products of this nature have to be registered with what's referred to as the Canadian Food Inspection Agency. What we subsequently have determined and we've researched early on is that because we're using zeolite, it's already exempt from registration. And because we're using registered fertilizers, we no longer need to register it. So that was the big win for us early on.

23:41 I think this is an adoption question, right? And What I alluded to is we believe the way to drive adoption of this is to get growers using it. So we're approaching some of the larger, more innovative growers, and I won't give their names here, but we've found 4 or 6 major commercial growers that have said to us, as soon as you're in production, we want to start using it. We believe let them drive the adoption and they'll help us remove barriers. The other thing is, and in fairness, this is a slower change management issue, right? Growers as a group of people do not adopt to change very well. They're very protective of their soil, but once they understand what we have here and they understand that this is nature's nanotechnology, it's not a made thing, right? I think they will adopt pretty rapidly.

24:32 Thanks, Cameron. No worries. Jason has a question about the long-term. Who are the potential acquirers of international zeolite? You know, whatever your ability to share this information might be. The material of the company. It's not clear. I mean, I think, you know, obviously the material is available to almost any form of agriculture. I mean, it can be used for greenhouses, it can be used for, you know, inside, outside. It has very wide applicability. And you know, I think in terms of how the business has exited, that's super premature.

25:20 We've really got to scale the business. I think it's got enormous potential. Yeah, I'll add to that. I mean, I'm old school. I believe in driving revenues and foundations and that's foundational revenues will help drive the share value, right? And so I'm always looking at the fact that we have a product that's beyond pre-commercialization. We know that rapid adoption is targeting a very specific segment. So for example, we know the biggest value for this, the early adopters are gonna be in the nursery side of things. And so when we go to market starting in March, right, we'll be attracting primarily nurseries. Then what we're gonna do is we're developing form and function. So a lot of agriculture is moving into what's called controlled environmental agriculture. And this is where they're using what's called cubes and plugs in their automation.

26:15 And so what we're doing is we're continuing a lot of our research and development and developing new products that will incorporate Noreana. So we have a very scalable plan to drive scalability and adoption. Cool. Paul wants to know, with an increased frequency of crops, won't that just increase surplus in the market many times and therefore depress the selling price per unit? That's a solid question. And I appreciate the question. I think the demand for production, farm production, I mean if we go back to a food security side of this is right now There's more demand for food than there is availability of food in particular.

27:06 And I think this will not necessarily depress pricing. What this will do is it will allow for better quality food to get out, and I think it will stabilize. I think what it does do, which is really important, is it lowers the cost of production. So ultimately the consumer, the end user of the food is going to benefit from it. And I believe that is one of our mission statements, is to make food more available, healthy, nutritionalist food more available to people. So instead, right now, romaine, for example, is a huge issue, right? You can't even get romaine, right? If we can address some of the issues with specific crops, I think it just makes that food more available. It will lower the price to the consumer, and that's to me what's important. I don't think it will impact demand or supply.

27:57 Fair enough. John says this, Okay, let's assume that there's a large and a significant adoption, you know, whether we're talking about North American or we're talking global, is there sufficient supply of zeolite to meet that sort of demand? So I'll take that. So we have very early on is we have identified there is a supply, there is enough supply of Zeolite both in North America to deal with demand out to 12-years and we've been working with our suppliers to deal with that. This is a very specific type of Zeolite. International Zeolite has 2 of its own claims. We have a facility, a mine out in Bromley Creek, and we have another one called the Sun Group, which has a significant amount of the right type of zeolite.

28:44 We've also identified where the zeolite is around the world. And whether it's, because we're going beyond North America here, we have to be able to deal with zeolite out of Europe, out of Asia. So we've done a lot of work around identifying how much supply there is, and there's significant supply of the raw zeolite material. And we're moving quickly to tie that up for our processing in due course. Yeah, absolutely. Question coming in, does the zeolite run through a kiln first and then get sprayed through a kiln again? So with respect to the proprietary process that we use to cure or embed the macro and micronutrients, I'm not going to say a lot about it except that we've refined it and we've proven that it works. And I'll just leave it at that.

29:38 No, fair enough. Rita in the audience says that zeolite is a popular supplement in US and international health food industry to detox heavy metals. Is there any potential for expansion into that space? So here's the challenge. Zeolite solves for a lot of problems. The example I'll give you, international zeolite right now is driving revenues in its eco-division, what's called Earth Innovations, its eco-division products. And so right now we are selling significant amount of zeolite mesh, which means in particle size as a salt replacement, right? It's a natural salt replacement, it's alive, doesn't cause any damage to the roads. And then at the end of the season, you just move it over into your gardens. And so we're working with municipalities to adopt it, ski resorts to adopt it.

30:27 And so the challenge we have is in the health side of it. We know that, for example, you can go on Amazon and you can get micronized zeolite, which cancer patients have been taking themselves, because what happens is the zeolite attracts a lot of the toxic materials in the body and it absorbs them. Are we gonna go into that space? The scientists that we're working at have a lot of different applications. Water filtration is a huge one, right? For example, what we're trying to do is we're trying to, and Julian will agree with this. When we first met with Julian, and we started showing them all the different revenue areas, you know, artificial turf, water filtration, composting, animal feeds, another one, which is brilliant, what it does for animal feed, just 2% of it, is we really took a look at this and said that we need to be very focused on what we're trying to do because you can spread yourself too thin. We believe that the most biggest urgency right now, and I'll let you answer that Julian, is in the ag tech side.

31:30 I think that's true. I mean, there's lots of applications. It's super exciting and Kotech will have the opportunity to work with Zeolite on these other applications. But for the moment, this is an enormous market and that's the first one we wanna really crack. Yeah, That's a great question. Thank you for the question. Awesome to hear. And great answers. But Andrew wants to, you know, he says, you know, not to feed too much here, but could you comment on the product as a single product versus a spectrum of products with broad applicability? I think it's the same as the previous question. I mean, there are many products with applicability, but we want to focus on this one as the one which has got the greatest potential right here and now, partly because of the war.

32:18 Yeah, let me talk specifically to, from a growth standpoint, that there's a series of products, right? There is what's referred to as the substrate product. There's a fertilizer product, and then there's a foliage product, right? So this is a growth system. So at different points in the crop production, you use a different product. For example, the substrate is put in and tilled into the soil. That allows a plant to germinate. Once the plant's germinated, we then would recommend to the grower to use our Nerea fertilizer. And then that's different applicability in terms of the amount of fertilizer that's embedded into it. Once you have a large outdoor grow, right, then what you can do is exactly what growers do now, is you go out instead of once a month you're using soluble, you maybe just go out a couple times over 0.25 and you spray a micronized zeolite solution that allows it to land on the plant's leaves and to grow it. Depends on the crop, but from a commercialization standpoint, we're focused on 3 key products right now that we've developed and are ready to be commercialized.

33:27 There are, other than the loop I alluded to, controlled environmental agriculture. Right now we are looking at, and we've already developed plugs and cubes, and that's used more in the greenhouse production because you can't have loose particles in a highly automated greenhouse environment. So that's a key for us too. But in terms of go to market approach, our go to market approach again is going to be here. We have 3 key products. We're going to hit the nurseries, we're going to hit horticulture, we're going to hit certain crop types that we know that we've validated and tested and then expand from there. I hope that answers it for them, Cameron. Yeah, absolutely. Farai wants to know if there are any switching costs, you know, for any, you know, CapEx, et cetera, even for a farmer who moves from traditional fertilizer to this.

34:17 So, and that's a great question. I thank you. One of the things that we wanted to solve for during this is if you look at, again, I'm going to take you the example of an outdoor grower. An outdoor grower, for example, uses a, when they go out and they're using either a dry fertilizer or soluble fertilizer they have specific equipment that's adopted to that type of fertilizer and the investment of this equipment is huge anywhere from 1 million to million 5 depending on which types of equipment they're using. What we've done in our validation studies is we've acknowledged that our mission statement is to make sure that the grower does not have to change their existing methodology or their equipment that they're using. So for example, one of the concerns may be, well, are we going to consistently lay down particles on the ground and what does that do from tilling the soil? We may suggest to that grower, do not change your equipment. Instead of using particles as your fertilizer substrate, use your foliage. And these are the things that we're looking at to sure. But our mission, because we know our biggest, one of our biggest challenges is we do not want to move away from the investment that growers are already made. So we want the grower to use the exact same equipment that they use today.

35:31 Thank you. That's a great question. Thank you, Mark. This is a question for Clarity directed to you, Julian. But does the bridge loan happen regardless of the finalization on a private placement? And John is really driving at, what formal commitments are locked in as of today from Kotech? I think he is correct at the moment, the bridge loans happen regardless. If we don't go ahead with our investment, those bridge loans are repayable, I think in 24 months. But obviously the hope is following the remainder of the due diligence, that the whole transaction moves ahead as planned. Great, thank you for that. I think this question is for you, Mark, but is Nira in a pre-commercialized state or is it ready to be commercialized?

36:20 So it is ready to be commercialized. There are other product lines that we are still in a pre-commercialization state. The example I give you is the plugs and the cubes. And that's a very large segment, a growing segment of agriculture. But this is not sitting in the lab, this product's ready to go, it's been proven. We haven't done anything with it except validate, validate and validate over the last 2 years. And let me give you an example that shows you kind of the thinking. It wasn't just about how does the product perform, but what's the impact of using zeolite particles on, say, the horticulture, the flower sites, when they are putting the pots inside a truck? Does it now increase the weight of the tray in such a way that we can't get it off the truck? And so we've been doing a lot of validation studies in terms of what is the impact of this system on the grower's ability to go to market? It's not just our ability to go to market, but we wanted to make sure that the grower has no impact on their ability to go to market. So the short answer is we are commercialized, but there is a number of products and research that we continue to do that will refine new products based on segment that we're going into in agriculture.

37:37 So yes and no. Fair enough. And that actually, you're ending there, ties in nicely with this next question, but are there different products that make up the NuraGro system? Yes, yes and so I've alluded to quite a few of them and the 3 that we have commercialized that we've validated, well let me focus, let me try that again. We have placed most of our validation efforts on what's called Nerea substrate. The only differential between different product types is the amount of fertilizer that's actually embedded, the strength of the fertilizer. This also can be a custom blend. And the example I'll give you is tomatoes may need more calcium for example or high value products.

38:24 Without going into it, we've been testing on a lot of high value products that are important in the Canadian market but there are other markets, for example, we've been doing validation studies on rice, we've been doing, depending on the market's availability. The core 3 products we have now are the substrate, the fertilizer and the foliage. There are a lot of other products that are under development in what we call pre-commercialization that we are still working to develop, but also looking to validate. Once developed, then we have to validate. And so that's a cycle that we're taking. Fair enough. And Mark, I mean, you've talked throughout today about, you know, the grower soil and how important that is to you. Just want to make sure that you're able to cover everything that you want to. But this question is, does Mira cause any negative impact to the grower soil?

39:15 No, as a matter of fact, it's a positive. Number 1, for example, Zeolite by itself retains about 40% of its weight in water, which means that when left in the soil, if used in particle form, it actually nourishes that soil. It creates better balance for soil, leading to just better soil. You don't have clumpy soil. So we've done a significant amount of research and development to say, what is the impact to the soil. I've alluded to this very early on in the conversation that what's been important to us is we've put our grower hats on. We haven't put on our Nerea wholesale hats. What we've tried to do and everything we've tried to do is we've tried to think of ourselves as a grower.

40:03 We've also alluded to what we're learning is the growers' concerns aren't so much about growing. What they're concerned now with the pressures the growers are having is how can we do it at a lower cost because our costs have gone through the roof. But the growers are coming back to us and saying, we are being told that we have to from our own people that we sell to is we have to contribute to greenhouse gas reduction. And so when they see what this does through reduction of fertilizer use, they're going, we need to start working with you on this. And that's what we're focused on. But the soil impact is positive, not negative. It's positive. Bottom line. Positive. Yeah. Completely positive. Awesome. Next question. What's the timeframe look like from pilot plant to full commercialisation?

40:51 We want to be up and live. We want to hit the spring growth season. That's our mission statement. Our pilot plant, I've put a line in the sand that says we need to have all the equipment, all the technology in play and be ready to start production by March 1st. I'm sure my production lead is going, it will happen, but we know exactly what the design of that plant is, we know where to get the equipment. So as a matter of fact, we've got all our leasing arrangements in place and we're prepared. So we're confident that we will be in production by March 1st. We'll have our first, a month later, we'll have enough production product in order to get it out to the growers to hit their spring growth season. So that's the plan.

41:42 Awesome. Well Mark, Julian, this has been a really really interesting presentation and conversation you guys and an awesome Q&A as well. That looks like all the questions you received for today at this point though. So before we wrap up, I wanna pass things back to you guys, just any closing remarks that you might like to leave the attendees with. Well, I hope everybody has understood through this conversation how important this technology is and how excited we are about it and the enormous potential it has to really make a difference on a number of fronts. And we look very much forward to 2023, the power plant up and running and the sales starting and the commercialization and adoption, and that's gonna be a big year for Zeolite. But thank you all for your time. Mark, do you wanna add anything? Yeah, maybe Julian, first of thanks to to Cotech Holdings for hosting this call to begin with. I would also like to maybe go back to the very first message that I brought to you and that is the world is changing. What hasn't changed is the fact that zeolites have been around for a long time, which means international zeolite right now is extremely well positioned to bring zeolite and the value added products of Nerea to market. We're excited about that. We're extremely excited to be working with KOTAK, and we look forward to getting this to market in 2023.

43:06 Thank you, Gay and Cameron, for your team and their efforts to pull this together. Thanks, Cameron. Julian, Mark, I want to also thank you, of course, for coming on today and having such a great conversation, great summit. I also want to thank everyone in the audience that's come in, especially those who have asked questions. But with that, gentlemen, we will be wrapping up. I hope you