Zentek Ltd. Advances Fire‑Protection Technology with Exclusive US Licence
Zentek Ltd. (NASDAQ: ZTEK, TSX‑V: ZEN) has announced a significant milestone in its product portfolio: the development of a novel Graphite Gel‑Based Fire‑Retardant (GBFR) system and an exclusive commercialization agreement with Altek Advanced Materials Inc. for the United States market.
Product Innovation
The GBFR coating, branded by Altek as GraphGel, marries rapid gelation with intumescent graphite to form a robust thermal barrier. Applied at two loadings—0.3–0.4 cm and a higher concentration—Intertek will conduct independent ASTM E84 testing on ¼‑inch oriented strand board (OSB) panels to quantify fire‑suppression performance. Early reports suggest that GraphGel can arrest flame propagation within seconds, a capability that could prove decisive in protecting residential structures from wildfires, a growing concern across Canada and the western United States.
The formulation is bio‑friendly and removable after fire risk subsides, positioning the product as both effective and environmentally compliant. This aligns with Zentek’s broader strategy of leveraging its proprietary nano‑material technologies, originally derived from the Albaony deposit, to create high‑performance composites for the building‑materials sector.
Strategic Licensing Agreement
On November 4, 2025, Zentek entered into a conditional, exclusive rights agreement with Altek for U.S. commercialization. The deal grants Altek the license to market GraphGel under its own brand, while Zentek retains the ability to pursue domestic sales and to license the technology to other partners outside the United States. The collaboration underscores Zentek’s intent to expand its footprint beyond Canada, where it currently serves the entire domestic market, while maintaining a lean operational footprint.
Market Reception and Financial Context
The announcement arrives at a time when Zentek’s share price has hovered around CAD 1.09, following a recent 26.2 % drop in short interest in October. Despite a negative P/E ratio of –12.88 and a market capitalization of approximately CAD 120.97 million, analysts view the GBFR development as a potential catalyst for revenue diversification. The company’s debt‑to‑equity ratio of 0.12 and current ratio of 1.62 provide a modest liquidity cushion to support further R&D and commercialization initiatives.
Industry observers note that the GBFR technology could capture a niche yet expanding segment of the fire‑proofing market, particularly in regions prone to wildfires. By securing an exclusive U.S. license, Zentek positions itself to benefit from a high‑growth market while limiting direct competition from domestic manufacturers.
Forward Outlook
Zentek’s focus on nano‑material innovation and its strategic partnerships suggest a clear path toward expanding its commercial portfolio. The GBFR product, coupled with the Altek licensing agreement, represents a tangible step toward monetizing Zentek’s research capabilities beyond its current domestic customer base. Investors and analysts will likely monitor the progress of Intertek’s ASTM testing and the initial market uptake of GraphGel as key performance indicators for the company’s future trajectory.
