Tag Archives: Bank of Canada

Quantum Mechanics & Gravity conference (August 15 – 19, 2022) launches Vancouver (Canada)-based Quantum Gravity Institute and more

I received (via email) a July 21, 2022 news release about the launch of a quantum science initiative in Vancouver (BTW, I have more about the Canadian quantum scene later in this post),

World’s top physicists unite to tackle one of Science’s greatest
mysteries


Vancouver-based Quantum Gravity Society leads international quest to
discover Theory of Quantum Gravity

Vancouver, B.C. (July 21, 2022): More than two dozen of the world’s
top physicists, including three Nobel Prize winners, will gather in
Vancouver this August for a Quantum Gravity Conference that will host
the launch a Vancouver-based Quantum Gravity Institute (QGI) and a
new global research collaboration that could significantly advance our
understanding of physics and gravity and profoundly change the world as
we know it.

For roughly 100 years, the world’s understanding of physics has been
based on Albert Einstein’s General Theory of Relativity (GR), which
explored the theory of space, time and gravity, and quantum mechanics
(QM), which focuses on the behaviour of matter and light on the atomic
and subatomic scale. GR has given us a deep understanding of the cosmos,
leading to space travel and technology like atomic clocks, which govern
global GPS systems. QM is responsible for most of the equipment that
runs our world today, including the electronics, lasers, computers, cell
phones, plastics, and other technologies that support modern
transportation, communications, medicine, agriculture, energy systems
and more.

While each theory has led to countless scientific breakthroughs, in many
cases, they are incompatible and seemingly contradictory. Discovering a
unifying connection between these two fundamental theories, the elusive
Theory of Quantum Gravity, could provide the world with a deeper
understanding of time, gravity and matter and how to potentially control
them. It could also lead to new technologies that would affect most
aspects of daily life, including how we communicate, grow food, deliver
health care, transport people and goods, and produce energy.

“Discovering the Theory of Quantum Gravity could lead to the
possibility of time travel, new quantum devices, or even massive new
energy resources that produce clean energy and help us address climate
change,” said Philip Stamp, Professor, Department of Physics and
Astronomy, University of British Columbia, and Visiting Associate in
Theoretical Astrophysics at Caltech [California Institute of Technology]. “The potential long-term ramifications of this discovery are so incredible that life on earth 100
years from now could look as miraculous to us now as today’s
technology would have seemed to people living 100 years ago.”

The new Quantum Gravity Institute and the conference were founded by the
Quantum Gravity Society, which was created in 2022 by a group of
Canadian technology, business and community leaders, and leading
physicists. Among its goals are to advance the science of physics and
facilitate research on the Theory of Quantum Gravity through initiatives
such as the conference and assembling the world’s leading archive of
scientific papers and lectures associated with the attempts to reconcile
these two theories over the past century.

Attending the Quantum Gravity Conference in Vancouver (August 15-19 [2022])
will be two dozen of the world’s top physicists, including Nobel
Laureates Kip Thorne, Jim Peebles and Sir Roger Penrose, as well as
physicists Baron Martin Rees, Markus Aspelmeyer, Viatcheslav Mukhanov
and Paul Steinhardt. On Wednesday, August 17, the conference will be
open to the public, providing them with a once-in-a-lifetime opportunity
to attend keynote addresses from the world’s pre-eminent physicists.
… A noon-hour discussion on the importance of the
research will be delivered by Kip Thorne, the former Feynman Professor
of physics at Caltech. Thorne is well known for his popular books, and
for developing the original idea for the 2014 film “Interstellar.” He
was also crucial to the development of the book “Contact” by Carl Sagan,
which was also made into a motion picture.

“We look forward to welcoming many of the world’s brightest minds to
Vancouver for our first Quantum Gravity Conference,” said Frank
Giustra, CEO Fiore Group and Co-Founder, Quantum Gravity Society. “One
of the goals of our Society will be to establish Vancouver as a
supportive home base for research and facilitate the scientific
collaboration that will be required to unlock this mystery that has
eluded some of the world’s most brilliant physicists for so long.”

“The format is key,” explains Terry Hui, UC Berkley Physics alumnus
and Co-Founder, Quantum Gravity Society [and CEO of Concord Pacific].
“Like the Solvay Conference nearly 100 years ago, the Quantum Gravity
Conference will bring top scientists together in salon-style gatherings. The
relaxed evening format following the conference will reduce barriers and
allow these great minds to freely exchange ideas. I hope this will help accelerate
the solution of this hundred-year bottleneck between theories relatively
soon.”

“As amazing as our journey of scientific discovery has been over the
past century, we still have so much to learn about how the universe
works on a macro, atomic and subatomic level,” added Paul Lee,
Managing Partner, Vanedge Capital, and Co-Founder, Quantum Gravity
Society. “New experiments and observations capable of advancing work
on this scientific challenge are becoming increasingly possible in
today’s physics labs and using new astronomical tools. The Quantum
Gravity Society looks forward to leveraging that growing technical
capacity with joint theory and experimental work that harnesses the
collective expertise of the world’s great physicists.”

About Quantum Gravity Society

Quantum Gravity Society was founded in Vancouver, Canada in 2020 by a
group of Canadian business, technology and community leaders, and
leading international physicists. The Society’s founding members
include Frank Giustra (Fiore Group), Terry Hui (Concord Pacific), Paul
Lee and Moe Kermani (Vanedge Capital) and Markus Frind (Frind Estate
Winery), along with renowned physicists Abhay Ashtekar, Sir Roger
Penrose, Philip Stamp, Bill Unruh and Birgitta Whaley. For more
information, visit Quantum Gravity Society.

About the Quantum Gravity Conference (Vancouver 2022)


The inaugural Quantum Gravity Conference (August 15-19 [2022]) is presented by
Quantum Gravity Society, Fiore Group, Vanedge Capital, Concord Pacific,
The Westin Bayshore, Vancouver and Frind Estate Winery. For conference
information, visit conference.quantumgravityinstitute.ca. To
register to attend the conference, visit Eventbrite.com.

The front page on the Quantum Gravity Society website is identical to the front page for the Quantum Mechanics & Gravity: Marrying Theory & Experiment conference website. It’s probable that will change with time.

This seems to be an in-person event only.

The site for the conference is in an exceptionally pretty location in Coal Harbour and it’s close to Stanley Park (a major tourist attraction),

The Westin Bayshore, Vancouver
1601 Bayshore Drive
Vancouver, BC V6G 2V4
View map

Assuming that most of my readers will be interested in the ‘public’ day, here’s more from the Wednesday, August 17, 2022 registration page on Eventbrite,

Tickets:

  • Corporate Table of 8 all day access – includes VIP Luncheon: $1,100
  • Ticket per person all day access – includes VIP Luncheon: $129
  • Ticket per person all day access (no VIP luncheon): $59
  • Student / Academia Ticket – all day access (no VIP luncheon): $30

Date:

Wednesday, August 17, 2022 @ 9:00 a.m. – 5:15 p.m. (PT)

Schedule:

  • Registration Opens: 8:00 a.m.
  • Morning Program: 9:00 a.m. – 12:30 p.m.
  • VIP Lunch: 12:30 p.m. – 2:30 p.m.
  • Afternoon Program: 2:30 p.m. – 4:20 p.m.
  • Public Discussion / Debate: 4:20 p.m. – 5:15 p.m.

Program:

9:00 a.m. Session 1: Beginning of the Universe

  • Viatcheslav Mukhanov – Theoretical Physicist and Cosmologist, University of Munich
  • Paul Steinhardt – Theoretical Physicist, Princeton University

Session 2: History of the Universe

  • Jim Peebles, 2019 Nobel Laureate, Princeton University
  • Baron Martin Rees – Cosmologist and Astrophysicist, University of Cambridge
  • Sir Roger Penrose, 2020 Nobel Laureate, University of Oxford (via zoom)

12:30 p.m. VIP Lunch Session: Quantum Gravity — Why Should We Care?

  • Kip Thorne – 2017 Nobel Laureate, Executive Producer of blockbuster film “Interstellar”

2:30 p.m. Session 3: What do Experiments Say?

  • Markus Aspelmeyer – Experimental Physicist, Quantum Optics and Optomechanics Leader, University of Vienna
  • Sir Roger Penrose – 2020 Nobel Laureate (via zoom)

Session 4: Time Travel

  • Kip Thorne – 2017 Nobel Laureate, Executive Producer of blockbuster film “Interstellar”

Event Partners

  • Quantum Gravity Society
  • Westin Bayshore
  • Fiore Group
  • Concord Pacific
  • VanEdge Capital
  • Frind Estate Winery

Marketing Partners

  • BC Business Council
  • Greater Vancouver Board of Trade

Please note that Sir Roger Penrose will be present via Zoom but all the others will be there in the room with you.

Given that Kip Thorne won his 2017 Nobel Prize in Physics (with Rainer Weiss and Barry Barish) for work on gravitational waves, it’s surprising there’s no mention of this in the publicity for a conference on quantum gravity. Finding gravitational waves in 2016 was a very big deal (see Josh Fischman’s and Steve Mirsky’s February 11, 2016 interview with Kip Thorne for Scientific American).

Some thoughts on this conference and the Canadian quantum scene

This conference has a fascinating collection of players. Even I recognized some of the names, e.g., Penrose, Rees, Thorne.

The academics were to be expected and every presenter is an academic, often with their own Wikipedia page. Weirdly, there’s no one from the Perimeter Institute Institute for Theoretical Physics or TRIUMF (a national physics laboratory and centre for particle acceleration) or from anywhere else in Canada, which may be due to their academic specialty rather than an attempt to freeze out Canadian physicists. In any event, the conference academics are largely from the US (a lot of them from CalTech and Stanford) and from the UK.

The business people are a bit of a surprise. The BC Business Council and the Greater Vancouver Board of Trade? Frank Giustra who first made his money with gold mines, then with Lionsgate Entertainment, and who continues to make a great deal of money with his equity investment company, Fiore Group? Terry Hui, Chief Executive Office of Concord Pacific, a real estate development company? VanEdge Capital, an early stage venture capital fund? A winery? Missing from this list is D-Wave Systems, Canada’s quantum calling card and local company. While their area of expertise is quantum computing, I’d still expect to see them present as sponsors.

The academics? These people are not cheap dates (flights, speaker’s fees, a room at the Bayshore, meals). This is a very expensive conference and $129 for lunch and a daypass is likely a heavily subsidized ticket.

Another surprise? No government money/sponsorship. I don’t recall seeing another academic conference held in Canada without any government participation.

Canadian quantum scene

A National Quantum Strategy was first announced in the 2021 Canadian federal budget and reannounced in the 2022 federal budget (see my April 19, 2022 posting for a few more budget details).. Or, you may find this National Quantum Strategy Consultations: What We Heard Report more informative. There’s also a webpage for general information about the National Quantum Strategy.

As evidence of action, the Natural Science and Engineering Research Council of Canada (NSERC) announced new grant programmes made possible by the National Quantum Strategy in a March 15, 2022 news release,

Quantum science and innovation are giving rise to promising advances in communications, computing, materials, sensing, health care, navigation and other key areas. The Government of Canada is committed to helping shape the future of quantum technology by supporting Canada’s quantum sector and establishing leadership in this emerging and transformative domain.

Today [March 15, 2022], the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, is announcing an investment of $137.9 million through the Natural Sciences and Engineering Research Council of Canada’s (NSERC) Collaborative Research and Training Experience (CREATE) grants and Alliance grants. These grants are an important next step in advancing the National Quantum Strategy and will reinforce Canada’s research strengths in quantum science while also helping to develop a talent pipeline to support the growth of a strong quantum community.

Quick facts

Budget 2021 committed $360 million to build the foundation for a National Quantum Strategy, enabling the Government of Canada to build on previous investments in the sector to advance the emerging field of quantum technologies. The quantum sector is key to fuelling Canada’s economy, long-term resilience and growth, especially as technologies mature and more sectors harness quantum capabilities.

Development of quantum technologies offers job opportunities in research and science, software and hardware engineering and development, manufacturing, technical support, sales and marketing, business operations and other fields.

The Government of Canada also invested more than $1 billion in quantum research and science from 2009 to 2020—mainly through competitive granting agency programs, including Natural Sciences and Engineering Research Council of Canada programs and the Canada First Research Excellence Fund—to help establish Canada as a global leader in quantum science.

In addition, the government has invested in bringing new quantum technologies to market, including investments through Canada’s regional development agencies, the Strategic Innovation Fund and the National Research Council of Canada’s Industrial Research Assistance Program.

Bank of Canada, cryptocurrency, and quantum computing

My July 25, 2022 posting features a special project, Note: All emphases are mine,

… (from an April 14, 2022 HKA Marketing Communications news release on EurekAlert),

Multiverse Computing, a global leader in quantum computing solutions for the financial industry and beyond with offices in Toronto and Spain, today announced it has completed a proof-of-concept project with the Bank of Canada through which the parties used quantum computing to simulate the adoption of cryptocurrency as a method of payment by non-financial firms.

“We are proud to be a trusted partner of the first G7 central bank to explore modelling of complex networks and cryptocurrencies through the use of quantum computing,” said Sam Mugel, CTO [Chief Technical Officer] at Multiverse Computing. “The results of the simulation are very intriguing and insightful as stakeholders consider further research in the domain. Thanks to the algorithm we developed together with our partners at the Bank of Canada, we have been able to model a complex system reliably and accurately given the current state of quantum computing capabilities.”

Multiverse Computing conducted its innovative work related to applying quantum computing for modelling complex economic interactions in a research project with the Bank of Canada. The project explored quantum computing technology as a way to simulate complex economic behaviour that is otherwise very difficult to simulate using traditional computational techniques.

By implementing this solution using D-Wave’s annealing quantum computer, the simulation was able to tackle financial networks as large as 8-10 players, with up to 2^90 possible network configurations. Note that classical computing approaches cannot solve large networks of practical relevance as a 15-player network requires as many resources as there are atoms in the universe.

Quantum Technologies and the Council of Canadian Academies (CCA)

In a May 26, 2022 blog posting the CCA announced its Expert Panel on Quantum Technologies (they will be issuing a Quantum Technologies report),

The emergence of quantum technologies will impact all sectors of the Canadian economy, presenting significant opportunities but also risks. At the request of the National Research Council of Canada (NRC) and Innovation, Science and Economic Development Canada (ISED), the Council of Canadian Academies (CCA) has formed an Expert Panel to examine the impacts, opportunities, and challenges quantum technologies present for Canadian industry, governments, and Canadians. Raymond Laflamme, O.C., FRSC, Canada Research Chair in Quantum Information and Professor in the Department of Physics and Astronomy at the University of Waterloo, will serve as Chair of the Expert Panel.

“Quantum technologies have the potential to transform computing, sensing, communications, healthcare, navigation and many other areas,” said Dr. Laflamme. “But a close examination of the risks and vulnerabilities of these technologies is critical, and I look forward to undertaking this crucial work with the panel.”

As Chair, Dr. Laflamme will lead a multidisciplinary group with expertise in quantum technologies, economics, innovation, ethics, and legal and regulatory frameworks. The Panel will answer the following question:

In light of current trends affecting the evolution of quantum technologies, what impacts, opportunities and challenges do these present for Canadian industry, governments and Canadians more broadly?

The Expert Panel on Quantum Technologies:

Raymond Laflamme, O.C., FRSC (Chair), Canada Research Chair in Quantum Information; the Mike and Ophelia Lazaridis John von Neumann Chair in Quantum Information; Professor, Department of Physics and Astronomy, University of Waterloo

Sally Daub, Founder and Managing Partner, Pool Global Partners

Shohini Ghose, Professor, Physics and Computer Science, Wilfrid Laurier University; NSERC Chair for Women in Science and Engineering

Paul Gulyas, Senior Innovation Executive, IBM Canada

Mark W. Johnson, Senior Vice-President, Quantum Technologies and Systems Products, D-Wave Systems

Elham Kashefi, Professor of Quantum Computing, School of Informatics, University of Edinburgh; Directeur de recherche au CNRS, LIP6 Sorbonne Université

Mauritz Kop, Fellow and Visiting Scholar, Stanford Law School, Stanford University

Dominic Martin, Professor, Département d’organisation et de ressources humaines, École des sciences de la gestion, Université du Québec à Montréal

Darius Ornston, Associate Professor, Munk School of Global Affairs and Public Policy, University of Toronto

Barry Sanders, FRSC, Director, Institute for Quantum Science and Technology, University of Calgary

Eric Santor, Advisor to the Governor, Bank of Canada

Christian Sarra-Bournet, Quantum Strategy Director and Executive Director, Institut quantique, Université de Sherbrooke

Stephanie Simmons, Associate Professor, Canada Research Chair in Quantum Nanoelectronics, and CIFAR Quantum Information Science Fellow, Department of Physics, Simon Fraser University

Jacqueline Walsh, Instructor; Director, initio Technology & Innovation Law Clinic, Dalhousie University

You’ll note that both the Bank of Canada and D-Wave Systems are represented on this expert panel.

The CCA Quantum Technologies report (in progress) page can be found here.

Does it mean anything?

Since I only skim the top layer of information (disparagingly described as ‘high level’ by the technology types I used to work with), all I can say is there’s a remarkable level of interest from various groups who are self-organizing. (The interest is international as well. I found the International Society for Quantum Gravity [ISQG], which had its first meeting in 2021.)

I don’t know what the purpose is other than it seems the Canadian focus seems to be on money. The board of trade and business council have no interest in primary research and the federal government’s national quantum strategy is part of Innovation, Science and Economic Development (ISED) Canada’s mandate. You’ll notice ‘science’ is sandwiched between ‘innovation’, which is often code for business, and economic development.

The Bank of Canada’s monetary interests are quite obvious.

The Perimeter Institute mentioned earlier was founded by Mike Lazaridis (from his Wikipedia entry) Note: Links have been removed,

… a Canadian businessman [emphasis mine], investor in quantum computing technologies, and founder of BlackBerry, which created and manufactured the BlackBerry wireless handheld device. With an estimated net worth of US$800 million (as of June 2011), Lazaridis was ranked by Forbes as the 17th wealthiest Canadian and 651st in the world.[4]

In 2000, Lazaridis founded and donated more than $170 million to the Perimeter Institute for Theoretical Physics.[11][12] He and his wife Ophelia founded and donated more than $100 million to the Institute for Quantum Computing at the University of Waterloo in 2002.[8]

That Institute for Quantum Computing? There’s an interesting connection. Raymond Laflamme, the chair for the CCA expert panel, was its director for a number of years and he’s closely affiliated with the Perimeter Institute. (I’m not suggesting anything nefarious or dodgy. It’s a small community in Canada and relationships tend to be tightly interlaced.) I’m surprised he’s not part of the quantum mechanics and gravity conference but that could have something to do with scheduling.

One last interesting bit about Laflamme, from his Wikipedia entry, Note: Links have been removed)

As Stephen Hawking’s PhD student, he first became famous for convincing Hawking that time does not reverse in a contracting universe, along with Don Page. Hawking told the story of how this happened in his famous book A Brief History of Time in the chapter The Arrow of Time.[3] Later on Laflamme made a name for himself in quantum computing and quantum information theory, which is what he is famous for today.

Getting back to the Quantum Mechanics & Gravity: Marrying Theory & Experiment, the public day looks pretty interesting and when is the next time you’ll have a chance to hobnob with all those Nobel Laureates?

Bank of Canada and Multiverse Computing model complex networks & cryptocurrencies with quantum computing

Given all the concern over rising inflation (McGill University press room, February 23, 2022 “Experts: Canadian inflation hits a new three-decade high” and Bank of Canada rates (Pete Evans in an April 13, 2022 article for the Canadian Broadcasting Corporation’s online news), this news release was a little unexpected both for timing (one week after the 2022 Canadian federal budget was delivered) and content (from an April 14, 2022 HKA Marketing Communications news release on EurekAlert),

Multiverse Computing, a global leader in quantum computing solutions for the financial industry and beyond with offices in Toronto and Spain, today announced it has completed a proof-of-concept project with the Bank of Canada through which the parties used quantum computing to simulate the adoption of cryptocurrency as a method of payment by non-financial firms.

“We are proud to be a trusted partner of the first G7 central bank to explore modelling of complex networks and cryptocurrencies through the use of quantum computing,” said Sam Mugel, CTO [Chief Technical Officer] at Multiverse Computing. “The results of the simulation are very intriguing and insightful as stakeholders consider further research in the domain. Thanks to the algorithm we developed together with our partners at the Bank of Canada, we have been able to model a complex system reliably and accurately given the current state of quantum computing capabilities.”

Companies may adopt various forms of payments. So, it’s important to develop a deep understanding of interactions that can take place in payments networks.

Multiverse Computing conducted its innovative work related to applying quantum computing for modelling complex economic interactions in a research project with the Bank of Canada. The project explored quantum computing technology as a way to simulate complex economic behaviour that is otherwise very difficult to simulate using traditional computational techniques.

By implementing this solution using D-Wave’s annealing quantum computer, the simulation was able to tackle financial networks as large as 8-10 players, with up to 2^90 possible network configurations. Note that classical computing approaches cannot solve large networks of practical relevance as a 15-player network requires as many resources as there are atoms in the universe.

“We wanted to test the power of quantum computing on a research case that is hard to solve using classical computing techniques,” said Maryam Haghighi, Director, Data Science at the Bank of Canada. “This collaboration helped us learn more about how quantum computing can provide new insights into economic problems by carrying out complex simulations on quantum hardware.”

Motivated by the empirical observations about the cooperative nature of adoption of cryptocurrency payments, this theoretical study found that for some industries, these digital assets would share the payments market with traditional bank transfers and cash-like instruments. The market share for each would depend on how the financial institutions respond to the cryptocurrency adoptions, and on the economic costs associated with such trades.

The quantum simulations helped generate examples that illustrate how similar firms may end up adopting different levels of cryptocurrency use.

About Multiverse Computing

Multiverse Computing is a leading quantum software company that applies quantum and quantum-inspired solutions to tackle complex problems in finance to deliver value today and enable a more resilient and prosperous economy. The company’s expertise in quantum control and computational methods as well as finance means it can secure maximum results from current quantum devices. Its flagship product, Singularity, allows financial professionals to leverage quantum computing with common software tools.  The company is targeting additional verticals as well, including mobility, energy, the life sciences and industry 4.0.

Contacts:

Multiverse Computing
www.multiversecomputing.com
contact@multiversecomputing.com
+346 60 94 11 54

I wish there was a little more information about the contents of the report (although it is nice to know they have one).

D-Wave Systems, for those who don’t know, is a Vancouver-area company that supplies hardware (here’s more from their Wikipedia entry), Note: Links have been removed,

D-Wave Systems Inc. is a Canadian quantum computing company, based in Burnaby, British Columbia, Canada. D-Wave was the world’s first company to sell computers to exploit quantum effects in their operation.[2] D-Wave’s early customers include Lockheed Martin, University of Southern California, Google/NASA and Los Alamos National Lab.

The company has to this point specialized in quantum annealing. This is a specific type of quantum computing best used to solve the kind of problem (analyzing a multi-player situation) that the Bank of Canada was trying to solve.

I checked out ‘Multiverse’ in Toronto and they claim this, “World leaders in quantum computing for the financial industry,” on their homepage.

As for the company that produced the news release, HKA Marketing Communications, based in Southern California, they claim this “Specialists in Quantum Tech PR: #1 agency in this space” on their homepage.

I checked out the Bank of Canada website and didn’t find anything about this project.

Canadian company, Nanotech Security Corp. hopes to purchase Fortress Optical Features

Nanotech Security Corp. started life as a spin-off company from Simon Fraser University in Vancouver, Canada. A  Jan. 17, 2011 posting and a followup Sept. 29, 2011 posting will probably give you more information about the technology and the company’s beginnings than you every thought you’d want.

For those interested in the company’s current expectations, an Aug. 27, 2014 news item on Nanotechnology Now describes Nanotech Security Corp.’s plan to purchase another business (also Canadian with the parent company [which is not being purchased] headquartered in North Vancouver},

Nanotech Security Corp. (TSXV:NTS) (OTCQX:NTSFF) (“Nanotech” or “the Company”) today announces an agreement with Fortress Global Securities Sarl, a subsidiary of TSX listed Fortress Paper Ltd. (“Fortress Paper”), to purchase 100% of Fortress Optical Features Ltd. (“Fortress Optical Features”), a producer of optical thin film (“OTF”) used as security threads in banknotes in several countries. The definitive share and loan purchase agreement (the “Purchase Agreement”) provides for Nanotech to acquire 100% of the issued and outstanding securities of Fortress Optical Features for consideration of up to $17.5 million, of which 3 million Nanotech shares (up to $4.5 million) is contingent on the future operating performance of Fortress Optical Features. Nanotech has also entered into an agreement with Canaccord Genuity Corp. (“Canaccord Genuity”) to act as sole lead manager and book-runner, and including Craig-Hallum Capital Group, in respect of a private placement of subscription receipts of the Company convertible into Nanotech common shares (“Shares”) and Share purchase warrants (“Warrants”) in a targeted range of $9.0 million to $16.0 million as more fully described below. To date, subscription agreements in excess of $8.0 million have been received which is an amount sufficient to pay the cash portion of the acquisition under the Purchase Agreement. All monetary amounts are in Canadian dollars.

An Aug. 26, 2014 Nanotech Security Corp. news release, which originated the news item, provides additional details,

The acquisition of Fortress Optical Features will serve as a platform to accelerate commercialization of Nanotech’s KolourOptik technology by integrating it into Fortress Optical Features’ product line as an addition of KolourOptik images to the OTF threads.

Nanotech will acquire Fortress Optical Features’ state-of-the-art building and vacuum metal deposition equipment, located near Ottawa.

The transaction combines complementary businesses that can leverage established banknote customer relationships to accelerate market entry and leapfrog competitive technologies. To date, Fortress Optical Features’ technology has been utilized by 11 international currencies.

Fortress Optical Features’ CEO Igi LeRoux, and COO, Ron Ridley, will be integrated into the Company’s senior management.

Fortress has the right to appoint one director to the Nanotech board and Nanotech will appoint a director to a Fortress affiliate concerned with security paper production.
Cash portion of the purchase price to be funded by a subscription receipts offering at $1.50, each convertible into a Share and one-half Warrant as fully described below.
Concurrent financing and acquisition closings are scheduled for September 10, 2014.

“We believe this will be a transformational transaction for Nanotech”, stated Doug Blakeway, President and CEO of Nanotech. “By layering our KolourOptik nanotechnology onto Fortress Optical Features’ security threads which are currently used in numerous currencies, we will create a next-generation product for the banknote industry”.

Mr. Blakeway added, “Additionally, the transaction will expand Nanotech’s current IP portfolio for optical security features to include Fortress Optical Features’ 14 current patent applications which should enhance our ability to compete in other commercial spaces such as passports as well as product branding and authentication”.

Fortress Optical Features’ core business is optical thin film material used in security threads incorporated in banknotes in several countries. Originally developed by the Bank of Canada, and subsequently sold to Fortress Optical Features in 2011, this technology was deployed on Canadian banknotes from 1989 until 2011 as well as ten other international currencies. In the twelve month period ending December 31, 2013 Fortress Optical Features generated approximately $2.3 million in revenue and its existing plant could service production of about eight times the level of production which generated this revenue.

Fortress Optical Features recently invested $4.2 million to renovate its existing production facility and added $1.0 million in new equipment over the past few years. As part of the transaction, Nanotech will acquire Fortress Optical Features’ state-of-the-art production facility and high technology OTF production equipment. Fortress Optical Features is currently pursuing business in some of the world’s largest countries and sees potential new opportunities internationally. According to Secura Monde International, the top five banknote producing economies include China, India, the European Union, the United States and Indonesia.

TRANSACTION DETAILS AND CLOSING CONDITIONS

Under the terms of the Purchase Agreement, Nanotech will pay up to $17.5 million to be satisfied by a combination of $7 million cash, 5 million common shares of Nanotech and a secured vendor take-back note of $3 million with an interest rate of 4% per annum. Of this consideration 2 million shares will have a four month hold period from closing and 3 million shares will be escrowed and shall be released based on certain specific performance milestones based on sales of product to new customers over up to 5 years. Shares may be released early in the event of a sale of the business or change of control of Nanotech. Contingent shares not released after 5 years will be cancelled. Details of the share release formula will be found in the Purchase Agreement to be filed at www.sedar.com.

All Shares have a deemed value of $1.50 and the acquisition and financing transactions do not constitute a change of business nor a change of control for Nanotech but will be treated under TSX Venture Exchange policies as a fundamental acquisition.

Completion of the transaction will be subject to customary closing conditions, including receipt of all regulatory approvals of the TSXV as well as the listing of the common shares issuable in connection with the transaction, including those underlying the subscription receipts. If Nanotech elects to terminate the acquisition in reliance on an allowable condition, a $600,000 break fee payable in Shares is due to Fortress Paper. Nanotech and Fortress Optical Features anticipate the transaction and financing will close on or about September 10, 2014.

RELATED AGREEMENT DETAILS

As part of Nanotech’s acquisition of Fortress Optical Features, the parties and/or their affiliates have entered into certain ancillary agreements. These include a supply agreement under which Fortress Optical Features will continue to supply OTF security threads to Fortress Paper’s Swiss-based Landqart specialty paper division. Landqart will enjoy favoured customer status subject to certain minimum purchase obligations. Under a lease and related shared services agreement, a Fortress Paper affiliate will lease approximately 2/3 of the 100,000 sq ft building being acquired as part of Fortress Optical Features assets and the parties will share the costs of steam production, electrical power, security, and administration services. The $3 million note is fully secured against Fortress Optical Features shares and assets.

SUBSCRIPTION RECEIPT OFFERING

Nanotech has entered into an agreement with Canaccord Genuity, acting as sole lead manager and sole bookrunner, and including Craig-Hallum Capital Group, to sell on a best-efforts marketed private placement basis, up to approximately 10,667,000 subscription receipts of the Company (the “Subscription Receipts”) at a price of $1.50 per Subscription Receipt (the “Subscription Price”), for gross proceeds to Nanotech of up to $16.0 million.

The Subscription Receipts will automatically convert, without additional payment, into one common share and one-half of a common share purchase warrant of the Company for each Subscription Receipt upon completion of the transaction. Subject to certain conditions, each whole purchase warrant will entitle the holder to purchase one common share of Nanotech at a price of $1.90 for a period of one year from issuance. The warrants are subject to accelerated expiry in the event that the common shares of Nanotech trade on the TSX Venture Exchange at $2.25 or more for a ten consecutive day period after the four month resale restricted period applicable to the Shares in Canada expires. Completion of the Subscription Receipt offering is subject to certain conditions, including receipt of the approval of the TSXV and all other necessary regulatory approvals.

Net proceeds from the Subscription Receipt offering will be used by the Company to partially fund the purchase price payable for Fortress Optical Features and for general corporate purposes.

The Subscription Price represents a discount of approximately 6% to the closing price of $1.60 per common share of Nanotech on the TSXV on August 25, 2014 and a discount of approximately 7% over the 30-trading day volume-weighted average price of $ 1.61 per common share of Nanotech on the TSXV, up to and including August 25, 2014.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

####

About Nanotech Security Corp.

Nanotech has been a leading innovator in the design and commercialization of advanced security products using nano-optical devices. Nanotech’s KolourOptik™ and Plasmogram™ optically variable devices (“OVD”s) are nanotechnology based product platforms originally inspired by the unique optical properties of the iridescent wings of the Blue Morpho butterfly. Nanotech OVD images produce intense, high definition images that are ideal for brand authentication and for distinguishing currency, documents, personal identification, consumer electronics, etc. from fakes. Nanotech’s KolourOptik OVD platform creates unique, easy to authenticate images through interaction of light with nano-sized (billionth of a meter) arrays of surface indentation structures imbedded through algorithms and electron beams into various substrates. These nanostructures create vivid colour images, activated by a simple tilt or rotation, and achieve higher resolutions than the best LED-displays currently available, as well as having optical properties not achievable with holograms.

Additional information about Nanotech and its technologies can be found on its website www.nanosecurity.ca or the Canadian disclosure filings website www.sedar.com or the OTCMarkets disclosure filings website www.otcmarkets.com

ABOUT FORTRESS OPTICAL FEATURES

Fortress Optical Features produces optically variable thin film security material for the security threads contained in certain previous Canadian banknotes and various other international currency denominations. The film is a unique combination of layered or ‘stacked’ thin film materials to produce a predictable colour replay. Additional features of the film include differing optical features or colors which appear when the banknote is tilted. The material was developed by the Bank of Canada in coordination with the National Research Council of Canada in the early 1980s and was first used as a patch on Bank of Canada $20, $50, $100 and $1,000 denominations of Birds of Canada series issued from 1988-1993 and also used on all Canadian Journey denominations issued from 2004 –2011. Fortress Optical Features’ high security products are marketed to security paper manufacturers throughout the world.

Additional information about Fortress Optical Features and its technologies can be found on its website www.fortresspaper.com/company/optical-security-features

This News Release contains forward-looking statements about the proposed acquisition by Nanotech of all of the issued and outstanding securities of Fortress Optical Features and the related offering of Subscription Receipts. Forward-looking statements are frequently, but not always, identified by words such as “expects”, “anticipates”, “believes”, “intends”, “estimates”, “predicts”, “potential”, “targeted” “plans”, “possible” and similar expressions, or statements that events, conditions or results “will”, “may”, “could” or “should” occur or be achieved.

These forward-looking statements include, without limitation, statements about our market opportunities, strategies, competition, and the Company’s views that its nano-optical technology will continue to show promise for mass production and commercial application. The principal risks related to these forward-looking statements are that the Company’s intellectual property claims will not prove sufficiently broad or enforceable to provide the necessary commercial protection and to attract the necessary capital and/or that the Company’s products will not be able to displace entrenched hologram, metalized strip tagging, and other conventional anti-counterfeiting technologies sufficiently to allow for profitability.

There can be no assurance that the transaction will occur or that the anticipated strategic benefits and operational synergies will be realized. The transaction is subject to the successful closing of the Subscription Receipt offering and to various regulatory approvals, including approvals by the TSXV, and the fulfilment of certain conditions, and there can be no assurance that any such approvals will be obtained and/or any such conditions will be met. The transaction and the Subscription Receipt offering could be modified, restructured or terminated.

Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect Nanotech’s expectations only as of the date of this News Release. Nanotech disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

This News Release is not an offer to sell or the solicitation of an offer to buy any securities in the United States or in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities described in this News Release have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States absent registration or an applicable exemption from the registration requirements of such laws.

This News Release is not an offer to sell or the solicitation of an offer to buy any securities in the United States or in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities described in this News Release have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States absent registration or an applicable exemption from the registration requirements of such laws.

So there you have it. No one is responsible for anything but they hope for the best.

Do you think we’re sexy? Canadian five dollar bill ‘launched’ from outer space

I’m a bit late to this party as the new bills were launched, so to speak, from outer space by Chris Hadfield, the first Canadian to command the International Space Station, along with the usual suspects. In at least one quarter, there’s more than a hint of envy regarding our sexy new $5 bill. From the May 1, 2013 article by Kadim Shubber for UK Wired,

Though it pains us to say it, Canada may have “out cooled” the UK (but just this once).

Canada’s new $5 note features an astronaut, a view of Earth from space, and, yes, space robots. The UK’s new £5 note will feature… Sir Winston Churchill.

Canada’s Financial Post, in an Apr. 28, 2013 piece about both new bills, noted this,

Focus groups consulted about the proposed images for the new bank note series thought the space motif of the new five-dollar bill looked childish.

Others were left scratching their heads over the depiction of Dextre, a Canadian robotic handyman on board the International Space Station.

Some people wrongly assumed Dextre was the name of an astronaut shown on the bill, while others had no clue who the name referred to.

Here’s what the fuss is all about (you can find a larger image at http://www.flickr.com/photos/bankofcanada/8694157272/_),

$5—back/verso

Here’s more about the launch from the Apr. 30, 2013 Bank of Canada news release,

While orbiting more than 350 kilometres above Earth, Commander Hadfield gave Canadians their first look at the new $5 polymer note. It features images of Canadarm2 and Dextre – robotics innovations used to build and maintain the Space Station and that symbolize Canada’s ongoing contribution to the international space program.

“I try to inspire young Canadians to aim high. This new $5 bill should do the same,” Commander Hadfield said. “By giving prominence to Canadian achievements in space, this bank note reminds us that not even the sky is the limit.”

The front of the $5 note features a portrait of Sir Wilfrid Laurier, Prime Minister of Canada from 1896 to 1911.

One of the Canadian leaders in our robotics space exploration programme is MDA, which was founded in Richmond, BC. From MDA’s space exploration webpage,

MDA’s robotic systems have enabled human spaceflight for nearly three decades, assembling space infrastructure, servicing space assets, supporting spacewalks, and safe berthing of visiting space vehicles. With exploration entering a new era of deeper space transportation and commercial crew and cargo services, MDA’s next generation robotic systems and advanced technologies are being developed to meet the future needs of human space infrastructure.

As global space agencies turn their attention to the next steps in planetary exploration, MDA has developed a broad portfolio of advanced planetary technology spanning robotics, vision, instruments, and complete rover vehicles to support future international missions to the Moon, Mars and beyond.

MDA’s solutions have helped advance the boundaries of robotic exploration, from vision systems for orbital rendezvous and proximity operations, to robotic arms and mechanisms aboard every one of NASA’s Mars rovers and landers, and planetary science instruments that include the Phoenix Meteorological Station, MSL’s APXS spectrometer currently en route to Mars, and the OLA mapping LIDAR for NASA’s OSIRIS-REX asteroid mission.

You can find out more about Canadarm2 and DEXTRE on the MDA website. As for the new $5 and $10 bills, they will be put into circulation in November 2013.

I last mentioned in Hadfield in connection with a National Film Board of Canada Space School in my Apr. 22, 2013 posting.