The Small Cap Network has followed the progress of MGX Renewables, now doing business as Zinc8 Energy Solutions (CSE: MGXR), for a couple of months now since it was spun off from another company and listed on a Canadian stock exchange. Since then, the small cap has made enough progress to warrant a full update for current and potential investors.  INVESTMENT SUMMARY  Small cap Zinc8 Energy Solutions has developed the MGXR Energy Storage System based upon unique patented zinc-air battery technology where the energy is stored in the form of zinc particles that are similar in size to grains of sand. This system is made with zinc, magnesium and potassium hydroxide which are in abundance, have stable prices, are environmentally friendly (non-toxic in case of leak) and have a long life with low degradation in a closed system. Also, no cobalt or lithium is needed to make the system. In a commercialization milestone, the zinc-air energy storage system will be deployed at an innovative, low-energy-footprint estate in Surrey, BC. The residence known as ‘75 house' is presently under construction with the design selected to the shortlist of entries at the upcoming World Architecture Festival - one of the most prestigious events dedicated to the architecture and development industry. Zinc8 Energy Solutions has arranged a non-brokered private placement for total gross proceeds of up to $3,000,000. This announcement came after the completion of $500,000 worth of financing where two Directors showed their commitment to the Company by purchasing roughly one quarter of the units on offer. As of early September, production of a next generation carbon based cathode had already begun with 300 cathodes for use in the Company’s initial mass storage battery systems being produced.  Zinc8 Energy Solutions continues to add to its experienced team of professional engineers, scientists and business managers with the appointment of a new Director of European Operations and a new (high profile) CEO who was previously a member of the Canadian parliament.  Zinc8 Energy Solutions’ Alternative Energy Storage System   Small cap MGX Renewables began trading last summer on the Canadian Securities Exchange after being spun off from MGX Minerals - a diversified Canadian resource and technology company with interests in global advanced material, energy and water assets. The Company is developing the MGXR Energy Storage System: A modular energy storage system that is designed to deliver power in the range of 20kW - 50MW and energy storage in the range of 120kWh - 1GWh over extended periods of time.  When the system is delivering power, the zinc particles are combined with oxygen drawn from the surrounding air; and when the system is recharging, the zinc particles are regenerated with the oxygen returned to the surrounding air.  Since the energy storage capacity of the MGXR ESS system is determined only by the size of the zinc storage tank, the system offers a very cost-effective and scalable solution versus the fixed power/energy ratio of lithium ion batteries. The system has other key advantages over lithium-ion batteries:  Energy is stored in the electrolyte which is only limited by the size of the plastic tank and the amount of fuel provided. The cost per additional kWh is $10 versus $400 for lithium-ion batteries. There’s a wider temperature range of 20 – 70°C while lithium-ion batteries must be maintained between 30 - 40°C to avoid irreversible precipitation of solids. Raw materials like zinc, magnesium and potassium hydroxide are abundant, have stable prices, are environmentally friendly (non-toxic in case of a leak) and come with a long life and low degradation in a closed system.  No cobalt or lithium is needed for the system to work - meaning there are no disposal problems associated with these potentially toxic elements.  There is no threat of a thermal runaway like with lithium, or for that matter, most other types of batteries. This means the MGXR ESS system is not subject to new and more stringent safety standards placing constraints on the installation of other types of batteries or energy storage devices. Finally, the MGXR ESS system is designed according to a modular architecture enabling a wide variety of system configurations to be created from a small number of common subsystems. This means the system can be configured to support a wide range of discharge power, recharge power and duty cycle requirements such as: Renewables storage (for wind, solar, tidal etc) Grid scale storage and energy trading & arbitrage Industrial, mine and factory on-demand and peak shaving Long duration storage and backup Stationary and portable energy for military and natural disasters Diesel generator replacement and augmentation Motive power (rail or marine) However, renewable energy storage would be the most promising use for the MGXR ESS system because renewable energy suppliers must immediately sell all the energy they produce – even if there is no demand for it (e.g. off peak hours). That's why the Company motto is:   The sun doesn't shine all the time. The wind doesn't blow all the time. MGX Renewables mass storage batteries for the rest of the time.      Latest Updates From Zinc8 Energy Solutions  Back in September, MGX Renewables had announced a corporate name change to Zinc8 Energy Solutions to better reflect the fact that its breakthrough zinc-air energy storage system will be the lowest cost option for customers requiring 8+ hours of energy storage. The Company planned to commence using this registered business name immediately and will then begin the process to officially change the company name and stock-trading symbol.  Other recent updates worth noting include: Commercialization Milestone. In October, Zinc8 Energy Solutions’ announced that its zinc-air energy storage system will be deployed at an innovative, low-energy-footprint estate in Surrey, BC. The residence known as ‘75 house' is presently under construction on the estate and includes many features that make it architecturally unique and leads to very low energy consumption. For example: The concrete structure of the building not only provides exceptional thermal insulation; it also enables the surrounding landscape to be sculptured around and even over parts of the building. Designed by renowned architect Omer Arbel, this residence makes use of a technique of pouring concrete into fabric formwork deployed within minimal plywood rib structures, yielding walls and columnar roof forms. The design has been selected to the shortlist of entries at the upcoming (December 2019) World Architecture Festival - one of the most prestigious events dedicated to the architecture and development industry. The energy storage system to be installed will be configured to be 40 kW and 160 kWh and will be integrated with an onsite solar array to provide the main source of power to the estate. Installation and commissioning of the system is currently scheduled for Q2/Q3 2020 in alignment with the building construction timeline.  Financing Deals. In September, Zinc8 Energy Solutions arranged a non-brokered private placement for total gross proceeds of up to $3,000,000. This announcement comes after the completion of $500,000 worth of financing where Directors Michael Reimann and Dave Hodge participated by purchasing roughly one quarter of the units on offer to show their commitment to the Company. All the financing proceeds will be used for the working capital purposes.     Private placements are non-public offerings that are funding rounds where securities are sold through private offerings mostly to a small number of chosen investors (usually wealthy accredited investors, large banks, mutual funds, insurance companies and pension funds). The key advantage to doing private placements is that the underwriting process is quicker and the issuer will receive proceeds from the sale in less time since the investors are considered to be “sophisticated” (e.g. they understand the risks involved when investing in an early stage small cap stock).  The main disadvantage is that these “sophisticated” investors will want a higher rate of return or a higher percentage of ownership in the business than they would normally demand from an IPO or publicly traded bond as these other forms of financings must go through a much longer and tighter regulatory process. Keep in mind that any dilution won’t matter much if the money raised is used to advance an early stage business that has enormous upside potential.  Production of Next Generation Cathodes. In September, Zinc8 Energy Solutions announced the production of a next generation carbon based cathode with 300 cathodes for use in the Company’s initial mass storage battery systems having already been produced.  Each 5kW fuel cell stack utilizes 50 cathodes and the Company will continue to specialize in the design and manufacture of cathodes in-house. The planned initial scale-up of cathode production is for 36MW of annual equivalent capacity with a minimum storage of 8 hours or 288MWh of storage followed by the addition of similar scale fabrication machinery as necessary.  Zinc8 Energy Solutions continues to develop a hybrid manufacturing strategy of leveraging its proprietary designs utilizing fabrication partners for standardized components (such as injection molded pieces) with the most technically advanced and proprietary components (such as the fuel cell cathode) being manufactured in house.  New (High Profile) CEO. In September, Director Ron MacDonald immediately assumed the role of President and CEO of Zinc8 Energy Solutions. Mr. MacDonald has over 35 years of both public and private sector experience, ranging from international roles within the Parliament of Canada to serving on the boards of numerous publicly listed resource companies.   In recent years, Ron MacDonald has served as the President of NRStor Remote Communities and Mines, a Canadian company based in Toronto focused on partnering with off-grid Indigenous communities and mines to develop renewable energy and energy storage projects. This led to two projects currently being developed in northern British Columbia and Nunavut. Mr. MacDonald was the Executive Chairman and Director of American Vanadium Corp (Vanadium supply chain & CellCube Energy Storage System) and he was Executive Chairman of Critical Elements Corp (lithium).   Mr. MacDonald also served for over a decade as a Federal Member of Parliament for Halifax, Nova Scotia, during which time the Prime Minister of Canada appointed him as Parliamentary Secretary of International Trade. Mr. MacDonald served for 5 years as President and CEO of the Council of Forest Industries, Canada's largest lumber manufacturing, grading and marketing group, where he developed new markets in China, Korea, India and Japan plus he was a Director and Founding Member of Canada Wood, one of Canada's most successful marketing programs opening up global markets for Canadian Wood Products New European Director. Zinc8 Energy Solutions continues to add to its experienced team of professional engineers, scientists and business managers. At the end of July, the Company announced the appointment of Mr. Fabio Fontana as Director of European Operations. In this role, he will be responsible for setting up and leading the European (EU) operations; organizing the upgrading and certification of the Zinc-Air Fuel Cell Battery to EU Standards; and negotiating manufacturing, distribution and capital relationships in Europe. Note that Mr. Fontana had spent the early part of his career in senior positions with British Gas Plc and has served in a wide variety of roles within the European energy industry. Keep in mind that Teck Resources Ltd has already invested $13 million in the Zinc8 Energy Solutions for research and development purposes plus $2 million in government grants have been received to date. Given that along with the level of progress outlined above, the Small Cap Network will continue to watch the small cap closely over the coming months.