Nano One secures an additional $11 million in cash to provide a multi-year funding runway for their work on lithium-ion battery cathodes

For companies that are not yet producing revenues, the threat of running out of funding is a significant business risk. As the COVID-19 disruption deepens and some companies run low on cash, Nano One Materials has secured an additional $11 million in funding which will provide them with “a multi-year runway extending over three years.” This essentially removes the short-term funding risk making the stock a safer buy for investors.

Nano One Materials Corp. (TSXV: NNO) is working on making lithium-ion batteries better. Nano One has developed patented and scaleable industrial processes for producing low cost, high performance, battery materials typically used in the battery cathode. The processing technology enables lower-cost feedstocks, simplifies production, and advances performance for a wide range of cathode materials.

Nano One is working to make lithium-ion battery cathodes cheaper and better

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Nano One’s recent funding success

• $11m raised from private and institutional groups
• $5.25m grant from Sustainable Development Technology Canada (SDTC)

In connection with the closing of the $11m financing, Nano One issued 9,565,000 units at a price of $1.15 per unit with each unit comprising of one common share in the capital of the Company (the “Shares”) and one-half of one common share purchase warrant (the “Warrants”). Each whole Warrant is exercisable into one share at an exercise price of $1.60 per until February 21, 2023.

The proceeds from the financing will be used for corporate development, facilities expansion, technology advancement and general working capital.

Nano One CEO Mr. Dan Blondal stated:

“We are thrilled with the capital market response to this latest placement. The proceeds from this financing will also be leveraged by an additional five million dollars in non-dilutive and non-repayable contributions, that was awarded to Nano One by Sustainable Development Technology Canada in May of 2019. The sum of sixteen million dollars enables us to accelerate business plans and co-development activities including those already underway with Volkswagen, Pulead, Saint-Gobain and other undisclosed global automotive interests.”

Note: Nano One also receives financial support from the National Research Council of Canada Industrial Research Assistance Program (NRC-IRAP).

Nano One – Why invest?

Nano One’s development partners

Nano One is very well partnered into key battery suppliers and some car manufacturers, including several big names – Pulead, Saint-Gobain and Volkswagen. Nano One is working with Pulead to develop better LFP batteries, with Saint-Gobain to improve thermal processing and to develop enhanced high temprature cathode processing, and with Volkswagen to develop advanced materials for next generation batteries.

Apart from the partnerships discussed above and other undisclosed opportunities, Nano One has 16 patents with 30+ patents pending.

Nano One’s business model

Nano One’s goal is to achieve up to $1 billion in licensing fees revenue for their patented cathode technologies, by tapping into the rapidly growing cathode market that is forecast to be worth $23 billion by 2025.

Nano One is tapping into the battery cathode market which is forecast to be worth $23 billion in revenues by 2025

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Closing remarks

Nano One is ticking all the right boxes.

• Great patented technology – Check.
• Industry leading partners (Pulead, Saint-Gobain and Volkswagen) – Check
• Funding secured ($16 million in total) – Check
• Government backing – Check

With a potential up to $1 billion licensing fees opportunity and a market cap of just C$80 million, it is not too late for investors to get on board. If Nano One succeeds it will have been a great time for investors to have bought in now after the recent dip. Execution risk remains, but the rewards look large if Nano One can pull it off.

“We use a process that is environmentally friendly, we have no waste stream, we combine all of the coating and crystallization and all of the preparation of nickel, manganese, and cobalt all into one step. So there are fewer steps, there’s less energy consumed, less waste, and results in a longer-lasting battery material that could lead to more durable battery.” States Dan Blondal, CEO, Director & Founder of Nano One Materials Corp. (TSXV: NNO), in an interview with InvestorIntel’s Ron Wortel at PDAC 2020.

Dan went on to say that Nano One has developed intellectual property and patents to make battery materials that can improve the performance, durability, and safety of batteries. Dan also spoke on Tesla’s million-mile battery. He said that Tesla has used cathode material supplied by a Chinese manufacturer in the battery. Dan continued, “Nano One has intellectual property and patents that have nanocrystalline coated material which is very much akin to what they were using except ours is commercially viable.” Dan also provided an update on Nano One’s other battery technologies. He said that the company is working on lithium iron phosphate batteries used in electric buses, grid storage, etc. Nano One is also working on cobalt-free battery material which is aimed at next-generation solid-state batteries.

To access the complete interview, click here

Disclaimer: Nano One Materials Corp. is an advertorial member of InvestorIntel Corp.

In an InvestorIntel interview during PDAC 2020, Tracy Weslosky secures an interview update with CEO, Director & Founder Dan Blondal on Nano One Materials Corp. (TSXV: NNO), a technology company with patented technology for the low-cost production of high-performance lithium-ion battery cathode materials used in electric vehicles, energy storage, and consumer electronics.

Dan spoke on Nano One’s patented technology which can improve the durability of battery cathode materials and could enable electric vehicle manufacturers to significantly increase the lifespan and driving range of their batteries. Market interest is coming back into the battery materials sector with the rise in electric vehicle demand. Dan continued, “We have done a fantastic job by bringing Volkswagen and government funding into the company, and other partners. All that happened last year when it was really hard to get…”

Dan also provided an update on Nano One’s recently closed private placement which was oversubscribed by 80%. In addition to the proceeds from the private placement, Nano One has also received $5 million in non-dilutive and non-repayable contributions from Sustainable Development Technology Canada.

To access the complete interview, click here

Disclaimer: Nano One Materials Corp. is an advertorial member of InvestorIntel Corp.

“The agreement we have with Saint-Gobain is to jointly develop technology that will enhance, the thermal processing of cathode materials for lithium-ion batteries. Ideally we will develop this technology and have an offering, a thermal processing offering for cathode manufacturers. This will be in the lithium-ion battery market and obviously it will be with a multinational company that brings a great deal of credibility to the table.” States Dan Blondal, CEO, Director and Founder of  Nano One Materials Corp. (TSXV: NNO), in an interview with InvestorIntel Corp. CEO Tracy Weslosky.

Tracy Weslosky: Congratulations on your joint development agreement with Saint-Gobain. We are so excited for Nano One Materials. Can you tell us more about this deal please? 

Dan Blondal: Yes. Saint-Gobain is a large multinational corporation. They have got a 350 year history and they have deep roots in materials and ceramics that are used in buildings, aerospace, energy. Nano One, as some of your listeners will know, is a technology company. We are focused on the production of cathode materials for lithium-ion batteries. What this deal is, is about where our business interests collide. We meet at the final stage of cathode production process. That is where cathode patterns undergo a high temperature process in a furnace. It is as simple as that. We are delighted to be collaborating with a company like Saint-Gobain. Obviously they are very large and they have a very big presence. It is a testament to Nano One, to our innovative technology and of course to our people and the know how that we bring to the table.

Tracy Weslosky: I could not agree with you more. How would you describe the benefits for Nano One with this collaboration? Can you tell us as little bit more about that?

Dan Blondal: The agreement we have with Saint-Gobain is to jointly develop technology that will enhance, the thermal processing of cathode materials for lithium-ion batteries. Ideally we will develop this technology and have an offering, a thermal processing offering for cathode manufacturers. This will be in the lithium-ion battery market and obviously it will be with a multinational company that brings a great deal of credibility to the table. 

Tracy Weslosky: Perhaps you can talk a little bit more about how Nano One stands to benefit from this collaboration and joint development agreement.

Dan Blondal: We stand to benefit because we will be able to enhance our cathode materials. We will enhance our thermal processing offering so that is one stage of our process for making these materials. Obviously we believe we can improve the performance, we can bring cost efficiencies to the table and we bring a world-class partner to the table as well, as we start to roll our technology out in a commercial way.

Tracy Weslosky: You have had a lot of really substantial good news this last year Dan, you and your team at Nano One Materials. I noticed you also just put out an announcement for your 10^th patent. Tell us a little bit more about that.

Dan Blondal: That is our 10^th patent. We now have patents in the U.S. and in Canada and Japan, Korea and Taiwan as well. We also have 30 more patents that are currently pending in jurisdictions all over the world, but primarily in the battery important jurisdictions so that would also include China and Europe as well. We are very confident in our patent portfolio and its ability to position us in the marketplace and protect the technology that we have moving forward.

Tracy Weslosky: Of course, looking back on your news for the year Dan, is there anything else you would like to draw our viewers’ attention to?…to access the complete interview, click here

Disclaimer: Nano One Materials Corp. is an advertorial member of InvestorIntel Corp.