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Nano One enters new capital raise, announces further tech breakthroughs

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Nano One (TSX:NANO)  is not standing still. The battery materials technology specialist announced this week it was entering another capital raising phase, this time for C$10m. The fund raising is being led by Eight Capital and Gravitas Securities. The company confirmed 15 October that this was being upsized to C$12.5m. Under the amended terms, 4.5m units are being offered for sale at C$2.72 per unit (a unit in this context being a combination of shares and warrants).

Nano One is offering a mix of shares and warrants as part of its capital raise. The warrants will entitle the  holder to purchase one common share at an exercise price of C$3.55 for a period of 24 months following the closure of the offering. At the time of writing, Nano One shares were trading at just under C$3.00.

Nano One said it would be using the proceeds to fund further research and development efforts, as well as for business development, working capital and general corporate purposes.

The closing date for the offering is scheduled to be on or about 30 October.

CEO Dan Blondal on upcoming Armchair Trader podcast

Nano One CEO Dan Blondal recently joined The Armchair Trader on its podcast series, which will be made available to readers shortly. Blondal was keen to emphasise that the company continues to work with a range of 20 partners, of which only three large ones have so far been disclosed. He did hint that its latest big Asian partnership, still undisclosed, was with a firm outside China. We can only speculate where, but Korea or Japan seem likely.

Blondal has also hinted that the company has now attracted interest from long only funds. It is ideally positioned in the space for small cap, high growth tech ventures that tick the box for funds with strong ESG and climate investment criteria. In July the company’s shares jumped as it attracted the attention of Formidable Asset Management, which said Nano One is “a company with the potential to be truly transformative.” Formidable has a track record of investing in transformative companies within the electric vehicle sector, having also backed Workhorse Group.

Ongoing technical development

Nano One is also working to open up possibilities for its technology within the supply chains that currently operate to provide materials to battery manufacturing. While this does not steal the headlines like Tesla vehicles, Nano One’s patented One Pot process has the potential to eliminate the need for metal feedstocks in the form of sulphates which also eliminates a costly refining step and a sulphate waste stream in cathode production.

The company has recently revealed that it has successfully created a high voltage lithium-ion battery with a significant cycle life. It currently has a demonstration battery that draws on its lithium nickel manganese (LMN) One Pot process. Its latest cell is being tested by a number of undisclosed auto companies and has achieved high rates of charge and discharge and 900 cycles.

We continue to follow Nano One with interest. Market appetite for stocks with exposure to the electric vehicles sector remains intense. Make sure you subscribe to our podcast feed to catch the full Dan Blondal interview.

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This article does not constitute investment advice. Do your own research or consult a professional advisor.

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