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Canadian battery materials specialist Nano One Materials Corp (NASDAQ:NNOMF) is still attracting interest from investors following its $10 million private placement, covered here on 5th February.

The battery materials tech firm as announced a further allotment, and says it will use the proceeds to fund the expansion of its facilities in Canada and underwrite further technology development.

As a result of its 10% over-allotment, the size of its non-brokered private placement that was previously announced on January 30, 2020 and February 5, 2020, has been increased by $1m to a total of up to $11m.

Nano One is offering the additional 9,565,217 shares at a price of $1.15  plus an additional one half of a share as a purchase warrant (which allow holders to pick up an additional share at $1.60 up to 36 months after the issue).

The Armchair Trader first covered the stock on 3 December last year when it was trading at $1.30 with the price currently at $1.59 at the time of writing.

Strategic relationships will be key for Nano One

Nano One has strategic relationships in place already, for example with Volkswagen Group Research to look at future car battery technology, and Pulead in China, where it is researching lithium ion battery processing. One of the reasons we like this stock is the sheer range of applications for Nano One’s technology.

While Nano One is not able to discuss some of the other partnerships it is working on, CEO Dan Blondal has said that the firm is seeing increased interest from the automotive sector.

It owns a patented nanocrystal technology that can improve the durability of lithium cathode materials. Car manufacturers are interested in Nano One’s single crystal cathode technology which allows these cathodes to be produced consistently, something it is very hard to do.

Markets taking electric vehicles seriously

The jump in Tesla’s share price (NASDAQ:TSLA) last week, which saw the stock move to a 52 week high of 968.99, is evidence of just how seriously the market is taking the electric vehicle story. While shares have since dropped on the back of profit taking and concerns about the impact of the coronavirus on its Chinese operations, interest in electric vehicles remains intense.

Technology that can change everybody’s lives

Nano One is working on technology that can change the lives of everybody, in all walks of life. It has received the backing of the Canadian government, that funded it at an early stage. It has built strategic partnerships with major names in industrial and automotive manufacturing.

The drive to move the world away from a fossil-fuel burning, energy guzzling infrastructure is picking up speed every year, and technologies like the battery components that Nano One is developing are going to play a big role in that process. What is more, Nano One is available as a listed stock at a time when more and more pioneering technology is being researched by companies that remain privately held and are then acquired by larger firms.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Michael Morton

Michael Morton

Michael has worked within the Financial Industry for more than 20 years. Starting out as a financial analyst, he has extensive experience working with fund management groups and brokerages.

With an interest in Stocks and Shares, Funds, ETFs and Commodities, his investment focus is medium to long term gains, with the objective of financial security on retirement, and building wealth for his young children for their adult life. His broker of choice is Hargreaves Lansdown.

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