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Nano One (TSX:NANO) closes over-subscribed private placement

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Nano One Materials Corp (TSX:NANO) has closed its non-brokered placement of $11 million in units which comprised one share in the company at $1.15 plus a warrant granting the right to buy a second at $1.60 before 21 February 2023. Nano One is going to use the proceeds to help it to finance corporate development, expand its facilities and also provide a source of general working capital.

Dan Blondal, CEO of Nano One, told investors that the proceeds from the financing will also be leveraged by an additional $5 million in non-dilutive and non-repayable contributions that were awarded to the company by Sustainable Development Technology Canada in May 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,” Blondal explained, highlighting the strategic partnerships that the company already enjoys.

Some speculation surrounds those other “global automotive interests” although they are believed to be substantial. Blondal hinted at this in his podcast interview with The Armchair Trader last year.

Next gen battery technology play

As iterated in our original research note, Nano One is well positioned as a pioneering batteries materials play across a number of sectors which stand to benefit from its technology. This holds out the prospect of increased range and durability for next generation batteries, including those that are intended to power electric buses and cars. Hence there is considerable behind the scenes interest in the company and its patents from large automotive interests.

Nano One’s share price was trading at 1.29 on 4 February but investor interest has since driven it up by 30% to as high as 1.70 in the last couple of weeks. The stock closed at 1.51 last week having fallen back a little as volumes dried up in the last few days.

As interest in climate-driven investments continues to mount, Nano One is well-positioned to take advantage of a number of interesting opportunities within the battery materials space. This is not restricted to road transport. Our impression is that the company is involved in other discussions behind the scenes which could further contribute to its value for medium term investors.

Note that the private placement, which has now been completed, was doubled in size due to investor enthusiasm. Much of the proceeds are being ploughed into developing further capacity for the company, which points to an anticipated increase in the need for larger facilities. We expect more to come from Nano One.

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This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

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