2022-08-05 | TSX:NANO | Press release


Nano One® Materials Corp. (“Nano One” or the “Company”) is a clean technology company with patented processes for the low-cost, low-environmental-footprint production of high-performance cathode materials used in lithium-ion batteries. Nano One has filed its unaudited condensed interim consolidated financial statements (the “Financial Statements”) and MD&A for the second fiscal quarter ended June 30, 2022 and is pleased to provide the following second quarter 2022 highlights.

Q2 Highlights and Headlines

  • Working capital of approximately $47.5 million; cash of approximately $47.9 million
  • Acquisition of Johnson Matthey Battery Materials
  • Joint development agreement with BASF
  • Strategic investment by Rio Tinto for ~12.5 million dollars

Corporate milestones for the second quarter

Acquisition of Johnson Matthey Battery Materials

On May 25, 2022, Nano One announced that it had entered into a binding agreement to acquire 100% of the shares of Johnson Matthey Battery Materials Ltd. (“JMBM Canada”), a Canadian entity located in Candiac, Quebec, for approximately $10,250,000 paid in cash, subject to closing working capital adjustments.

Acquisition to include team, facilities, equipment, land and other assets

  • The team has over 360 years of scaling and commercial production know-how
  • Proven team and facilities in supplying automotive tier 1 cell manufacturers
  • LFP facility and land strategically located near Montreal and operational since 2012
  • Installation and equipment can meet Nano One’s process needs with room to expand
  • Accelerates Nano One business strategy for LFP and other battery materials

JMBM Canada also includes a 2,400 ton per year LFP production facility occupying approximately one-tenth of the 400,000 square foot property. The transaction is expected to close by the end of calendar year 2022, subject to JMBM Canada fulfilling its contractual covenants and certain other customary closing conditions.

Joint Development Agreement – BASF

On May 31, 2022, Nano One announced the signing of a Joint Development Agreement (“JDA”) with BASF SE (“BASF”), a globally active chemical company with extensive experience in the development and manufacture of materials for batteries. Under the JDA, the companies will jointly develop a process with reduced by-products for the commercial production of next-generation cathode active materials (CAMs), based on BASF’s HEDTM family of advanced CAMs and using the One-Pot process. Patented Nano One and M2CAM Technology. BASF has a family of CAM products well suited to the evolving battery requirements in automotive transmissions and has a proven track record of developing these products in collaboration with others. Nano One and BASF will also use the M2CAM process for greater flexibility in terms of manufacturing approach and performance of the resulting product, reduced energy consumption and environmental footprint.

Rio Tinto strategic investment

On June 9, 2022, Nano One announced a strategic partnership with Rio Tinto, a leading global mining and metallurgical group, providing iron and lithium products, collaboration and investment of US$10,000,000 ($12,536,500) in Nano One. This partnership and funding will accelerate Nano One’s multi-cathode (multi-CAM) commercialization strategy and support CAM manufacturing in Canada for a cleaner and more efficient battery supply chain for North American and overseas markets.

Nano One issued 4,643,148 common shares to Rio Tinto, representing approximately 4.9% of the issued and outstanding shares of Nano One at the time of the share issuance, at $2.70 per share in connection with a private placement without intermediary. Proceeds will be used for technology and supply chain development, commercialization, Nano One’s acquisition of the Candiac facility in Quebec, its conversion to One-Pot LFP and piloting at the industrial scale of other Nano One CAM technologies, as well as for working capital purposes.

Financial position and results for the second quarter

  • Gross expenditure for research activities of ~$1,600,000 (Q1 2022 – ~$1,700,000) (Q2 2021 – ~$800,000)
  • Purchase price consideration for JMBM Canada of approximately $10,000,000
  • Proceeds from Rio Tinto’s strategic investment (private placement) of approximately $12,500,000
  • Gross capital expenditures incurred of approximately $275,000
  • Net cash usage of ~$800,000 (Q1 2022 – ~$3,900,000)
  • Total assets of ~$60,700,000 (March 31, 2022 – ~$51,400,000)
  • Total liabilities of ~$1,500,000 (March 31, 2022 – ~$1,400,000)

Sources of cash during the second quarter were from Rio Tinto private placement (~$12,500,000), cost recoveries from strategic partners (~$637,000), interest income (~$123,000) , proceeds from government programs (~$69,000), and exercises of stock options and warrants. (~$49,000).

For a more detailed discussion of Nano One’s second quarter and full year 2022 results, please refer to the company’s financial statements and management’s report, which are available at www.sedar.com


About Nano One

Nano One® Materials Corp (Nano One) is a clean technology company with a patented, scalable, low-carbon industrial process for the low-cost production of high-performance lithium-ion battery cathode materials. The technology is applicable to electric vehicles, energy storage, consumer electronics and next-generation batteries as part of the global push towards a zero-emission future. Nano One’s One-Pot process, coated nanocrystalline materials and metal-cathode active material (M2CAM®) technologies address fundamental performance needs and supply chain constraints while reducing cost and footprint carbon. Nano One has received funding from various government programs and the current “Scaling of Advanced Battery Materials Project” is supported by Sustainable Development Technology Canada (SDTC) and the Province of British Columbia’s Innovative Clean Energy (ICE) Fund. For more information, please visit www.nanoone.ca

Company Contact:

Paul Guedes

[email protected]

(604) 420-2041

Certain information contained herein may constitute “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking information contained in this press release includes, but is not limited to: current and future collaborative engineering and optimization research projects; closing of the ongoing acquisition of the Candiac plant in Quebec; execution of the Company’s plans, development of materials, production methods and study for pre-pilot, pilot and full-scale manufacturing on the path to commercialization that depend on support and grants; fruitful collaboration with Rio Tinto; and the commercialization of the Company’s technology and patents. Generally, forward-looking information can be identified by the use of terms such as “believe”, “expect”, “anticipate”, “plan”, “intend”, “continue”, ” estimate’, ‘may’, ‘will’, ‘should’, ‘ongoing’, ‘target’, ‘goal’, ‘potential’ or variations of such words and phrases or statements that certain actions, events or results “occur”. will produce”. Forward-looking statements are based on management’s current beliefs and estimates as of the date such statements are made are not, and cannot be, guarantees of future results or events. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results, level of activity, performance or achievements of the Company to differ materially from those expressed or implied by such forward-looking statements or forward-looking statements. – forward-looking information, including, but not limited to: the closing of the pending acquisition of the Candiac plant in Quebec; any future collaborations that may occur with miners, OEMs or others; the Company’s ability to achieve its stated objectives; commercialization of the Company’s technology and patents; the execution of the Company’s plans, the development of materials, production and study methods for pre-pilot, pilot and full-scale manufacturing on the way to commercialization; and other risk factors as identified in Nano One’s MD&A and Annual Information Form dated March 28, 2022, both for the year ended December 31, 2021, and recent securities filings securities of the Company which are available on www.sedar.com. Although the Company’s management has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking statements or information, there may be other factors that cause the results are not those anticipated, estimated or intended. . There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company undertakes no obligation to update any forward-looking statements or forward-looking information incorporated by reference herein, except as required by applicable securities laws. Investors should not place undue reliance on forward-looking statements.

THE SOURCE: Nano One Materials Corp.

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