VANCOUVER, BC / ACCESS CABLE / Aug 5, 2022 / (TSX:NANO) (OTC PINK:NNOMF) (Frankfurt:LBMB).
Nano One® Materials Corp. (“Nano One” or the “Company”) is a clean technology company with proprietary processes for the low-cost, low-environmental-impact production of high-performance cathode materials used in lithium-ion batteries . Nano One has filed its unaudited condensed consolidated interim financial statements (the “financial statements”) and management’s discussion and analysis for the fiscal second quarter ended June 30, 2022 and is pleased to provide the following highlights of the second quarter of 2022.
Second Quarter Highlights and Headlines
~$47.5 million working capital; ~$47.9 million cash Acquisition of Johnson Matthey Battery Materials Joint development agreement with BASF ~$12.5 million Rio Tinto strategic investment
Corporate milestones for the second quarter
Acquisition of battery materials from Johnson Matthey
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 equipment, facilities, equipment, land and other assets
The team has more than 360 years of experience in commercial production and scale-up. The equipment and facilities have proven to supply Tier 1 cell manufacturers for the automotive industry. LFP facilities and land strategically located near Montreal and in operation since 2012. Facilities and equipment can meet Nano One’s process needs with room to expand. Nano One business strategy for LFP and other battery materials
JMBM Canada also includes a 2,400-tonne-per-year LFP production facility that occupies approximately one-tenth of the 400,000-square-foot property. The transaction is expected to be completed by the end of calendar 2022, subject to JMBM Canada meeting contractual commitments 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 manufacturing of materials for batteries. Under the JDA, the companies will jointly develop a by-product-reduced process for the commercial production of next-generation cathodic active materials (CAM), based on BASF’s HED™ family of advanced CAM and utilizing Nano One’s proprietary One-Pot process and M2CAM technologies. BASF has a family of CAM products that are well suited to the changing requirements of batteries in automotive powertrains, and 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 resulting product performance, reduced power consumption and environmental footprint.
Rio Tinto strategic investment
On June 9, 2022, Nano One announced the creation of a strategic partnership with Rio Tinto, a leading global mining and metals group, providing iron and lithium products, collaboration and an investment of US$10,000,000 ($12,536,500). ) into Nano One. This partnership and funding will accelerate Nano One’s multi-cathode (multi-CAM) commercialization strategy and support Canadian CAM manufacturing for a cleaner, more efficient battery supply chain for North American markets. North and abroad.
Nano One issued 4,643,148 common shares to Rio Tinto, 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 a non-brokered private placement. Proceeds will go towards technological and supply chain development, commercialization, Nano One’s acquisition of Candiac’s facilities in Québec, its conversion to One-Pot LFP, and the industrial-scale pilot testing of other Nano technologies. One CAM, and for working capital purposes.
Financial position and results of the second quarter
Gross expenses on research activities of ~$1,600,000 (Q1 2022 – ~$1,700,000) (Q2 2021 – ~$800,000)Purchase Price Consideration for JMBM Canada of ~$10,000,000Proceeds from Rio Tinto Strategic Investment (Private Placement) of ~$12,500,000Gross Incurred Capital Investments of ~$275,000Net Cash Use of ~$800,000 (Q1 2022 – ~$3,900,000)Total Assets of ~ $60,700,000 (March 31, 2022 – ~$51,400,000) Total liability of ~$1,500,000 (March 31, 2022 – ~$1,400,000)
Cash sources during the second quarter came from Rio Tinto private placement (~$12,500,000), cost recovery from strategic partners (~$637,000), interest income (~$123,000), government program income (~ $69,000) and exercises of Values options and warrants (~$49,000).
For a more detailed discussion of Nano One’s second quarter and year-to-date 2022 results, please refer to the Company’s financial statements and management’s discussion and analysis, which are available at sedar.com
Nano One® Materials Corp (Nano One) is a clean technology company with a proprietary, 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, consumption electronic and next-generation batteries in the global push for a zero-emissions future. Nano One’s One-Pot process, its coated nanocrystal materials, and its Metal-to-Cathode Active Material (M2CAM®) technologies address critical performance needs and supply chain constraints while reducing cost and availability. carbon footprint. Nano One has received funding from various government programs and the current “Advanced Battery Materials Scaling Project” is supported by Sustainable Development Technology Canada (SDTC) and the Innovative Clean Energy Fund (ICE) of the Province of British Columbia. For more information please visit www.nanoone.ca
Certain information contained in this document may constitute “forward-looking information” and “forward-looking statements” within the meaning of applicable securities legislation. All statements, except statements of historical fact, are forward-looking statements. Forward-looking information in this press release includes, but is not limited to: current and future collaborative engineering and optimization research projects; closing of the pending acquisition of the Candiac facilities in Québec; the execution of the Company’s plans, the development of materials, production methods and study for pre-pilot, pilot and scale manufacturing on the way to commercialization that are contingent on support and grants; successful collaboration with Rio Tinto; and the commercialization of the Company’s technology and patents. In general, forward-looking information can be identified by the use of terminology such as ‘believe’, ‘expect’, ‘anticipate’, ‘plan’, ‘intend’, ‘continue’, ‘estimate’, ‘may’, ‘will’ . ‘, ‘should’, ‘ongoing’, ‘target’, ‘target’, ‘potential’ or variations of such words and phrases or statements that certain actions, events or results “will occur”. Forward-looking statements are based on management’s current opinions and estimates as of the date such statements are made and are not, and cannot be, a guarantee of future results or events. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. or future. -search for information, including but not limited to: closing of the pending acquisition of the Candiac facilities in Québec; any future collaborations that may occur with miners, OEMs or others; the Company’s ability to achieve its stated objectives; the commercialization of the Company’s technology and patents; the execution of the Company’s plans, development of materials, production methods and study for pre-pilot, pilot and scale manufacturing on the way to commercialization; and other risk factors identified in Nano One’s MD&A and Annual Information Form dated March 28, 2022, both for the year ended December 31, 2021, and in the Company’s recent securities filings that are Available at 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 any forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or anticipated. . There can be no guarantee 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 that is incorporated by reference herein, except as required by applicable securities laws. Investors should not place undue reliance on forward-looking statements.
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