Nano One Materials Corp (CVE:NNO) said it has entered into an agreement with a syndicate of underwriters, led by TD Securities and Roth Canada, which have agreed to purchase on a "bought deal" basis an aggregate of 4,700,000 common shares in the company at a price of $5.35 each for gross proceeds of $25,145,000.
The technology company, which has a patented and scalable industrial process for the production of low cost, high-performance cathode materials used in lithium-ion batteries, said it intends to use the net proceeds of the offering for ongoing research and development, pilot plant expansion, business development and strategic initiatives with partners and collaborators and for general corporate purposes.
READ: Nano One Materials unveils innovative new process aimed at reducing costs and carbon emissions in battery supply chain
The company also said it has agreed to grant the underwriters an over-allotment option to purchase up to an additional 15% of the offering shares at the issue price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the offering. If this option is exercised in full, the company will receive an additional $3,771,750.
On or before March 22, 2021, the company said it will file with the securities commissions or similar regulatory authorities in each province of Canada other than Quebec, a preliminary short form prospectus relating to the share issuance.
The offering is anticipated to close on or about April 1, 2021, and is subject to certain customary conditions and regulatory approval, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities, the company added.
Nano One's innovation addresses the growing ESG (environmental social governance) calls in the industry as its one-pot process eliminates the need for costly and energy-intensive conversion of nickel, cobalt and manganese to sulfate.
Among other advantages to the method, it eliminates the shipment of large quantities of water and sulfur, lowering energy, emissions and costs of shipping by four to five times.
The company has developed patented technology for the low-cost production of high-performance lithium-ion battery cathode materials used in electric vehicles, energy storage and consumer electronics.
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