NNO.V - Cashed up.


Nano One Materials Corp. (NNO.V) 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. NNO.V enables lower cost feedstocks, simplifies production and advances performance for a wide range of cathode materials.


NNO.V has built a demonstration pilot plant and is partnering with global leaders in the lithium ion battery supply chain, including Pulead, Volkswagen and Saint-Gobain to advance its lithium iron phosphate (LFP), lithium nickel manganese cobalt oxide (NMC) and lithium nickel manganese oxide (LNM) cathode technologies for large growth opportunities in e-mobility and renewable energy storage applications.


Coverage was initiated January 2018 with an additional note on August 2019. Below is an update.


Aug. 21 - New Cathode Materials Aim to Make Batteries Safer and Longer Lasting. Update on Nano One’s latest lithium nickel manganese cobalt (NMC) innovations aimed at making high energy lithium ion batteries safer and more durable.


By protecting each nanoparticle rather than larger clusters, Nano One's technology is aimed at mitigating these risks. Nano One is able to control the formation of its patented NMC materials using innovative manufacturing technologies, which are themselves protected by patents in the US, Canada, Taiwan, China, Japan and Korea. Aug. 28 - Receives $845,625 from Early Warrant Exercise Incentive Program. Received gross proceeds of $845,625 from the exercise of 676,500 warrants at $1.25 per share pursuant to its early warrant exercise incentive program.

As an incentive for the early exercise of their share purchase warrants, warrant holders received an additional 676,500 new share purchase warrants (each an "Incentive Warrant") at $1.60. Sep. 30 - Receives $1,181,944 from Sustainable Development Technology Canada ("SDTC"). for NNO.V's Demonstration Pilot Plant Project and initial payment toward the recently launched Scaling Advanced Battery Materials project.


The Demonstration Pilot Plant Project, launched in July 2016, was completed in March of this year. Nano One has successfully delivered on all commitments and reporting requirements related to this project and SDTC has released the 10% hold back portion of their contribution totaling $208,130. As reported on May 31 2019, Nano One has been approved for an additional $5 million from SDTC to support Nano One's Scaling Advanced Battery Materials project.

Nano One and SDTC have recently executed a Project Funding Agreement resulting in Nano One's receipt of an initial contribution of $973,814. The new round of funds will support activities on various cathode materials initiatives with consortium partners Volkswagen, Pulead Technology and Saint-Gobain. This includes detailed supply chain validation, process optimization and plant design for the full scale production of Lithium Iron Phosphate (LFP). In parallel, Nano One aims to demonstrate improved durability and production of high energy density lithium nickel manganese cobalt oxides (NMC) through its joint development activities.

The SDTC funding proceeds are non-dilutive, non-repayable and will be awarded in five installments and dispersed at the beginning of four sequential project phases with a 10% holdback awarded upon completion of the project. Oct. 21 - Adds Another US Battery Materials Patent to its Growing IP Portfolio. US Patent No. 10,446,835 augments the intellectual property estate of the Nano One proprietary process, cathode materials and improved batteries. Dec. 9 - Joint Development with Pulead Achieves Critical Milestone. Pulead has reviewed and approved key suppliers identified by NNO.V. Engineering report available for partner review in Q1 2020.


Nano One to complete an engineering report detailing an LFP production line for review by Pulead early in 2020. It will have a level of detail necessary for licensing discussions and will be instrumental in the calculation of a royalty and/or profit split model for using Nano One’s technology. Pulead produced 15,000 tons of LFP in 2018 and has ambitious growth plans based on their forecast for global demand to reach 200,000 tons per year by 2025. Jan. 6 - Patents a New Durable Cobalt-Free Battery Material. Issuance of Taiwanese patent number I672852 relating to lithium nickel manganese oxide (LNMO) cathode material, also known as high voltage spinel (HVS).

In addition to the increased durability shown below, Nano One's LNMO also eliminates cobalt from the battery. This represents the sixteenth patent in Nano One’s IP portfolio in the U.S., Canada, China, Japan, Korea and Taiwan. Jan. 16 - Battery Durability Improvements Strengthens Global Interest in Nano One. In summary: Increase battery durability, Reduce cobalt in batteries, Apply to NMC, LNMO and LFP, as well as, Strengthen global auto interests.


Nano One’s patented coated nanocrystal innovation provides improvements to the durability and cost of lithium ion battery cathode materials, and is adding to the opportunities with global automotive manufacturers and suppliers.

Each of Nano One’s cathode technologies - lithium iron phosphate (LFP); nickel manganese cobalt oxide (NMC); and high voltage spinel (HVS or LNMO) - form coated nanocrystals with a range of benefits and applications. Jan. 30 - Announces $5M Placement and Leverages $5M in Non-Dilutive Non-Repayable Contributions from SDTC. Pleased to announce that it has arranged a non-brokered private placement of up to 4,3M units at$1.15 per for $5M.


The proceeds of this private placement are intended to be used for corporate development, facilities expansion, technology advancement, and general working capital. Each Unit will consist of one common share and one-half of one common share purchase warrant. Each Warrant will entitle the holder to purchase an additional common share at a price of $1.60 for a period of 36 months from the closing date.

Separately, Mr. Dan Martino of Donaldson Brohman Martin CPA Inc. has been retained to provide CFO and Corporate Secretary services for Nano One, thereby filling roles temporarily held by President, John Lando and Dan Blondal. Feb. 5 - Nano One Increases Private Placement to up to $10,000,000 Feb. 10 - Announces $1,000,000 Over-Allotment to Private Placement Bringing Total Offering up to $11,000,000. The financing will now consist of a total of up to 9,565,217 units (the "Units") at a price of $1.15 - Warrant $1.60. Feb. 24 - Announces Closing of $11,000,000 Private Placement. The proceeds from the Financing will be used for corporate development, facilities expansion, technology advancement and general working capital.


In connection with the Financing, the Company granted a total of 467,845 warrants (each, a “Finder’s Warrant”). Each Finder’s Warrant is exercisable into one Share at an exercise price of $1.60 per Share until February 21, 2023. Apr. 7 - SDTC Increases its Contribution by $250,000. Sustainable Development Technology Canada (SDTC) has increased its contribution to Nano One from $5,000,000 to $5,250,000 with an additional payment of $250,000.


This is a one-time non-dilutive contribution in response to the COVID-19 situation and represents a 5% supplement to current $5M commitment to NNO.V’s Scaling of Advanced Battery Materials project. Apr. 23 - Nano One Patented Cathode Tests Positively in Solid State Batteries. Findings include: a) Cobalt free cathode reduces supply chain risk, increases power and enables fast charging. b) Coated nanocrystal cathodes (single crystal) boost durability, capacity and charge rates.

“Nano One is well positioned to capitalize on the rising automotive interest in solid state lithium ion batteries. Currently, several independent evaluations of our High Voltage Spinel are underway within automotive manufacturer consortia employing both polymer and ceramic solid electrolytes". - Dr. Stephen Campbell May 6 - Receives $3M in Non-Dilutive Funding from the Province of British Columbia. To advance Nano One’s “Scaling of Advanced Battery Materials Project. This $3M contribution by the Province is being made as part of a funding partnership with SDTC and augments Nano One's existing Project Funding Agreement with SDTC, executed in September 2019, bringing the total contribution to $8,283,000.


Summary

In the past nine months, NNO.V has made progress on multiple fronts.

Patents

NNO.V received US Patent No. 10,446,835 (October 21, 2019) and Taiwanese Patent No. I672852 (January 6, 2019). The latest deals with lithium nickel manganese oxide (LNMO) cathode material, also known as high voltage spinel (HVS).


Milestones

Four major achievements were reported in the period.


1. August 21, 2019, it disclosed new cathode material for lithium nickel manganese cobalt (NMC). This innovation was reported to make batteries safer and last longer "By protecting each nanoparticle rather than larger clusters.."


2. December 9, 2019, it confirmed that Pulead has reviewed and approved key suppliers identified by NNO.V. In addition, Nano One commited to complete an engineering report detailing an LFP production line for review by Pulead early in 2020. This report is said to be critical as it will included "a level of detail necessary for licensing discussions and will be instrumental in the calculation of a royalty and/or profit split model for using Nano One’s technology."


3. January 16, 2020, it stated that its coated nanocrystal innovations resulted in battery durability improvements. Not only does this reduce cobalts amount in batteries but it stated that its applications goes beyond NMC and also apply to lithium iron phosphate (LFP) and high voltage spinel (HVS or LNMO). The hallmark of this announcement for the lay person is a 90 seconds video which clearly explains the value proposition of this achievement in simple terms.


4. April 23, 2020, it reported positive test results with Solid State Batteries. Specifically, Coated nanocrystal cathodes (single crystal) boost durability, capacity and charge rates. Adding to successful development with LFP, NMC, & LNMO.


Financing


Early Warrant Incentive Program After launching an Early Warrant Exercise Incentive Program (July 2019), NNO.V was able to obtain $0.845M from it (August 2019). These were exercised at $1.25 and provided holder with 0.66M additional incentive warrant at $1.60. Sustainable Development Technology Canada (SDTC) and The Province of British Columbia. On September 30 2019, NNO.V received $1.18M from SDTC for its Demo Pilot Plant Project and as an initial payment towards scaling its Advanced Battery Material Project. As stated in the release, these are in direct support of activities on various cathode materials initiatives with consortium partners Volkswagen, Pulead Technology and Saint-Gobain. On April 2 2020, STDC increase contribution by $0.25M and finally, on March 6th, NNO.V received a $3M from The Province of British Columbia to advance scaling of its Advanced Battery Materials Project.

Non-Brokered Private Placement. On January 30, 2020, it announced $5M non-brokered placement at $1.15; Warrant $1.60 cents. Less than a week later (February 5) the amount was raised to $10M. On February 11, NNO.V closed an oversubscribed placement at $11M!


In Short

NNO.V continues to produce patents and generate milestones which apply to multiple types of modalities (NMC, LFP, and LNMO), including Solid State Batteries. In addition, it continues to advance its Joint Development Agreement with Pulead by working on a detailed report (due Early 2020) which could lead to a multi-year licensing deal.


The detailed report is certainly "the catalyst" that the market is awaiting to re-price valuation. Yesterday, NNO.V closed at $1.36 but both the early warrant program and recent non-brokered placement have outstanding warrants are at $1.60. Incidently, R1 is currently at $1.45 and R2 at $1.65.


Nonetheless, NNO.V raised $11.8M from financing activities (Private Placement and Early Warrant Program) and $4.4M from Sustainable Development Technology Canada (SDTC) and The Province of British Columbia in this period. Hence, regardless of the outcome of the detailed report on NNO.V valuation, the company is very well cashed up.

DISCLAIMER: The work included in this article is based on current events, technical charts, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The content of rally is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions - rally cannot take responsibility for your investment decisions.

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