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NNO.V - An hedge.

January 16, 2019


Nano One Materials Corp. (NNO.V) is in the business of optimizing raw materials via patented process technology for lithium ion battery cathodes for both conventional and solid state batteries. The company is focused on three main cathode types: Lithium Iron Phosphate Battery (LFP), 

Lithium Nickel Manganese Cobalt Oxide (NMC), and Cobalt free High Voltage Spinel (HVS). 

 

Instead of using traditional mechanical method to grid the raw materials, NNO.V mixes the product chemically (cuts down on furnace time) and allows for better biding which increase performance. In sum, NNO.V is concerned with cathode production cost and performance (i.e. speed to charge, capacity, and longevity). Industrial application are for power intensive products/services such as consumer electronics, electric vehicle, and utilities. 

 

With a total addressable market is estimated at $23B, NNO.V intends to generate revenue through collaboration and evaluation of cathode performance via pilot processes with third parties. NNO.V reports being involved with 16+ battery and tier 1 automotive companies. 

 

NNO.V recently reported obtaining its 10th patent and with 30+ more pending. Most of its patents are about the process of assembling material into cathodes. NNO.V has received more than $4,6M in government grant to date and claims to be financed through Q1 -2020. Company had a series of financing with the most recent one at $4M at $1.00 in late 2017.  In the last six month the following release were issued.

 

July 10 - Corporate Update. Over the last six months, NNO.V signed about ten NDA’s and five materials transfer agreements with tier 1 automotive OEMs and their suppliers, and have a half dozen more in progress. Met construction and optimization milestones set forth with the Government of Canada for our Demonstration Pilot Project and are now working towards a final set of milestones for third party validation.

 

Materials testing is proceeding on a number of fronts with a focus on our innovative cobalt-free high-voltage spinel and other novel materials. Since Q1 2018, NNO.V has also made progress in the lab toward improved cathode material performance, specifically in stability and durability. 

 

In the last year, NNO.V has grown its patent portfolio from 3 to 9, adding Japan, Korea and Canada to its other patents in the US and Taiwan. NNO.V is pursuing over 30 new patent applications that will extend the company’s global intellectual property portfolio.

 

July 18 - LFP Innovation for Lithium Ion Batteries. Provides with cost and performance advantages. NNO.V will continue optimizing its LFP process for further cost reduction, improved process throughput and enhanced battery performance. LFP is the cobalt-free, high durability, low cost, and safest cathode material of choice for lithium ion batteries used in e-buses, e-bikes, power tools and grid energy storage systems

 

July 26 - Adds VP Business Development Hamutal Ben Bassat as VP Business Development to lead the commercialization efforts.

 

July. 30 - Receives Nasdaq International Designation. Under the symbol OTC – Nasdaq International Designation: NNOMF. 

 

Aug. 15 - Receives Funding from the Government of Canada to Improve Durability of Lithium Ion Batteries. NRC IRAP will support Nano One’s project to develop Coatings for High Durability Lithium ion Battery Cathodes and will contribute up to $0.34M in non-dilutive and non-repayable funds between August 1, 2018 and May 31, 2020. “NRC IRAP has been a strong supporter of Nano One since 2014.

 

Sept. 20 - Ramps up Efforts on its Innovative Lithium Iron Phosphate Technology. Lithium Iron Phosphate (LFP) cathode material, and the cost of making it, are outperforming global benchmarks and could be a disruptive force in the lithium ion battery market space.

 

“Major cathode producers have begun evaluating our LFP and initial results are consistent with the excellent battery performance we’ve been measuring in our lab,” said Mr. Blondal. “The preliminary economic modeling is also very compelling with LFP production costs conservatively estimated at 10 to 30% below industry standards.” The global LFP market size is projected to be 130,000 tonnes in 2025 and worth about $1.5B.

 

Oct. 1 - Chairman Awarded Entrepreneur of the Year. Nano One Chairman, Paul Matysek, was awarded Ernst and Young’s 2018 Entrepreneur of the Year for Mining and Resources. On a different note, Ms. Tammy Gillis, Nano One’s CFO, has resigned to pursue an opportunity.

 

Oct. 9 - Dr. Stephen Campbell, Principal Scientist, will be taking on a new role as Chief Technology Officer

 

Nov. 13 - Approved for its Tenth Patent - Issuance is expected by early 2019 U.S. Patent and Trademark Office (“USPTO”) has issued a notice of allowance for a patent application made in 2017 “This patent relates to the methods we have developed for scaled up production of lithium ion battery cathode materials, ” said Mr. Blondal. Granted 2,1M options with an exercise price of $1.28 to directors and officers of the company.

 

Dec. 18 - Signs a Joint Development Agreement with Saint-Gobain. The goal of the collaboration is to enhance high temperature processing of Nano One’s lithium ion battery materials. This agreement formalizes innovative efforts that began earlier. Saint-Gobain will also be joining NNO.V demonstration pilot project, as a consortium member with the support of the Government of Canada.

 

NNO.V has been trading roughly between $1.08 to $1.64 (50% range) in the past six months.  The company has made significant progress. It ramped up its number of patents (10) and hired two key roles to promote application and commercialization of its intellectual property. 

 

It has signed ten NDA with prospects and five material transfer agreements with Tier one automobile OEMs and its suppliers. Its made advancement on both LFP and HVS cathode technology and recently signed an agreement with Saint-Gobain.

 

However, Other than the corporate update, most of the releases have encountered significant selling pressure. Its not necessarily related to the quality of the content but perhaps more to liquidity levels, especially of late. Again, NNO.V is fully funded and most recent options were granted at $1.28.

 

 

In a climate of weak specialized metal prices (Cobalt, Nickel, Lithium, Graphite), NNO.V represents much more than a significant hedge for investors.

 

 

 

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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