Nano One Materials Corp (TSX:NANO, OTC:NNOMF) said it finished the fourth quarter ended December 31, 2022, with working capital of $40.6 million and cash of $39.5 million.
A highlight during the financial year was the successful completion of its acquisition of Johnson Matthey Battery Materials Ltd’s 80,000 square-foot Candiac production facility in Montreal, the only existing North American lithium iron phosphate (LFP) production facility, the company said.
"2022 was a pivotal year for Nano One," CEO Dan Blondal said in a statement.
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He added: "The successful completion of the Candiac acquisition has now added approximately 50 talented professionals to our team and a state-of-the-art LFP production facility, giving us an enviable head-start on the emerging LFP market. We are in a strong position to expand our business rapidly to meet the growing demand for high-performance battery materials.
"Our innovative One-Pot process provides a significant opportunity to differentiate our supply chain, both economically and environmentally, and we are confident that it will enable us to create a sustainably robust and secure supply chain, that can be one hundred percent domiciled in North America, to serve markets in Canada, the USA, Europe, Indo-Pacific region, and other emerging battery jurisdictions. We look forward to leveraging our expertise and capabilities to drive business, commercial, and plant conversion decisions in 2023 and beyond."
Nano One said that on November 1, 2022, the company closed the acquisition of Johnson Matthey Battery Materials Ltd. for cash consideration of $10,250,000, plus working capital items totalling $5,750,000, and incurred transaction costs of $352,993, for aggregate consideration of $16,352,993.
Trials to verify the production of LFP using Nano One's patented One-Pot process in the Candiac facility have commenced, it added.
The company’s joint development agreement with circular materials technology company Umicore was another highlight during the year. Under the agreement signed on December 21, 2022, the companies will co-develop production process technologies for CAM for lithium-ion batteries.
Q4 2022 Financial Position and Results
- Total assets of $56,100,000 (Q3 2022 - $59,100,000)
- Total liabilities of $2,627,000 (Q3 2022 - $1,300,000)
- Net use of cash of $6,500,000 to facilitate operational and strategic efforts (Q3 2022 - $2,000,000)
- Proceeds from government programs, interest income, cost recoveries, and exercises of stock options and warrants of $850,000
- Use of cash for Candiac acquisition and investments in equipment, patent issuance fees, and deposits of $6,500,000
Nano One is a clean technology company with a patented, scalable and low carbon intensity industrial process for the low-cost production of high-performance lithium-ion battery cathode materials with strategic collaborations and partnerships, including automotive OEMs and strategic industry supply chain companies like BASF, Umicore and Rio Tinto.
Contact the author at jon.hopkins@proactiveinvestors.com