Nano One Materials Corp (TSX:NANO, OTC:NNOMF) announced that it has signed a definitive agreement to sell and lease back its Candiac building and surrounding property in Québec for estimated net proceeds of C$15.7 million.
"This transaction bolsters our balance sheet and helps leverage over C$40 million in government funding and reimbursements that we secured and announced last year,” Nano One chief financial officer Carlo Valente said in a statement.
“It also accelerates the commercialization and capacity expansion of the Candiac operations to at least 1,000 tons per annum (tpa) of LFP cathode production."
With enhanced financial flexibility, Nano One said it is positioned to accelerate revenue generation from future LFP production and licensing agreements.
To ensure operational stability, the agreement with Candiac Industrial Properties includes a 15-year lease term with options to extend for up to an additional 15 years.
Nano One retains a right of first offer should the purchaser decide to sell the property in the future.
Of the C$15.7 million in proceeds, C$2 million is structured as a vendor loan, payable in two equal installments on the third and sixth anniversaries of closing, with a 4% annual interest rate.
After accounting for transaction costs and a lease security deposit of approximately C$1.3 million, Nano One anticipates receiving C$13.7 million at closing.
The company expects the deal to close by the end of the month.