Nano One Materials Corp (TSX:NANO, OTC:NNOMF) announced that it has received C$12.75 million in non-dilutive cash contributions from various government programs.
The funding is primarily a reimbursement for recent eligible project expenditures and supports the company's engineering, capacity expansion, demonstration, and commercialization efforts at its lithium-iron-phosphate (LFP) plant in Québec.
This funding, combined with proceeds from the previously announced sale of vacant land and a sale-and-leaseback agreement, has contributed to a total of $31.25 million in working capital.
Funds will go towards advancing Nano One's engineering feasibility efforts for its "design-one-build-many" licensing growth strategy.
Nano One also expects to claim approximately $29 million in additional reimbursements from contracted government programs over the next two years and continues to collaborate with governments on new initiatives.
Strengthened balance sheet
Dan Blondal, Nano One’s CEO, highlighted that the funding strengthen the company’s balance sheet in addition to allowing it to execute its expansion, production and licensing plans through 2025 and beyond.
“We are drawing down from approximately C$45 million in government awards previously announced with some contributions retroactive as far back as January 1, 2023,” Blondal said.
“This reflects the strategic importance of our One-Pot process for energy and supply chain security, adds considerable shareholder value and supports commercialization and the fulfillment of our corporate objectives."
Shares of Nano One gained 6.4% in Toronto on Thursday morning.