Nanollose Ltd (ASX:NC6) has raised $2.85 million in a strongly oversubscribed placement to institutional and sophisticated investors at an issue price of $0.10 per share.
Proceeds will further strengthen the company’s balance sheet, placing Nanollose in a strong position to further advance the development and commercialisation of its nullarborTM lyocell fibre, which is finer than silk, and significantly stronger than conventional lyocell made from wood pulp.
In January, the company announced the filing of a joint patent application with its R&D partner, Grasim Industries, for high tenacity lyocell fibre made from Microbial Cellulose, and continues to work with Grasim on the development of the technology.
“Expediting development and commercialisation”
Nanollose executive chairman Dr Wayne Best said: “We are very pleased to have received such strong support for this placement from both sophisticated and institutional investors.
"Importantly, the capital raised will expedite the development and commercialisation of Nanollose’s tree-free, high tenacity lyocell, as we continue to progress the pilot production phase to produce sufficient quantities of fibre to enable commercial agreements with fashion brands.”
Placement details
The placement is to be undertaken at an issue price $0.10 per share together with one free attaching option per two new shares, with an exercise price of $0.15 and an expiry date of three years from the date of issue.
These options are subject to shareholder approval, which will be sought at a meeting to be convened as soon as practicable.
The company intends to issue the options under a prospectus, and seek quotation of the options on ASX.
Peak Asset Management acted as sole lead manager to the placement.