Watch List: Nano One Update - Mar 31

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dan_s
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Watch List: Nano One Update - Mar 31

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March 31, 2023

Vancouver, Canada (TSX: NANO) (OTC: NNOMF) (Frankfurt: LBMB)

Nano One® Materials Corp. (“Nano One” or the “Company”) is a clean technology company with patented processes for the low-cost, low-environmental footprint production of high-performance cathode materials used in lithium-ion batteries. Nano One has filed its audited annual consolidated financial statements (the “financial statements”), management’s discussion & analysis (“MD&A”), and annual information form (“AIF”) as at and for the year ended December 31, 2022 (“Q4 2022”) and is pleased to provide the following highlights from Q4 2022.

Q4 2022 Highlights and Headlines

Working capital of ~$40.6 million; cash of ~$39.5 million
Acquisition of Johnson Matthey’s 80,000 ft2 Candiac production facility in Montreal successfully closed.
The only existing North American lithium iron phosphate (“LFP”) production facility.
Addition of ~50 experienced professionals with nearly 400 years of scale-up, commercialization, and cathode manufacturing expertise on LFP to the Nano One team.
Commenced One-Pot trials and decommissioning of unused equipment.
Joint Development Agreement entered into with Umicore

“2022 was a pivotal year for Nano One,” said CEO Dan Blondal, “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.”

Corporate Milestones for Q4 2022

Acquisition of Johnson Matthey Battery Materials Ltd.

On November 1, 2022, the Company closed the acquisition of Johnson Matthey Battery Materials Ltd. (“JMBM Canada”), a Canadian entity located in Candiac, Québec. The Company paid cash consideration of $10,250,000, plus working capital items totalling $5,750,000, and incurred transaction costs (legal fees) of $352,993, for aggregate consideration of $16,352,993 (the “acquisition”).

As the acquisition constituted an asset acquisition under the guidance provided in IFRS 3, Business Combinations, the consideration paid was allocated on a pro rata basis to the fair values of the assets and liabilities acquired. Accordingly, the amount recognized within the financial statements for property, plant and equipment amounted to $10,602,993. Moreover, the Company engaged an arm’s-length appraiser to estimate fair value information whereby the fair value of the property (land and building) was determined to be approximately $25,000,000, and the fair value (under the ordinary liquidation value (OLV) method) of the equipment acquired amounted to approximately $7,500,000.

Prior to closing of the acquisition, Nano One initiated planning, engineering, and developing business channels in collaboration with key employees at the Candiac facility. The Company has analyzed the techno-economics, critical minerals, carbon footprint, and environmental impact of its One-Pot process extensively and the Company believes this process provides a significant opportunity to differentiate itself both economically and environmentally.

Trials to verify the production of LFP using Nano One’s patented One-Pot process in the Candiac facility have commenced. The team engaged a local engineering firm that has experience in the design and build of the Candiac facility to assist with large pilot trials of the One-Pot process, helping to bridge the learning curve and expedite the facility's transition to Nano One. Results from these trials will be used to make critical business, commercial, and plant conversion decisions in 2023. The Company has also ordered critical raw material inputs and equipment, including One-Pot reactors, to support these transition activities.

Joint Development Agreement - Umicore

On December 21, 2022, the Company announced the signing of a joint development agreement (“JDA”) with Umicore, a circular materials technology company. Under the JDA, the companies will co-develop production process technologies for CAM for lithium-ion batteries. Under the JDA, Umicore will evaluate Nano One’s patented One-Pot M2CAM Process technology with the intention to integrate it with Umicore’s proprietary process technology for the production of high-nickel NMC CAM. With the JDA, both parties aim to leverage their respective technologies and know-how to further increase the throughput rate while reducing the costs and environmental footprint of CAM production.

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
For a more detailed discussion of Nano One’s annual 2022 results, please refer to the Company’s financial statements, MD&A, and AIF which are available at www.sedar.com.

About Nano One®

Nano One Materials Corp. (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. Nano One's technology is applicable to electric vehicles, energy storage, and consumer electronics, reducing costs and carbon intensity while improving environmental impact. The Company aims to pilot and demonstrate its technology as turn-key production solutions for license, joint venture, and independent production opportunities, leveraging Canadian talent and critical minerals for emerging markets in North America, Europe, and the Indo-Pacific region. Nano One has received funding from SDTC and the Governments of Canada and British Columbia.

For more information, please visit www.nanoone.ca

Company Contact:
Paul Guedes
info@nanoone.ca
(604) 420-2041
Dan Steffens
Energy Prospectus Group
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