Nano One Materials Corp.

Company Overview

Nano One Materials Corp. (TSX-V: NNO, OTC-Nasdaq Intl Designation: NNOMF, Frankfurt: LBMB) is a Canada-based technology company engaged in the development of processing technology to produce battery materials and other advanced nano-structured materials. The Company was incorporated in 2011and is headquartered in Burnaby, Canada. The company carried out an RTO in 2015 with a shell dating back to 1987. As of September30, 2019, the Company had not yet reported any revenues but plans to license its technology to cathode producers and automotive suppliers to earn royalty revenues. In addition, a purchase order for CAD$550,000 of joint development activities was announced in June 2019 and is expected to bring in modest revenues over the next few quarters.

Our Insight

The Opportunities

Nano operates in the energy storage market, one of the fastest growing sectors in sustainable investing in our view. Nano has shown that its cathode technology can generate a direct ROI when used and that it has a first mover advantage in this type of processing technology.

Additionally, the company believes that collaborations with key partners are major steps toward commercialization and management believes it well positioned to capitalize on these partners over the next couple years. Looking at balance sheet, the company has significantly strengthened its capital structure providing a significant runway to further develop JVs as well as invest and expand in new opportunities. Historically the company has burned minimal cash and is pursuing an asset-light model including licensing, minimizing significant capex needs.

The Obstacles

The company is currently pre revenue and the timeline to meaningful revenue generation is not clear. Much of the success will depend on the adoption cycles of their partners, which the company does not have direct control over. There is also a continuous pipeline of technology advancements in energy storage technology and the company will need to move quickly to position itself and entrench its technology.

Furthermore, as a small company working with large partners, it will need to show continuity in operations and demonstrate that it can develop and maintain longterm relationships.