Nano One Strengthens Financial Position & Leadership for Global Lithium-Ion Battery Materials Market

• Nano One Materials Corp. has successfully closed a C$15.7 million sale-leaseback transaction for its Candiac, Quebec facility, which will provide estimated net proceeds of C$13.7 million at closing.
• The sale-leaseback deal significantly strengthens Nano One's balance sheet and ensures long-term operational stability, enabling the company to leverage over C$40 million in government funding while supporting its expansion plans.
• Dr. Stephen Campbell, Nano One's Chief Technology Officer, is set to retire at the end of June 2025 after nearly a decade of guiding the company's technological growth. Dr. Guoxian Liang, who has a long history with Nano One's team in Quebec has been promoted to Senior VP of Technology to lead R&D, technology, process innovation, and readiness for commercialization.
• With its patented One-Pot process technology, which reduces costs, environmental impact, and supply chain risks while improving performance, Nano One is well-positioned for commercial success in the rapidly growing lithium-ion battery cathode materials market.

Nano One Materials Corp. (TSX:NANO), a technology company focused on innovative lithium-ion battery cathode materials, recently announced two strategic developments to bolster its financial position and technology leadership. The company closed a C$15.7 million sale-leaseback transaction for its Candiac, Quebec facility and revealed a leadership transition plan, with CTO Dr. Stephen Campbell set to retire and SVP Technology Dr. Guoxian Liang promoted to spearhead commercialization efforts. These moves position Nano One to capitalize on the growing global demand for cost-effective, sustainable battery materials.

Company Overview

Nano One is transforming how the world manufactures cathode active materials used in lithium-ion batteries. Its patented One-Pot process technology reduces costs, environmental impact, and supply chain risks while improving performance. The company targets applications in electric vehicles, portable electronics, and stationary energy storage. With a proven, pilot-scale LFP production plant in Quebec and strategic partnerships with industry leaders, Nano One is pursuing a "design one, build many" licensing strategy to accelerate commercialization.

Strengthening Financial Flexibility

The successful closing of the C$15.7 million sale-leaseback transaction for Nano One's Candiac facility significantly enhances the company's financial flexibility. CFO Carlo Valente commented, "This Transaction reinforces our financial flexibility and ensures that we remain well-positioned to advance our commercialization efforts. It enables us to leverage over C$40 million in government funding while expanding our operations in alignment with our strategic vision."

Key terms of the deal include:

• C$13.7 million in estimated net proceeds at closing
• 15-year initial lease term with renewal options up to an additional 15 years
• C$2 million vendor loan structured as a deferred payment
• C$3 million purchaser-funded reserve held in escrow for potential capital improvements
• Right of first offer for Nano One should the purchaser decide to sell in the future

This transaction provides Nano One with the financial resources to fund its growth initiatives while ensuring long-term operational stability at its state-of-the-art Candiac facility.

Technology Leadership Transition

Nano One also announced a leadership transition plan to support its commercialization objectives. After nearly a decade as CTO, Dr. Stephen Campbell will retire at the end of June and transition to a part-time role managing the company's intellectual property portfolio. Dr. Campbell will work closely with Dr. Joseph Guy, a board member and IP specialist, to protect and leverage Nano One's technology as it scales.

CEO Dan Blondal praised Dr. Campbell's contributions: "Stephen has played a vital role in creating shareholder value and technology advancements that include the innovative One-Pot Process, world-leading sulfate-free chemistry, and 50 patents granted in key jurisdictions around the globe."

Dr. Campbell expressed confidence in Nano One's future. In the news release, he states,

"We have readied One-Pot for commercialization---and for continuous innovation. We have a world-class team, and I am confident as I prepare for semi-retirement, that Nano One's technology is in very capable hands for the transition to production, licensing and growth."

Succeeding Dr. Campbell in the day-to-day R&D leadership role is Dr. Guoxian Liang, who has been promoted to Senior VP of Technology. With 19 years of battery industry experience, including key roles in the commercialization of LFP and high-nickel cathode materials, Dr. Liang brings valuable expertise to guide Nano One's technology readiness and commercialization efforts.

Dr. Liang shared his perspective:

"There is a strong need for the One-Pot Process technology in North America and Europe, and our team has a ten-year head start---an advantage that positions us for success. I have great confidence in this team's expertise and drive to bring our technology to commercialization, and I'm excited to contribute my experience to this next phase of growth."

For Investors

Nano One's recent financial and leadership moves underscore the company's commitment to commercializing its innovative battery materials technology. With a strengthened balance sheet, long-term operational stability, and a seasoned technology leadership team, Nano One is well-positioned to capitalize on the growing global demand for cost-effective, sustainable lithium-ion battery cathode materials.

As the company transitions from development to commercialization, investors should closely monitor Nano One's progress in executing its licensing strategy, expanding production capacity, and forging new strategic partnerships. With its patented One-Pot process offering compelling advantages over traditional manufacturing methods, Nano One has the potential to disrupt the battery materials market and create significant value for shareholders in the years ahead.