- Biomaterials company Nanollose (NC6) has received firm commitments for a $2.85 million placement
- More than 28.5 million shares will be issued to institutional and sophisticated investors at 10 cents
- Participants will also receive one free attaching option for every two shares subscribed for, exercisable at 15 cents with expiry three years from issue
- Nanollose will use the funds to strengthen its balance sheet and further advance the development and commercialisation of its nullarbor lyocell fibre
- These nullarbor fibres are stronger than traditional lyocell and are finer than silk
- Nanollose is steady on the market and shares are trading at 12 cents
Biomaterials company Nanollose (NC6) has received firm commitments for a $2.85 million placement.
The company entered a trading halt on April 15 but did not disclose how much it intended to raise or what it would be using the funds for.
All up, 28,537,273 shares will be issued to institutional and sophisticated investors at 10 cents.
Subject to shareholder approval, participants will also receive one free attaching option for every two shares subscribed for, exercisable at 15 cents with expiry three years from issue.
Peak Asset Management will act as sole lead manager and will receive a 6 per cent fee on all funds raised as well as 7.5 million options.
Once received, Nanollose will use the funds to strengthen its balance sheet and further advance the development and commercialisation of its nullarbor lyocell fibre.
Through a joint patent application with Grasim Industries, Nanollose has created a fibre that is purportedly finer than silk and stronger than traditional lyocell.
Lyocell is a form of rayon — a natural fibre made from wood and agricultural products that is made using a closed-loop process requiring low water and chemical usage.
“We are very pleased to have received such strong support for this placement from both sophisticated and institutional investors,” Executive Chairman Dr Wayne Best said.
“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,” he added.
Shares are expected to be issued on April 23.
Nanollose is steady on the market and shares are trading at 12 cents at 2:11 pm AEST.