Update: noco-noco Inc Announces Significant New Financing - Committed Equity Facility Up to $150 million

Rhea-AI Summary

noco-noco Inc (NASDAQ: NCNC) has secured a significant new financing option through a standby equity line of credit (ELOC) with Arena Investors, LP affiliate, Arena Business Solutions. This facility, effective August 29, 2024, allows noco-noco to issue and sell up to $150 million in common stock shares to Arena.

The company's F-1/A Registration Statement became effective on August 19, 2024. This ELOC is expected to enhance noco-noco's financial flexibility, strengthen shareholder equity, and accelerate the commercialization of X-SEPATM. CEO Masataka Matsumura emphasized that this financing is a key part of their fundraising strategy, enabling clearer planning and faster execution of commercialization plans.

Positive

• Secured a standby equity line of credit (ELOC) up to $150 million
• Enhanced financial flexibility and strengthened shareholder equity
• Accelerated progress towards X-SEPATM production and commercialization
• F-1/A Registration Statement became effective, allowing for the use of the ELOC

Negative

• Potential dilution of existing shareholders' equity if ELOC is utilized

Insights

Financial Analyst

This $150 million committed equity facility significantly bolsters noco-noco's financial position. It provides a flexible funding source without immediate dilution, allowing the company to access capital as needed. This is particularly important for a company in the commercialization phase of its X-SEPATM technology. The facility enhances noco-noco's ability to fund R&D, scale production and potentially accelerate market entry.

However, investors should note that while this facility provides financial flexibility, it also carries the risk of future dilution if fully utilized. The impact on share price will depend on the timing and size of drawdowns, as well as the company's progress in commercializing its technology. Overall, this facility is a positive development for noco-noco's near-term financial stability and growth prospects.

Tech Expert

The X-SEPATM technology noco-noco is commercializing likely refers to an advanced battery separator, a critical component in lithium-ion batteries. Improved separators can enhance battery performance, safety and longevity. The $150 million facility could significantly accelerate the development and production of this technology.

If X-SEPATM offers substantial improvements over existing separators, it could position noco-noco as a key player in the rapidly growing electric vehicle and energy storage markets. However, the battery technology sector is highly competitive, with established players and numerous startups vying for market share. noco-noco's success will depend on the unique advantages of X-SEPATM and its ability to scale production efficiently. This funding provides a solid foundation, but execution will be key.

Market Research Analyst

noco-noco's focus on clean and sustainable technologies aligns with global trends towards decarbonization and renewable energy. The $150 million equity facility positions the company to capitalize on these growing markets. However, investors should consider the competitive landscape and potential regulatory changes that could impact adoption rates of new battery technologies.

The company's NASDAQ listing (NCNC) provides visibility and access to a broad investor base, which could be beneficial for future capital raises. The effective F-1/A registration is also a positive sign, indicating regulatory compliance. As noco-noco moves towards commercialization, key metrics to watch will include production costs, partnerships with OEMs and any third-party validations of the X-SEPATM technology. These factors will be important in determining the company's long-term success and market position.

Singapore, Sept. 19, 2024 (GLOBE NEWSWIRE) --

noco-noco Inc Announces Significant New Financing

- Committed Equity Facility Up to $150 million -

- Significantly Strengthens Financial Flexibility and Advances Progress Toward Start of X-SEPA^TM Production -

- F-1/A Registration Statement Effective on August 19, 2024 -

September 13, 2024- noco-noco Inc (“noco-noco" or the “Company”) (NASDAQ: NCNC), today announced that it has entered into a standby equity line of credit (“ELOC”) with Arena Investors, LP affliate, Arena Business Solutions (“ABS”) which become effective on August 29, 2024. Under the terms of the ELOC, the company will have the right, but not the obligation, to issue and sell to Arena up to $150 million in shares of the Company’s common stock. Its post effective amendment on the Registration Statement on Form F-1/A dated August 16, 2024, has been declared effective by the U.S. Securities and Exchange Commission on August 19, 2024. The ELOC will significantly improve the company's financial flexibility, strengthen its shareholder equity and accelerate its progress toward commercialisation of X-SEPA^TM.

Masataka Matsumura, Chief Executive Officer and Director of the company commented, “This financing facility is part of our key strategy to raise funds. With this new financing, we have greater financial flexibility and can plan with greater clarity and confidence as we accelerate our commercialisation plans. We are pleased to welcome ABS as our funding partner and are working diligently to drive the global shift toward a cleaner, greener, and smarter future. With our innovative technologies and practical solutions, we simplify the path to a more sustainable world. We will also be providing an update on the company's business plans shortly.”

The information contained in this press release does not constitute an offer to sell or the solicitation of an offer to buy shares of noco-noco common stock.

About noco-noco

noco-noco Inc (NASDAQ: NCNC) is a technology solutions provider working to accelerate the global transformation to a decarbonized economy. Building its business on X-SEPA™ — the revolutionary battery separator technology developed in Japan and designed for long-lasting and high heat-resistant performance — noco-noco addresses the need for clean, affordable, and sustainable energy storage solutions. 

Read more about noco-noco:

https://noco-noco.com/

Safe Harbor Statement:

This press release contains forward-looking statements within the meaning of section 27A of the U.S. Securities Act of 1933, as amended (the “Securities Act”), and section 21E of the U.S. Securities Exchange Act of 1934 (“Exchange Act”) that are based on beliefs and assumptions and information currently available to noco-noco. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” “target,” “seek” or the negative or plural of these words, or other similar expressions that are predictions or indicate future events or prospects, although not all forward-looking statements contain these words. Any statements that refer to expectations, projections, or other characterizations of future events or circumstances, the markets in which noco-noco operates as well as any information concerning possible or assumed future results of operations of noco-noco, are also forward-looking statements. These statements involve risks, uncertainties, and other factors that may cause actual results, levels of activity, performance, or achievements to be materially different from those expressed or implied by these forward-looking statements. Although noco-noco believes that it has a reasonable basis for each forward-looking statement contained in this communication, noco-noco cautions you that these statements are based on a combination of facts and factors currently known and projections of the future, which are inherently uncertain. noco-noco cannot assure you that the forward-looking statements in this communication will prove to be accurate. These forward-looking statements are subject to a number of risks and uncertainties, including, among others, the impact of the global pandemic like COVID-19, the outcome of any potential litigation, government or regulatory proceedings, and other risks and uncertainties. There may be additional risks that noco-noco presently does not know or that noco-noco currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by noco-noco and its respective directors, officers or employees or any other person that noco-noco will achieve their objectives and plans in any specified time frame, or at all. The forward-looking statements in this press release represent the views of noco-noco as of the date of this communication. Subsequent events and developments may cause those views to change. However, while noco-noco may update these forward-looking statements in the future, there is no current intention to do so, except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing the views of noco-noco as of any date subsequent to the date of this communication.

For media inquiries, please email: investor@noco-noco.com 

FAQ

What is the value of noco-noco's (NCNC) new financing facility?

noco-noco Inc (NCNC) has secured a standby equity line of credit (ELOC) up to $150 million with Arena Investors, LP affiliate, Arena Business Solutions.

When did noco-noco's (NCNC) new financing facility become effective?

The standby equity line of credit (ELOC) for noco-noco Inc (NCNC) became effective on August 29, 2024.

What is the purpose of noco-noco's (NCNC) new financing facility?

The new financing facility aims to improve noco-noco's financial flexibility, strengthen shareholder equity, and accelerate the commercialization of X-SEPATM technology.

When was noco-noco's (NCNC) F-1/A Registration Statement declared effective?

noco-noco Inc's (NCNC) F-1/A Registration Statement was declared effective by the U.S. Securities and Exchange Commission on August 19, 2024.