NANO Nuclear Energy Announces Closing of Upsized $18 Million Underwritten Offering
NANO Nuclear Energy Inc. (NASDAQ: NNE) has successfully closed an $18 million underwritten public offering, selling 900,000 shares of common stock and warrants to purchase 517,500 shares at $20 per share and associated warrant. This follows their May 2024 IPO, which raised $10.25 million at $4.00 per share. As the first publicly listed portable nuclear microreactor company in the U.S., NANO Nuclear plans to use the net proceeds of approximately $16.1 million to advance their proprietary microreactor designs, 'ZEUS' and 'ODIN', develop HALEU fuel transportation and fabrication capabilities, and fund business development activities.
The offering included immediately exercisable five-year warrants with a $20.00 exercise price. The Benchmark Company, acted as the sole book-running representative for the offering. NANO Nuclear aims to accelerate the demonstration of their advanced portable microreactors and potentially generate initial revenues by the end of 2024 through their nuclear consulting services division.
- Successful closing of an $18 million underwritten public offering
- Share price increased from $4.00 in May IPO to $20.00 in this offering
- Net proceeds of approximately $16.1 million to fund R&D and business development
- Potential to generate initial revenues by end of 2024 through nuclear consulting services
- Dilution of existing shareholders due to new share issuance
- Warrants may lead to further dilution if exercised
Insights
The recent announcement from NANO Nuclear Energy regarding the successful closing of their $18 million underwritten offering carries considerable weight for investors. This move follows their IPO in May, which raised $10.25 million. This additional capital infusion serves several strategic purposes.
NANO Nuclear is directing the net proceeds, approximately
The terms of the offering are notable. The sale of 900,000 shares at
From a short-term perspective, the influx of capital provides NANO Nuclear with the necessary resources to accelerate their R&D and potentially achieve initial revenues by the end of the year through their consulting services. Long-term, this positioning in a niche yet critical area of the energy sector offers significant growth prospects, especially as global energy policies increasingly favor sustainable solutions.
From a technological standpoint, NANO Nuclear’s focus on portable nuclear microreactors is groundbreaking. These reactors are designed to be small-scale and transportable, offering flexibility that traditional nuclear power plants cannot. This innovation could address energy needs in remote or underserved areas, providing a reliable, clean energy source where it was previously unfeasible.
The company’s emphasis on HALEU (High-Assay, Low-Enriched Uranium) fuel is particularly pertinent. HALEU is seen as the future of nuclear fuel due to its higher efficiency and ability to sustain longer cycles of energy production compared to traditional nuclear fuels. By investing in the development of HALEU fuel fabrication facilities, NANO Nuclear is not only securing a critical supply chain component for their reactors but also positioning themselves as a key player in the advanced nuclear energy sector.
Additionally, the funding will help in advancing the company's licensed nuclear basket technology for transporting HALEU and other fuel forms. This is important for the practical deployment of their microreactors. The operational flexibility provided by portable reactors, combined with the efficiency of HALEU, positions NANO Nuclear at the cutting edge of energy technology.
NANO Nuclear’s successful capital raise highlights the growing market interest in advanced nuclear technologies. The portable microreactor market is nascent but poised for significant growth as governments and industries alike seek sustainable energy solutions. The ability to generate power in remote locations or during emergencies can revolutionize how energy is distributed and used, providing resilience against grid disruptions.
The oversubscription of the offering, coupled with the substantial increase in raised capital from their IPO, indicates robust investor confidence. This funding round not only validates the market potential of NANO’s technology but also demonstrates the effectiveness of their strategy in communicating this potential to investors.
Looking ahead, if NANO Nuclear can successfully execute their business plan and achieve initial revenues through their nuclear consulting services, it could pave the way for further investments and partnerships. The growing emphasis on clean, efficient energy sources presents a unique opportunity for the company to establish itself as a leader in the advanced nuclear energy market.
First advanced portable nuclear microreactor company publicly listed in the U.S. leverages well received May IPO to raise additional growth capital
New York, N.Y., July 15, 2024 (GLOBE NEWSWIRE) -- NANO Nuclear Energy Inc. (NASDAQ: NNE) (“NANO Nuclear”), a vertically integrated advanced nuclear energy and technology company developing portable clean nuclear energy solutions, today announced that it has closed its previously announced
In the offering, NANO Nuclear sold 900,000 shares of common stock and warrants to purchase 517,500 shares of common stock at
This offering follows NANO Nuclear’s initial public offering which closed on May 10, 2024 in which it sold shares of common stock for gross proceeds of
NANO Nuclear, which believes it is first portable nuclear microreactor company publicly listed in the U.S, expects its net proceeds from the offering, after underwriting commissions and offering expenses, will be approximately
“We are very proud and extremely grateful to have achieved this significant milestone. We thank our pre-IPO investors, as well as many new fundamental institutional and individual investors, for joining this oversubscribed financing and sharing our vision for commercial innovation at the cutting edge of advanced nuclear technology in the U.S.”, said Jay Yu, Founder and Chairman of NANO Nuclear Energy. “This new funding enables us to accelerate the physical demonstration of our advanced portable microreactors, our designs for a cutting-edge nuclear fuel fabrication facility, and further our exclusively licensed patented nuclear basket technology for transportation of commercial quantities of HALEU, waste and other fuel forms. These funds could also help us achieve our goal of generating initial revenues by the end of this year through our nuclear consulting services division. Our commitment remains to be a leading voice and innovator in the revitalized U.S. nuclear energy industry and to create enduring value for our shareholders.”
The Benchmark Company, LLC acted as the sole book-running representative for the offering. Ellenoff Grossman & Schole LLP acted as counsel to NANO Nuclear. Lucosky Brookman LLP acted as counsel to The Benchmark Company. Withum Smith+Brown PC are NANO Nuclear’s registered independent auditors.
Registration statements relating to this public offering were filed with the Securities and Exchange Commission and declared. This registration statement can be obtained by visiting the SEC website at www.sec.gov. Please see such registration statement for additional information regarding NANO Nuclear.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About NANO Nuclear Energy Inc.
NANO Nuclear Energy Inc. (NASDAQ: NNE) is an advanced technology-driven nuclear energy company seeking to become a commercially focused, diversified, and vertically integrated company across four business lines: (i) cutting edge portable microreactor technology, (ii) nuclear fuel fabrication, (iii) nuclear fuel transportation and (iv) nuclear industry consulting services. NANO Nuclear believes it is the first portable nuclear microreactor company to be listed publicly in the U.S.
Led by a world-class nuclear engineering team, NANO Nuclear’s products in technical development are “ZEUS”, a solid core battery reactor, and “ODIN”, a low-pressure coolant reactor, each representing advanced developments in clean energy solutions that are portable, on-demand capable, advanced nuclear microreactors.
Advanced Fuel Transportation Inc. (AFT), a NANO Nuclear subsidiary, is led by former executives from the largest transportation company in the world aiming to build a North American transportation company that will provide commercial quantities of HALEU fuel to small modular reactors, microreactor companies, national laboratories, military, and DOE programs. Through NANO Nuclear, AFT is the exclusive licensee of a patented high-capacity HALEU fuel transportation basket developed by three major U.S. national nuclear laboratories and funded by the Department of Energy. Assuming development and commercialization, AFT is expected to form part of the only vertically integrated nuclear fuel business of its kind in North America.
HALEU Energy Fuel Inc. (HEF), a NANO Nuclear subsidiary, is focusing on the future development of a domestic source for a High-Assay, Low-Enriched Uranium (HALEU) fuel fabrication pipeline for NANO Nuclear’s own microreactors as well as the broader advanced nuclear reactor industry.
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Cautionary Note Regarding Forward Looking Statements
This news release and statements of NANO Nuclear’s management in connection with this news release or related events contain or may contain "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements mean statements (including statements related to the public offering and the proposed use of proceeds from such offering, as described herein) related to future events, which may impact our expected future business and financial performance, and often contain words such as “seek,” "expects", "anticipates", "intends", "plans", "believes", “potential”, "will", "should", "could", "would" or "may" and other words of similar meaning. These forward-looking statements are based on information available to us as of the date of this news release and represent management's current views and assumptions. Forward-looking statements are not guarantees of future performance, events or results and involve significant known and unknown risks, uncertainties and other factors, some of which may be beyond our control. Readers are cautioned that actual results may differ materially and adversely from the results implied in forward-looking statements. For NANO Nuclear, particular risks and uncertainties that could cause our actual future results to differ materially from those expressed in our forward-looking statements include but are not limited to the following: (i) risks related to our U.S. Department of Energy (“DOE”) nuclear fuel manufacturing submission and the development of new or advanced technology, including difficulties with design and testing, cost overruns, development of competitive technology, (ii) our ability to obtain contracts and funding to be able to continue operations; (iii) risks related to uncertainty regarding our ability to commercially deploy a competitive advanced nuclear reactor technology, and (iv) risks related to the impact of government regulation and policies including by the DOE and the U.S. Nuclear Regulatory Commission; and similar risks and uncertainties associated with the business of a start-up business operating a highly regulated industry. These factors may not constitute all of the factors that could cause actual results to differ from those discussed in any forward-looking statement, and the NANO Nuclear therefore encourages investors to review other factors that may affect future results in its filings with the SEC, which are available for review at www.sec.gov and at https://ir.nanonuclearenergy.com/financial-information/sec-filings. Readers are cautioned not to place undue reliance on forward-looking statements, which apply only as of the date of this news release, and forward-looking statements should not be relied upon as a predictor of actual results. We do not undertake to update our forward-looking statements to reflect events or circumstances that may arise after the date of this news release, except as required by law.
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