Nano One Signs Definitive Agreement to Sell and Lease Back Its Candiac Building and Property

Rhea-AI Summary

Nano One Materials Corp (TSX:NANO)(OTC:NNOMF) has signed definitive agreements for a sale-leaseback transaction of its Candiac building and property in Québec for estimated net proceeds of C$15.7 million. The deal includes a 15-year lease agreement with potential extensions up to an additional 15 years.

The transaction structure includes a C$2 million vendor loan as deferred payment, secured by an immovable hypothec, with estimated net proceeds of C$13.7 million at closing after transaction costs. A separate C$3 million reserve funded by the purchaser will be held in escrow for potential capital improvements.

This strategic move strengthens Nano One's balance sheet, leveraging over C$40 million in government funding secured in 2024. The company aims to accelerate commercialization and expand Candiac operations' capacity to over 1000tpa of LFP cathode production. The agreement includes a right of first offer for repurchase if the purchaser decides to sell in the future.

Positive

• C$15.7M cash injection strengthens balance sheet
• Leverages C$40M+ in government funding secured in 2024
• Operational stability secured through 15-30 year lease term
• C$3M reserve funded by purchaser for capital improvements
• Right of first offer to repurchase property
• Enables expansion to 1000tpa LFP cathode production capacity

Negative

• Loss of property ownership
• New recurring lease payment obligations
• C$1.3M in transaction costs and security deposit

This transaction significantly strengthens the Company's cash balance while ensuring long-term operational stability in the province of Québec through a 15-year lease agreement with renewal provisions for up to an additional 15 years.

VANCOUVER, BC / ACCESS Newswire / February 26, 2025 / (TSX:NANO)(OTC PINK:NNOMF)(Frankfurt:LBMB)

Highlights:

• C$15.7 million in estimated net proceeds from sale of land and building, of which C$2 million is a deferred payment in the form of vendor loan.

• Includes lease of at least 15 years and right of first offer to repurchase.

• Provides for operational continuity at the Candiac Operations in Québec.

• Strengthened balance sheet leverages government funding announced in 2024.

• Supports capacity expansion at Candiac to over 1000tpa of LFP cathode production.

Nano One® Materials Corp. ("Nano One" or the "Company"), a process technology company specializing in lithium-ion battery cathode active materials, is pleased to announce that it has entered into definitive agreements for the sale and lease back of its Candiac building and surrounding property at 280 Liberté Avenue, Candiac, Québec ("Property") to Candiac Industrial Properties (I) L.P. ("Purchaser") for estimated net proceeds of C$15.7 million (the "Agreements"). This transaction significantly strengthens the Company's cash balance while ensuring long-term operational stability in the province of Québec through a 15-year lease agreement with renewal provisions for up to an additional 15 years.

Mr. Carlo Valente, CFO of Nano One, commented, "This transaction bolsters our balance sheet and helps leverage over C$40 million in government funding and reimbursements that we secured and announced last year. It also accelerates the commercialization and capacity expansion of the Candiac operations to at least 1000 tpa of LFP cathode production."

With Nano One's balance sheet now strengthened, the Company is well positioned to advance its commercialization and technology licensing efforts with its strategic partners. The funds also enable it to scale up operations in Candiac and push towards revenue generation from future LFP production and licensing.

Key Terms

The Agreements are expected to close on or about February 28, 2025 and include a vendor loan of C$2 million that is a deferred payment and secured by an immovable hypothec, safeguarding Nano One's interests. The transaction costs and a lease security deposit are estimated at C$1.3 million, resulting in estimated net proceeds to the Company at closing of C$13.7 million. The vendor loan incurs interest at 4% per annum and the deferred payment is due $1 million plus interest upon the third anniversary and $1 million plus interest upon the sixth anniversary from the date of closing. In addition to the proceeds and pursuant to a capital investment agreement, a separate C$3 million reserve will be funded by the Purchaser and held in escrow to fund potential capital improvements, should the Purchaser deem them necessary subsequent to closing.

Concurrent with closing of the transaction, Nano One will enter into a lease agreement for the Property for an initial term of 15 years, with three optional 5-year renewal periods. In addition, the Company has the right of first offer should the Purchaser decide to sell in the future. This arrangement provides long-term stability for the Candiac operations.

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About Nano One®

Nano One® Materials Corp. (Nano One) is a technology company changing how the world makes cathode active materials for lithium-ion batteries. Applications include stationary energy storage systems (ESS), portable electronics, and electric vehicles (EVs). The Company's patented One-Pot process reduces costs, is easier-to permit, lowers energy intensity, environmental footprint, and reliance on problematic supply chains. The Company is helping to drive energy security, supply chain resilience, industrial competitiveness and increased performance through process innovation. Scalability is proven and being demonstrated at Nano One's LFP (lithium-iron-phosphate) pilot production plant in Québec-leveraging the only facility and expertise of its kind outside of Asia. Strategic collaborations and partnerships with international companies like Sumitomo Metal Mining, Rio Tinto, and Worley are supporting a design-one-build-many licensing growth strategy-delivering cost-competitive, easier-to-permit and faster-to-market battery materials production solutions world-wide. Nano One has received funding from the Government of Canada, the Government of the United States, the Government of Québec, and the Government of British Columbia.

For more information, please visit www.nanoone.ca

Cautionary Notes and Forward-looking Statements

Certain information contained herein may constitute "forward-looking information" and "forward-looking statements" within the meaning of applicable securities legislation. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking information in this news release includes but is not limited to: timely closing of the Agreements and the successful conclusion thereof; use of proceeds; the Company's current and future business and strategies; the intention to grow the business, operations, revenues, and potential activities of the Company; general economic conditions; the functions and intended benefits of Nano One's technology and products; the development of the Company's technology, supply chains and products; scalability of developed technology; current and future collaboration engineering, and optimization research projects;continued innovation on manufacturing processes, equipment and recycling; successful execution of the Company's milestones; and the acceleration and execution of the Company's plans - which are contingent on support, grants and long-term support from the Company's shareholders. Generally, forward-looking information can be identified by the use of terminology such as 'believe', 'expect', 'anticipate', 'plan', 'intend', 'continue', 'estimate', 'may', 'will', 'should', 'ongoing', ‘target', ‘goal', ‘potential' or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements are based on the current opinions and estimates of management as of the date such statements are made are not, and cannot be, a guarantee of future results or events. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including but not limited to: timely closing of the Agreements and the successful conclusion thereof general and global economic and regulatory changes; next steps and timely execution of the Company's business plans; the development of technology, supply chains, and plans for construction, scale-up and operation of cathode production facilities; successful current or future collaborations that may happen with OEM's, miners or others; successful execution of the Company's milestones; the execution of the Company's plans which are contingent on support and grants; the Company's ability to achieve its stated goals; the commercialization of the Company's technology and patents via license, joint venture and independent production; anticipated global demand, adoption and projected growth for LFP batteries; and other risk factors as identified in Nano One's MD&A and its Annual Information Form dated March 27, 2024, both for the year ended December 31, 2023, and in recent securities filings for the Company which are available at www.sedarplus.ca. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake any obligation to update any forward-looking statements or forward-looking information that is incorporated by reference herein, except as required by applicable securities laws. Investors should not place undue reliance on forward-looking statements. Please note that any links provided to third party websites are for informational purposes only. The Company does not endorse or take responsibility for the content, accuracy, or any other aspect of these websites. Additionally, the Company is not liable for any damages or loss arising from the use or access of any third party website linked to from our platform. Viewers should exercise their own discretion and review the terms of use and privacy policies of any third party website before accessing or interacting with their content.

Contact Information

Paul Guedes
Director, Capital Markets
paul.guedes@nanoone.ca
6049618800

SOURCE: Nano One Materials Corp.

View the original press release on ACCESS Newswire

FAQ

What is the value of Nano One's (NNOMF) Candiac property sale-leaseback deal?

The sale-leaseback transaction is valued at C$15.7 million in estimated net proceeds, with C$13.7 million received at closing and C$2 million as a deferred payment vendor loan.

How long is the lease term for Nano One's (NNOMF) Candiac facility?

The initial lease term is 15 years, with three optional 5-year renewal periods, potentially extending to 30 years total.

What is the planned production capacity expansion at Nano One's (NNOMF) Candiac facility?

The company plans to expand capacity to over 1000tpa of LFP cathode production at the Candiac operations.

What are the terms of NNOMF's C$2 million vendor loan in the Candiac sale?

The vendor loan carries 4% annual interest, with C$1 million plus interest due at year 3 and another C$1 million plus interest at year 6 from closing.