Nano One Bolsters Balance Sheet with $15.7M Candiac Property Sale and Leaseback

Nano One Materials Corp. (TSX:NANO)(OTC:NNOMF)(Frankfurt:LBMB), a process technology company specializing in lithium-ion battery cathode active materials, has announced the successful closing of a sale and leaseback agreement for its Candiac building and surrounding property. The transaction, valued at C$15.7 million, significantly strengthens the company's cash balance while ensuring long-term operational stability in the province of Quebec through a 15-year lease agreement with renewal provisions for up to an additional 15 years.

The sale and leaseback transaction, finalized on February 28, 2025, includes a vendor loan of C$2 million structured as 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 C$1 million plus interest upon the third anniversary and C$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, ensuring long-term stability for the Candiac operations.

Nano One's Chief Operating Officer, Alex Holmes, commented on the transaction, stating, "This move strategically positions the company to advance its commercialization and technology licensing initiatives with key partners. The capital infusion will support the scale-up of operations in Candiac, accelerating the company’s path to revenue generation from future LFP production and licensing."

The transaction is expected to have a positive impact on Nano One's financial profile, improving its return on assets (ROA) ratio and potentially leading to higher valuations and increased investor interest. The strengthened balance sheet will also provide the company with greater financial flexibility and the ability to pursue new opportunities.

In conclusion, Nano One's sale and leaseback transaction for its Candiac property is a strategic move that bolsters the company's balance sheet, ensures long-term operational stability, and positions it for growth in the growing battery materials sector. The transaction's positive impact on Nano One's financial profile and increased borrowing capacity will enable the company to pursue new opportunities and accelerate its path to revenue generation.