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Clean Tech Co. Buys LFP Cathode Producer for CA$10.25M
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Shares of Nano One Materials Corp. traded 46% higher after the company reported it has agreed to acquire 100% of the shares of Québec lithium iron phosphate cathode material manufacturer Johnson Matthey Battery Materials Ltd. for CA$10.25 million.

Clean energy technology company Nano One Materials Corp. (NANO:TSX), which is engaged in producing cathode powders and materials for use in lithium-ion batteries, today announced that "it has entered into a binding agreement to acquire all of the outstanding shares of Johnson Matthey (JM) Battery Materials Ltd. (JMBM Canada) for approximately CA$10.25 million. "

Under the terms of the agreement, Nano One Materials will acquire all of Johnson Matthey Battery Materials' (JMBM Canada) assets including equipment, facilities, and land along with its highly experienced employees, which together have greater than 360 years of combined scale-up and commercial production know-how.

JMBM Canada's lithium iron phosphate (LFP) cathode material plant is located in Candiac, Québec and is capable of producing 2,400 tonnes of LFP cathode material yearly for use in making lithium-ion batteries for automotive and non-automotive applications. The 400,000 sq. ft. property is well suited to server Nano One's process needs and offers significant room for expansion.

The company advised that the acquisition is fully funded and that the transaction is expected to close prior to the end of this calendar year, subject to working capital adjustments, ordinary closing conditions and the fulfillment of contractual commitments by Johnson Matthey.

Nano One Materials CEO Dan Blondal commented, "The rapidly expanding need for responsibly produced cathode materials in North America presents an opportunity for Nano One to deploy its technology and become a leader."

"The facility is in Greater Montreal and strategically located in proximity to employees and their families, international airports, major port facilities and is a critical link in the mines-to-mobility initiative. This complements Nano One's technology innovation center and team in Burnaby, B.C., and is a perfect base for the advancement, expansion and acceleration of our commercialization strategy," Blondal added.

Johnson Matthey Battery Materials' CEO Liam Condon remarked, "We have worked with Nano One on a number of projects over the last year and having seen their innovations, we believe they have the potential to develop the Candiac site in the best way possible. We remain at the Candiac site until the end of the year and are fully committed to serving the needs of our customers."

JMBM Canada is based in the Montreal metropolitan area and focuses on improving performance, functionality and safety of its client's products in areas with high global impact such as low emission transport, chemical processing and efficient natural resource utilization.

Nano One is a Vancouver, B.C.-based technology company which concentrates its efforts on production of cathode powders for use in lithium-ion batteries. The firm claimed that it has developed and patented "a scalable and low carbon intensity industrial process for the low-cost production of high-performance lithium-ion battery cathode materials." The firm's unique materials are engineered to add value to electric vehicles and grid storage batteries in order to address the needs for a zero-emission future.

Nano One started the day with a market cap of around $147.1 million with approximately 95.55 million shares outstanding. NNOMF shares opened 16.7% higher today at $1.4021 (+$0.2025, +16.66%) over yesterday's $1.1996 closing price. The stock has traded today between $1.3494 and $1.81.74 per share and closed for trading at $1.755 (+$0.5538, +46.1%).

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