Nanollose Secures $2.1M to Accelerate Sustainable Fibre Commercialisation
Nanollose Limited has secured $2.1 million in strategic funding to accelerate the commercialisation of its sustainable fibres and soilless growth technologies, marking a pivotal shift from R&D to market-ready products.
- Secured $2.1 million through Placement, Rights Issue, and director fee conversions
- Progress on Nullarbor and Nufolium fibres with positive partner feedback
- Transitioning from R&D to commercialisation with pilot production scaling
- Ongoing development of vegan leather-like biomaterial and horticultural applications
- Cash balance of $404,000 supports operations with estimated six quarters of funding
Strategic Capital Raise Bolsters Nanollose’s Growth Trajectory
Nanollose Limited (ASX: NC6), a pioneering biomaterials company, has announced a successful $2.1 million capital raise to underpin its transition from research and development into commercialisation. The funding package includes a $672,000 Placement, a $1.05 million Rights Issue, and a $400,000 fee-to-equity conversion by company directors, reflecting strong internal confidence in the company’s growth strategy.
Executive Chairman Dr Wayne Best emphasised the importance of this capital injection, noting it provides the financial strength necessary to advance Nanollose’s suite of sustainable fibre and soilless growth technologies. The funds will support ongoing R&D and commercial initiatives, particularly in fabrics, fibres, agricultural products, and innovative vegan leather alternatives.
Progress on Core Technologies: Nullarbor and Nufolium
Operationally, Nanollose has made significant strides with its Nullarbor and Nufolium fibre lines. The Nullarbor-20 fibre, produced from the third pilot production run, was successfully blended with wool to create yarn, demonstrating practical application potential. Despite a delay caused by typhoon damage at its China-based partner HGB’s facility, preparations for a fourth pilot spin are underway, aiming for higher volume and cellulose content.
Meanwhile, Nufolium-20 has received positive initial feedback from development partner Glatfelter. The company is progressing towards producing a trial batch of wet wipes in collaboration with Codi Group, signaling a move towards commercial product development in hygiene applications.
Expanding Horizons: Vegan Leather and Horticultural Innovations
Beyond fibres, Nanollose is advancing its vegan leather-like biomaterial, a plastic-free, animal-free alternative that aligns with growing consumer demand for sustainable fashion. The additional funding will accelerate R&D and commercial discussions in this space.
In parallel, the company is pursuing commercial opportunities for Biollose, its soilless growth medium designed for horticultural applications. Ongoing talks with potential partners in the indoor farming sector underscore Nanollose’s multi-channel development approach.
Financial Position and Outlook
At the end of December 2024, Nanollose held $404,000 in cash, with operational expenditure tightly managed at $66,000 for the quarter. The company estimates it has sufficient funding to support operations for over six quarters, providing a runway to execute its commercialisation plans.
Looking ahead, key priorities include completing the fourth pilot spin of Nullarbor fibre, advancing commercial partnerships for both fibre lines, and further developing the vegan leather and horticultural product lines. The upcoming shareholder meeting on 20 February 2025 will be critical for approving the second tranche of the Placement and director equity conversions.
With intellectual property protections in place, including a joint patent with Birla Cellulose, and pilot production facilities established in India, Nanollose is well-positioned to capitalize on the growing demand for sustainable biomaterials in textiles and agriculture.
Bottom Line?
Nanollose’s successful capital raise and product progress set the stage for a critical commercialisation phase, with market adoption and partner engagement now in focus.
Questions in the middle?
- Will the shareholder meeting approve the second tranche of the Placement and director equity conversions?
- How soon can Nanollose scale pilot production to commercial volumes for Nullarbor and Nufolium fibres?
- What are the timelines and potential partners for commercialising the vegan leather-like biomaterial?
