How Nanollose’s $2.1M Raise Fuels Biomaterial Pilots Amid Rising Losses

Financial Performance and Going Concern

Nanollose Limited (ASX – NC6) closed FY2025 with a net loss of $1.43 million, marking a 23.3% increase from the previous year’s $1.16 million loss. The company reported no revenue from ordinary activities during the period, reflecting its ongoing status as a research and development-focused biomaterials company. Despite the widening loss, Nanollose’s directors affirm the company’s ability to continue as a going concern, supported by recent capital raises and strategic initiatives.

Progress in Biomaterial Pilots

Operationally, Nanollose made notable strides in advancing its microbial cellulose technology. The company successfully completed pilot production of its Nufolium fibre, supplying 110 kilograms to Magnera Corporation (formerly Glatfelter), a global leader in engineered materials. Magnera converted this batch into nonwoven fabric rolls, which were subsequently used by Codi Group to produce trial wet wipe samples. Early feedback on these wipes has been positive, setting the stage for further development in FY2026.

In parallel, Nanollose collaborated with Waverley Mills to produce approximately 70 blankets blending 30% Nullarbor-20 fibre with 70% Australian merino wool. This pilot demonstrated the fibre’s compatibility with premium textiles and manufacturing processes. Post-reporting period, one blanket and a Lee Mathews-designed top made from Nullarbor fibre were selected for exhibition at the National Gallery of Victoria, highlighting the material’s cultural and commercial potential.

Advancements in Biollose and Vegan Leather

The company also refined its Biollose MicroGel formulation for microgreen production, aligning the product with industry practices through trials at Greenspace and manufacturing partner visits in China. Additionally, Nanollose progressed its biobased nonwoven material as a sustainable alternative to conventional and synthetic leathers. A collaboration with South Metropolitan TAFE culminated in the creation of an Haute Couture garment showcased at Fremantle Design Week, underscoring the material’s versatility and appeal.

Capital Raising and Leadership Changes

To underpin these commercialisation efforts, Nanollose raised $2.1 million through a strategic placement and a 1-for-3 non-renounceable rights issue, attracting four sophisticated investors. This capital injection has enhanced the company’s balance sheet flexibility, enabling recruitment of additional technical and managerial resources. Notably, post-year-end, Andrew Moullin was appointed CEO and Managing Director. Moullin brings over 20 years of legal, commercial, and corporate leadership experience, with a focus on strategic execution and governance. His leadership is expected to accelerate Nanollose’s transition from R&D to commercialisation.

Further strengthening the financial position, the company secured a $750,000 funding commitment from Fiftyone Capital through the exercise of 30 million existing options, to be executed in tranches through March 2026. The appointment of Scott Williams from Fiftyone Capital as Corporate Advisor aims to support market engagement and commercial discussions.

Outlook and Strategic Focus

Looking ahead to FY2026, Nanollose plans to scale up production of its Nullarbor fibres in partnership with Birla Cellulose, targeting increased volumes and higher microbial cellulose content. The company will continue engaging fashion brands to secure off-take agreements and advance its Biollose technology for vertical farming applications. Development of its animal-free, plastic-free leather alternatives remains a priority, reflecting growing market demand for sustainable materials.

While Nanollose remains in the pre-revenue phase and continues to incur losses, its recent operational milestones, capital raises, and leadership enhancements position it to pursue commercialisation opportunities with renewed momentum.