Nanollose Reports $1.53M Half-Year Loss Amid $750K Capital Raise

Financial Performance and Capital Position

Nanollose Limited has reported a significant increase in its half-year loss, with the net loss after tax reaching $1.53 million for the six months ended 31 December 2025, more than doubling the $725,681 loss recorded in the previous corresponding period. The company’s cash reserves have declined to $274,973, down from $617,318 at the end of June 2025, and it now carries net liabilities of $169,751. Despite these figures, the board remains confident in the company’s ability to continue as a going concern, citing ongoing capital raising efforts and cost management strategies.

Operational Progress: Pilot Production and Technology Development

Operationally, Nanollose has made notable strides in its proprietary Nullarbor™ lyocell fibre technology. The company successfully completed its fourth pilot production spin, producing a combined total of 580 kilograms of Nullarbor-25 and Nullarbor-30 fibres. This milestone is particularly important as it incorporates an improved washing and treatment process developed in collaboration with its supply partner, Hainan Guangyu Biotechnology. This refinement streamlines the integration of microbial cellulose feedstock into existing lyocell production lines, reducing barriers for industry adoption.

The microbial cellulose was shipped to Birla Cellulose in India, where it cleared customs and was prepared for specification testing and fibre spinning. The success of this pilot production phase is expected to inform Nanollose’s broader development and scale-up strategy throughout 2026.

Capital Raising and Incentives

During the period, Nanollose secured a firm commitment from Fiftyone Capital to raise $750,000 through the early exercise of 30 million existing options, providing a vital working capital boost. Post period, the company also received a $311,000 research and development rebate, further supporting its financial position.

The company’s new CEO and Managing Director, Andrew Moullin, who commenced shortly after the half began, was granted performance rights and options as part of his remuneration package. These incentives are tied to key milestones including commercial contracts, offtake agreements, and revenue targets, aligning executive rewards with shareholder value creation.

Intellectual Property Expansion

Nanollose has also advanced its intellectual property portfolio significantly. The company filed national phase patents in 12 jurisdictions for its Biollose™ dewatering technology and secured new patent grants in Japan, Canada, and South Korea across its lyocell, viscose, and horticultural media patent families. With 14 granted patents worldwide and 8 registered trademarks, Nanollose is building a robust foundation to support future licensing and commercialisation efforts.

Looking Ahead

While the company faces financial challenges, including a material uncertainty regarding its ability to continue as a going concern, Nanollose is actively managing its cash flow and pursuing additional capital through equity markets. The successful pilot production and strengthened IP position provide promising signals for the company’s strategic priorities in the coming quarters.