Nanollose (ASX:NC6), a biomaterials enterprise, has declared a strategic capital raise to further its commercialisation strategy.
The initiative encompasses commitments from four sophisticated investors, injecting $672,000 through a placement of 42 million fully paid ordinary shares at 1.6 cents per share.
The capital raise includes a two-tranche placement.
Tranche 1 aims to raise $400,000, while Tranche 2, subject to shareholder approval, targets an additional $272,000.
Concurrently, Nanollose will execute a non-renounceable rights issue to raise approximately $1.1 million before costs.
Dr. Wayne Best, Executive Chairman of Nanollose, commented on the capital raise, stating, "We are pleased to announce this strategic capital raise, including a placement which was strongly supported by a small group of sophisticated investors and the associated rights issue.
"This initiative will provide the company with exceptional financial flexibility and allow the company to move forward more rapidly and with confidence," Best added.
The funds will support the company's ongoing research and development projects in fabrics, fibres, agricultural products, and vegan leather, alongside working capital needs.
Additionally, Nanollose directors Wayne Best and Winton Willesee will convert $200,000 in outstanding fees to equity, subject to shareholder approval.
Nanollose is a biomaterials company engaged in commercialising scalable technology to create fibres, fabrics, and other novel materials with minimal environmental impact.
At the time of reporting, Nanollose's share price was $0.022.