Earlier this month, Montreal-based NanoXplore announced its intentions to become a publicly traded company on the Toronto stock exchange by what has been termed an “arm’s length reverse take over" of Graniz Mondal Inc. This transaction will amount to NanoXplore taking the place held by Graniz on the Toronto stock exchange as a publicly traded company.
“You have two ways to go public: You can do it through an initial public offering. Or you can do a transaction with an already existing company in the public markets, which is a so-called shell and use that shell to become public,” explained Soroush Nazapour, president and CEO of NanoXplore in an interview with The Graphene Council.
Nazapour estimates that the transaction should be completed by the end of August at which time NanoXplore will begin trading.
The minimum amount of capital that has to be raised through the public offering will be $2 million. However, Nazapour expects that the company will raise capital far above that figure, which will go to provide working capital and also support the $10-million Sustainable Development Technology Canada (SDTC) program it was awarded last year.
The SDTC program is an attempt by the Canadian government to develop graphene-enabled polymers that could replace metal components in electric vehicles for reducing weight. Developing polymers that have the electrical, thermal and mechanical properties of metals has been a challenge, and the aim of this project will be to see if graphene can lead to polymers with these properties. This project is expected to last a total of five years.
“In the automotive industry a lot of parts are either metals or plastics that don't have the performance required,” explained Nazapour. “So what we're doing is adding graphene to the plastic to improve the performance of those plastics and replacing the metal with these improved plastics.”
In the video below, the rationale for pursuing graphene-enabled polymers, especially for transportation applications, is laid out.
While the SDTC program could eventually lead to an entirely new business segment for the company, NanoXplore has announced top line revenues of $2.5 for the first nine months of this fiscal year. Nazapour expects that growth rate to continue until the end of the fiscal year, leading to approximately $3 million in top line revenues. These revenues are generated from the graphene-enabled buoys that are used in aquaculture industry.
Nazapour expects that the capital generated from being publicly traded will support these ongoing operations as well as the SDTC program. But he is also looking ahead to further developing NanoXplore’s ambitions to manufacture graphene-enabled Li-ion batteries.
In addition to the pending introduction to the Toronto exchange, NanoXplore also has a new website from when we last interviewed Paul Higgins, the chief operating officer at the beginning of this year. With the new website also comes a new corporate logo.