- Nanollose (NC6) has invested $200,000 to purchase a 20 per cent holding in joint venture start-up, CelluAir
- CelluAir was formed by the Queensland University of Technology (QUT) and Innovyz to commercialise an advanced filtration technology (AFT) based on nanocellulose
- The investment gives Nanollose the potential to enter the personal protective equipment market within which the face mask market alone has reached US$11 billion (roughly A$15.4 billion) this year
- Additionally, the money will allow CelluAir to potentially replace its plant-based nanocellulose with Nanollose's eco-friendly, plant-free process
- Further, Nanollose will raise $660,000 through a placement
- Company shares are up 7.35 per cent and are trading for 7.3 cents at midday trade
Nanollose (NC6) has made a $200,000 strategic investment to purchase a 20 per cent holding in CelluAir.
CelluAir is an Australian-based joint venture company between the Queensland University of Technology (QUT) and Innovyz. It was formed to develop and commercialise an advanced filtration technology (AFT) based on nanocellulose.
Following years of validation, a patent application was submitted in July this year.
There are multiple applications for the AFT and these exist within the medical, construction and air treatment industries which provide significant opportunities for the company.
Nanollose will use its investment to scale the AFT using off-the-shelf commercial equipment as well as initiating discussions with potential sales and distribution partners.
Further, the money will allow CelluAir to investigate the potential of replacing its plant-based nanocellulose with Nanollose's microbial nanocellulose.
Nanollose is committed to using an eco-friendly fermentation process to grow fibres instead of the industry standard cellulose fibres that come from plants.
Cellulose is the hidden polymer building block that forms a huge part of items used in everyday life such as clothing, paper and hygiene products.
"We are pleased to have invested in a seed capital raise for CelluAir, as strong synergies exist between the two companies, and we believe in the potential of nanocellulose across multiple industries and applications," Nanollose Executive Chairman Dr Wayne Best said.
The investment will also allow the company to potentially enter the high-growth personal protective equipment market. The face mask market alone has reached US$11 billion (roughly A$15.4 billion) this year and this is only set to keep growing.
QUT Executive Director of Industry Engagement Erin Rayment is also pleased with the strategic investment.
"QUT is pleased to have received this strategic investment from Nanollose – an ASX listed company developing tree-free cellulose, hence it is a natural fit with QUT spinout, CelluAir, which also works in the nanocellulose area," Erin said.
Nanollose has also agreed to issue 12 million fully paid ordinary shares at 5.5 cents through a placement to sophisticated and professional investors introduced by PAC Partners Securities. The company will raise $660,000.
Additionally, 2.4 million options will be issued to PAC Partners or its nominees at 10 cents each. The options will expire on November 30 2021. However, this is subject to approval which will be sought at the upcoming annual general meeting.
Company shares are up 7.35 per cent and are trading for 7.3 cents at midday trade.