Australian biotech firm Nanollose is preparing to transition much of its operations from research and development into commercialisation thanks to a successful $2.1 million capital raise.
This includes firm commitments for a $672,000 placement alongside a $1.05 million rights issues for eligible shareholders, and a $400,000 fee-to-equity conversion by Nanollose Directors.
The biotech firm generates biomaterial, some of which has applications in the fashion space. This includes its Nullarbor-20 fibre produced from a third pilot spin completed in December 2023. Mostly recently, a sample of the product was successfully blended with wool to produce a yarn.
Nanollose has also been working on producing another batch of microbial cellulose with its China-based development partner, HGB, for the fourth pilot spin, with work reportedly delayed in the fourth quarter of 2024 to fix damage to the HGB facility caused by a typhoon.
The business is also aiming to produce a trial batch of wet wipes following the creation of its first batch of Nufolium-20.
Nanollose is also planning to commercialise production of a vegan leather-like biomaterial.
Executive chairman Dr Wayne Best said the strategic funding will provide the company with the balance sheet strength it needs and to focus on developing and commercialising its projects in a timely manner.
“We continue to receive excellent feedback from potential partners on our Nullarbor and Nufolium fibres and this remains the main focus of our near term commercialisation workstreams,” he said.
“However, we are also excited about the potential of our vegan leather-like biomaterial, and this additional new funding will allow us to pursue R&D and commercial opportunities for this innovative product more vigorously.
“Discussions with potential commercial partners in the horticulture sector also remain ongoing, and we look forward to providing further updates on our multi-channel development strategy early in 2025.”