Mr. Paul Guedes reports

NANO ONE ANNOUNCES CLOSING OF AGREEMENT TO SELL AND LEASE BACK ITS CANDIAC BUILDING AND PROPERTY

Nano One Materials Corp. has successfully closed the transaction announced on Feb. 25, 2025, for the sale and leaseback of its Candiac building and surrounding property in Candiac, Que., for estimated net proceeds of $15.7-million. This transaction significantly strengthens the company's financial position while supporting long-term operational stability.

Highlights:

• $15.7-million in estimated net proceeds from sale of land and building in Candiac, Que.;
• Strengthened balance sheet leverages government funding announced in 2024;
• Supports capacity expansion at Candiac to over 1,000 tonnes per annum of LFP (lithium/iron/phosphate) cathode production;
• Ensures operational continuity and long-term stability.

Carlo Valente, chief financial officer of Nano One, commented: "This transaction reinforces our financial flexibility and ensures that we remain well positioned to advance our commercialization efforts. It enables us to leverage over $40-million in government funding while expanding our operations in alignment with our strategic vision."

Key terms

The transaction closed on Feb. 28, 2025, and includes a vendor loan of $2-million structured as a deferred payment secured by an immovable hypothec. Transaction costs inclusive of a lease security deposit are approximately $1.3-million, resulting in estimated net proceeds of $13.7-million at closing. The vendor loan incurs interest at 4 per cent per annum and the deferred payment is due $1-million plus interest upon the third anniversary and $1-million plus interest upon the sixth anniversary from the date of closing. In addition to the proceeds and pursuant to a capital investment agreement, a separate $3-million reserve will be financed by the purchaser and held in escrow to finance potential capital improvements, should the purchaser deem them necessary subsequent to closing.

As part of the transaction, Nano One has entered into a lease agreement for an initial term of 15 years, with renewal options for up to an additional 15 years. Additionally, the company retains a right of first offer should the purchaser decide to sell in the future, ensuring long-term stability for the company's operations.

About Nano One Materials Corp.

Nano One Materials is a technology company changing how the world makes cathode active materials for lithium-ion batteries. Applications include stationary energy storage systems (ESSs), portable electronics and electric vehicles (EVs). The company's patented One-Pot process reduces costs, is easier to permit, and lowers energy intensity, environmental footprint and reliance on problematic supply chains. The company is helping to drive energy security, supply chain resilience, industrial competitiveness and increased performance through process innovation. Scalability is proven and being demonstrated at Nano One's LFP (lithium-iron-phosphate) pilot production plant in Quebec -- leveraging the only facility and expertise of its kind outside of Asia. Strategic collaborations and partnerships with international companies such as Sumitomo Metal Mining, Rio Tinto and Worley are supporting a design-one/build-many licensing growth strategy -- delivering cost-competitive, easier-to-permit and faster-to-market battery materials production solutions around the world. Nano One has received funding from the government of Canada, the government of the United States, the government of Quebec and the government of British Columbia.

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