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NANO Nuclear completes $36 million public offering

Published 10/28/2024, 08:08 AM
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NEW YORK - NANO Nuclear Energy Inc. (NASDAQ:NNE), an advanced nuclear energy technology company, has announced the closure of a $36 million public offering. The company sold over 2 million shares of common stock, including warrants for additional shares, at a price of $17.00 per share.

This recent offering follows two previous capital raises earlier this year, bringing the total gross proceeds to over $65 million. The funds are earmarked for product research and development, marketing, regulatory compliance, and the expansion of the company's workforce and facilities, particularly its new Nuclear Technology Headquarters in Oak Ridge, Tennessee.

NANO Nuclear, which touts itself as a leader in portable nuclear microreactor technology in the U.S., plans to invest in the development of its ZEUS™ and ODIN™ microreactors, as well as in nuclear fuel transportation design and other technological advancements.

The offering's underwriter retains an option to purchase additional shares until November 22, 2024, and the warrants provided are exercisable immediately with a five-year term. The net proceeds, after underwriting commissions and offering expenses, are expected to be approximately $32.6 million.

The Benchmark Company, LLC served as the book-running representative for the offering, while Ellenoff Grossman & Schole LLP and Lucosky Brookman LLP acted as legal counsel for NANO Nuclear and The Benchmark Company, respectively.

NANO Nuclear's portfolio includes subsidiaries focused on nuclear fuel fabrication, transportation, and industry consulting services. Withum Smith+Brown PC are the company's registered independent auditors.

This press release does not constitute an offer to sell or a solicitation of an offer to buy securities. The offering was made through a registration statement filed with the Securities and Exchange Commission, which is available for review on the SEC's website.

The information in this article is based on a press release statement from NANO Nuclear Energy Inc.

In other recent news, NANO Nuclear Energy Inc. has announced the pricing of a public offering expected to generate around $36 million, which will fund the company's research, development, and expansion efforts. The company has also made significant leadership changes, appointing Jiang (Jay) Yu as President and John G. Vonglis, former CFO of the U.S. Department of Energy, as Chairman of its Executive Advisory Board for Strategic Initiatives.

NANO Nuclear has expanded its team with the addition of Professor Andrew W. Woods and Alejandra de Lara, Ph.D., to advance the development of its ODIN™ microreactor. Furthermore, Carlos O. Maidana, Ph.D. has been appointed as Head of Thermal Hydraulics and Space Program, leading the subsidiary NANO Nuclear Space, focusing on commercial applications of nuclear technology in space exploration.

The company has formed a new subsidiary, NANO Nuclear Space Inc., to explore potential uses of micronuclear reactors in cis-lunar space and has teamed up with GNS Gesellschaft für Nuklear-Service mbH to develop a transportation system for High-Assay Low-Enriched Uranium (HALEU). These recent developments highlight NANO Nuclear's commitment to advancing its nuclear technology solutions.

InvestingPro Insights

NANO Nuclear Energy Inc. (NASDAQ:NNE) has recently made waves with its successful $36 million public offering, but a closer look at the company's financial metrics and market performance reveals a more nuanced picture.

According to InvestingPro data, NANO Nuclear's market capitalization stands at $618.47 million, reflecting investor interest in the company's advanced nuclear technology prospects. However, the company is not yet profitable, with a negative operating income of $8.76 million for the last twelve months as of Q3 2024.

Despite the lack of profitability, NANO Nuclear's stock has shown remarkable momentum. InvestingPro Tips highlight that the stock has delivered a strong return over the last month, with a 27.95% price increase. Even more impressive is the 269.56% return over the past six months, aligning with the company's recent capital raising activities and expansion plans.

It's worth noting that NANO Nuclear's stock trades at a high Price to Book multiple of 47.56, suggesting investors are placing a premium on the company's future potential rather than its current book value. This aligns with the speculative nature of the advanced nuclear technology sector.

InvestingPro Tips also indicate that NANO Nuclear holds more cash than debt on its balance sheet, which could provide financial flexibility as the company invests in research and development for its ZEUS™ and ODIN™ microreactors.

For investors seeking a deeper understanding of NANO Nuclear's prospects, InvestingPro offers 13 additional tips, providing a more comprehensive analysis of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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