Quarterly Update
Perth, April 30, 2018 AEST (ABN Newswire) - Nanollose Limited (
ASX:NC6) (NC6 or the Company) is pleased to provide its Appendix 4C Cash flow Statement for the quarter ending 31 March 2018, together with the following operational update.
Highlights
- Fibre development activities continued to advance towards converting the Company's Plant-Free viscose-rayon fibre into a fabric, for use in textile and clothing applications
- Highly specialised research and development provider engaged to assist development
- Nanollose achieved a foundational first step towards securing an initial supply of microbial cellulose, the natural material required to create the Company's fibre at scale
- Due to increased focus on commercialisation and development, Dr Wayne Best joined the Company full time as Executive Chairman
During the quarter there was an increased focus on viscose-rayon development, whereby progress continued towards converting the Company's Plant-Free viscose-rayon fibre into a fabric for use across the global textile and clothing sectors.
If successful, the Company believes this fabric would become another Plant-Free world first, with the added benefit of being produced with less waste, and fewer natural resources than most other fabrics available today.
A highly specialised contract research and development provider has recently been engaged to provide the scale-up expertise and pilot scale fibre spinning equipment required to transition the Company's technology from the laboratory to a commercial scale.
Concurrently, during the quarter Nanollose met with a number of potential South East Asian suppliers of microbial cellulose, the raw material used create the Company's fibre. Following shortly afterwards in early April, a non-binding memorandum of understanding (MOU) was signed with Indonesian food producer, PT Supra Natami Utama (a subsidiary of PT Niramas Utama).
This MOU provides a framework towards developing a supply chain solution to produce textile grade microbial cellulose on a commercial scale, which can then be converted into fibres using the Nanollose technology.
This relationship has already resulted in a stockpile of 0.25 tons of microbial cellulose. Which is in preparation for initial pilot scale operations to produce commercial samples of fibre and fabric for potential customers to evaluate.
As focus on commercialisation and development increased over the quarter, Nanollose Chairman, Dr Wayne Best, was engaged as Executive Chairman on a full-time basis in early April. Dr Best brings considerable experience in the management and commercialisation of research and development to the Company.
The Company also recently announced an offer of a pro-rata non-renounceable entitlement issue of up to approximately 18,749,999 Entitlement Options, on the basis of 1 Entitlement Option for every 4 Shares held by Eligible Shareholders at an issue price of 1 cent per Entitlement Option, to raise up to approximately $187,500. The offer closes at 5:00pm WST on 18 May 2018.
OUTLOOK
The Company has been invited to present at the prestigious "Planet Textile" exhibition in Vancouver on 22 May. Planet Textile is the world's leading sustainable textile event and is an excellent opportunity for Nanollose to launch its world-first Plant-Free viscose-rayon onto the world stage.
This event will also provide a significant opportunity for Nanollose to engage with International fashion retailers / brands, buying houses, wholesalers, importers, sourcing agents and manufacturers of apparel fabrics and garments.
The Company continues to receive enquires from a range of leading fibre, textile and apparel manufacturers wanting to evaluate its Plant-Free viscose-rayon fibre. The Company is working towards having sufficient fabric to provide commercial samples to these potential customers.
About Nanollose Limited
Nanollose Limited (ASX:NC6) is an innovative Australian company that uses a low cost and eco-friendly fermentation process to grow fibres that could become a sustainable alternative to conventional plant-derived cellulose fibres. The Company's process, which uses streams from various large-scale industries like sugar, wine and food, has the ability to produce 'Plant-Free' Cellulose. Cellulose is the hidden building block polymer most consumers know nothing about, but forms a huge part of items used in their everyday life such as clothing, paper and hygiene products.
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