Nano Nuclear Energy Inc. has entered into a definitive agreement with several institutional investors for a private placement of common stock totalling $105mn. The transaction aims to support the company’s initiatives in advanced nuclear technologies, particularly its micro-reactor projects.
Participation of major institutional investors
The private placement includes the sale of 3,888,889 common shares at a price of $27.00 each, according to a company statement released on May 27. Participants include a long-only mutual fund and a preeminent global investment manager. The securities issued in this transaction are not registered under the Securities Act of 1933 and may not be sold in the United States without prior registration or an applicable exemption.
The closing of the transaction is expected around May 28, subject to customary closing conditions. The net proceeds will allow Nano Nuclear to increase its cash position to more than $200mn, which it plans to use to support the development of compact reactors and pursue complementary acquisitions.
Industrial objectives and growth strategy
The company plans to use the raised funds to accelerate development milestones toward initial revenue generation. Nano Nuclear also stated it intends to expand its auxiliary nuclear-related operations, without disclosing specific details.
Titan Partners Group, a division of American Capital Partners, is acting as the exclusive placement agent for this transaction. The company has agreed to file a resale registration statement with the Securities and Exchange Commission (SEC) to allow for the resale of the issued common shares.
Nano Nuclear Energy Inc. is listed on Nasdaq under the ticker symbol NNE. No information was provided regarding post-investment valuation or the long-term intentions of the participating investors.
