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NANO Nuclear Energy Announces Closing of Full Over-Allotment Option from Initial Public Offering

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NANO Nuclear Energy, an advanced nuclear technology company, announced the successful closing of the sale of an additional 384,375 shares at $4.00 per share. This follows the full exercise of the underwriter’s over-allotment option related to its initial public offering (IPO), which closed on May 10, 2024. The total gross proceeds from the IPO were approximately $11.787 million, with net proceeds around $10.461 million. Traded under the symbol NNE on the Nasdaq Capital Market, NANO Nuclear designs portable microreactors producing 1 to 5 megawatts of thermal energy. The net proceeds will be utilized for R&D of its microreactor designs 'ZEUS' and 'ODIN', developing a domestic HALEU fuel fabrication pipeline, and general corporate purposes.

Positive
  • Successful sale of additional 384,375 shares at $4.00 per share.
  • Gross proceeds from IPO were approximately $11.787 million.
  • Net proceeds from IPO were approximately $10.461 million.
  • Focus on the design and development of portable nuclear microreactors producing 1 to 5 megawatts.
  • Net proceeds will fund R&D for microreactor designs 'ZEUS' and 'ODIN'.
  • Development of a domestic HALEU fuel fabrication pipeline.
  • NANO Nuclear aims to become diversified and vertically integrated.
Negative
  • Underwriting discounts, commissions, and other offering expenses reduce gross proceeds.
  • Uncertainty about the profitability and commercial success of new technology.
  • Market competition and regulatory hurdles in the advanced nuclear industry.

NANO Nuclear Energy's announcement that it has successfully closed its over-allotment option following its initial public offering (IPO) is noteworthy. The sale of an additional 384,375 shares at $4.00 per share brings the total gross proceeds from the IPO to approximately $11,787,500. After deducting underwriting discounts and other expenses, the net proceeds amount to around $10,460,560. This significant capital infusion is essential for NANO Nuclear's plans to advance research and development (R&D) of its proprietary microreactor designs, ZEUS and ODIN.

For investors, the key aspect to consider is how effectively NANO Nuclear will allocate these funds. Given that microreactor technology holds promise for producing clean energy, the successful commercialization of NANO Nuclear's R&D efforts could position the company favorably in an emerging market. However, investors should also be aware of the high R&D costs and regulatory challenges inherent in the nuclear sector. Therefore, while the capital raised is a positive sign, the subsequent execution will be important for long-term value creation.

From a market perspective, NANO Nuclear's strategy to integrate multiple streams of revenue, including microreactor development, nuclear fuel fabrication and transportation, indicates a robust business model aimed at mitigating risk and enhancing revenue stability. The company's emphasis on HALEU (High-Assay, Low-Enriched Uranium) fuel is strategically important, given the U.S. Department of Energy's support for HALEU as a critical component for advanced nuclear reactors.

The commitment to becoming a diversified and vertically integrated entity could prove advantageous, as it allows NANO Nuclear to capture value across different parts of the nuclear fuel cycle. This approach not only enhances operational control but also provides resilience against market fluctuations. However, the market's response will hinge on the company's ability to meet its development milestones and regulatory requirements.

NANO Nuclear’s focus on developing portable microreactors capable of producing 1 to 5 megawatts of thermal energy is aligned with ongoing trends towards smaller, more flexible energy solutions. These microreactors can provide localized power, making them suitable for remote locations or as a complement to renewable energy sources. Furthermore, the endeavor to create a domestic HALEU fuel source addresses a critical supply chain issue, potentially placing NANO Nuclear at the forefront of advanced nuclear technology.

However, the nuclear technology sector is heavily regulated and any delays or hurdles in obtaining necessary approvals could impact project timelines and financial performance. Moreover, the technological feasibility and economic viability of their microreactors are yet to be fully demonstrated at scale. Investors should remain cautiously optimistic, acknowledging both the promising potential and the inherent risks.

New York, N.Y., May 22, 2024 (GLOBE NEWSWIRE) -- NANO Nuclear Energy Inc. (NASDAQ: NNE) (“NANO Nuclear”), an emerging vertically integrated microreactor and advanced nuclear technology company led by a world-class nuclear engineering team developing proprietary, portable, and clean energy solutions, is pleased to announce the closing today of the sale of an additional 384,375 shares of its common stock at $4.00 per share pursuant to the full exercise of underwriter’s over-allotment option granted in connection with the NANO Nuclear’s initial public offering which closed on May 10, 2024.

The gross proceeds from NANO Nuclear’s initial public offering, inclusive of the full over-allotment exercise, before deducting underwriting discounts and commissions and other offering expenses, were approximately $11,787,500, and net proceeds were approximately $10,460,560.

NANO Nuclear’s common stock is traded on the Nasdaq Capital Market under the symbol “NNE”.

NANO Nuclear believes that it is the first U.S. publicly listed company focusing on the design and development of portable, nuclear microreactors. According to the U.S. Department of Energy, microreactor designs vary, but most are designed to produce 1 to 20 megawatts of thermal energy that could be used directly as heat or converted to electric power. NANO Nuclear’s current microreactor designs are for reactors that would produce 1 to 5 megawatts. In addition, unlike other small or micro nuclear reactor companies, NANO Nuclear is seeking to become diversified and vertically integrated with multiple potential streams of revenue, including microreactor development, nuclear fuel fabrication and nuclear fuel transportation.

NANO Nuclear intends to use the net proceeds from its initial public offering to continue the research and development of its proprietary microreactor designs, ‘ZEUS’ and ‘ODIN’; advance its exclusive patented license to transport commercial quantities of HALEU fuel needed for the future of the advanced nuclear industry; develop a domestic source for a High-Assay, Low-Enriched Uranium (HALEU) fuel fabrication pipeline for NANO Nuclear’s own microreactors and the broader advanced nuclear reactor industry, as well as general corporate purposes and working capital.  

The Benchmark Company, LLC acted as the sole book-running representative for the offering. Ellenoff Grossman & Schole LLP acted as counsel to NANO Nuclear. Lucosky Brookman LLP acted as counsel to The Benchmark Company. Withum Smith+Brown PC are NANO Nuclear’s registered independent auditors.

A registration statement relating to NANO Nuclear’s initial public offering was filed with the Securities and Exchange Commission and was declared effective on May 6, 2024. This registration statement can be obtained by visiting the SEC website at www.sec.gov. Please see such registration statement for additional information regarding NANO Nuclear.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About NANO Nuclear Energy Inc.

NANO Nuclear Energy Inc. (NASDAQ: NNE) is an emerging, advanced technology-driven nuclear energy company seeking to become a commercially focused, diversified, and vertically integrated company across four business lines: (i) cutting edge portable microreactor technology, (ii) nuclear fuel fabrication, (iii) nuclear fuel transportation and (iv) nuclear industry consulting services. NANO Nuclear believes it is the first nuclear microreactor company to be listed publicly in the U.S.

Led by a world-class nuclear engineering team, NANO Nuclear’s products in technical development are “ZEUS”, a solid core battery reactor, and “ODIN”, a low-pressure coolant reactor, each representing advanced developments in clean energy solutions that are portable, on-demand capable, advanced nuclear microreactors.

Advanced Fuel Transportation Inc. (AFT), a NANO Nuclear subsidiary, is led by former executives from the largest transportation company in the world aiming to build a North American transportation company that will provide commercial quantities of HALEU fuel to small modular reactors, microreactor companies, national laboratories, military, and DOE programs. Through NANO Nuclear, AFT is the exclusive licensee of a patented high-capacity HALEU fuel transportation basket developed by three major U.S. national nuclear laboratories and funded by the Department of Energy. Assuming development and commercialization, AFT is expected to form part of the only vertically integrated nuclear fuel business of its kind in North America.

HALEU Energy Fuel Inc. (HEF), a NANO Nuclear subsidiary, is focusing on the future development of a domestic source for a High-Assay, Low-Enriched Uranium (HALEU) fuel fabrication pipeline for NANO Nuclear’s own microreactors as well as the broader advanced nuclear reactor industry.

For more corporate information please visit: https://NanoNuclearEnergy.com/

For further information, please contact:

Email: IR@NANONuclearEnergy.com
Business Tel: (212) 634-9206

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Cautionary Note Regarding Forward Looking Statements

This news release and statements of NANO Nuclear’s management in connection with this news release or related events contain or may contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements mean statements related to future events, which may impact our expected future business and financial performance, and often contain words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “potential”, “will”, “should”, “seek,” “could”, “would” or “may” and other words of similar meaning. These forward-looking statements (including statements regarding our business plans and objectives as described herein) are based on information available to us as of the date of this news release and represent management’s current views and assumptions. Forward-looking statements are not guarantees of future performance, events or results and involve known and unknown risks, uncertainties and other factors, which may be beyond our control. For NANO Nuclear, particular risks and uncertainties that could cause our actual future results to differ materially from those expressed in our forward-looking statements include but are not limited to the following: (i) the early-stage nature of our company and the significant time and funding it will take to reach the regulatory approval and revenue generating stages; (ii) risks related to our U.S. Department of Energy (“DOE”) nuclear fuel manufacturing submission and the development of new or advanced technology, including difficulties with design and testing, cost overruns, development of competitive technology, (iii) our ability to obtain contracts and funding to be able to continue operations; (iv) risks related to uncertainty regarding our ability to commercially deploy a competitive advanced nuclear microreactor technology, (iv) risks related to the impact of government regulation and policies including by the DOE and the U.S. Nuclear Regulatory Commission; and similar risks and uncertainties associated with the business of an early-stage up business operating a highly regulated industry. These risk factors may not constitute all factors that could cause actual results to differ from those discussed in any forward-looking statement. Also, these and other risks concerning our programs and operations are described in additional detail in our Registration Statement on Form S-1, which was declared effective on May 6, 2024, and our other SEC filings, which can be accessed at https://www.sec.gov and our website at https://ir.nanonuclearenergy.com/financial-information/sec-filings. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release, and all forward-looking statements should not be relied upon as a predictor of actual results. We do not undertake and expressly disclaim any obligation to update our forward-looking statements to reflect events or circumstances that may arise after the date of this news release, except as required by law. 


FAQ

What does NANO Nuclear Energy's IPO closing encompass?

NANO Nuclear Energy's IPO closing includes the sale of an additional 384,375 shares at $4.00 per share, resulting in gross proceeds of approximately $11.787 million and net proceeds of around $10.461 million.

What is the stock symbol for NANO Nuclear Energy?

The stock symbol for NANO Nuclear Energy is NNE, traded on the Nasdaq Capital Market.

What is the focus of NANO Nuclear Energy's technology?

NANO Nuclear Energy focuses on the design and development of portable nuclear microreactors producing 1 to 5 megawatts of thermal energy.

How will NANO Nuclear Energy utilize the net proceeds from its IPO?

NANO Nuclear Energy will use the net proceeds for R&D of its microreactor designs 'ZEUS' and 'ODIN', developing a domestic HALEU fuel fabrication pipeline, and general corporate purposes.

What are the potential revenue streams for NANO Nuclear Energy?

Potential revenue streams include microreactor development, nuclear fuel fabrication, and nuclear fuel transportation.

Nano Nuclear Energy Inc.

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