California Nanotechnologies Announces Revised Lending Terms with Omni-Lite
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Los Angeles, Calif.–(Newsfile Corp. – May 25, 2022) – California Nanotechnologies Corp. (TSXV: CNO) (OTC Pink: CANOF) (“Cal Nano” or the “Company”) is pleased to announce that it has revised the terms of its loan with Omni-Lite Industries Canada Inc. ( “Omni Lite”).
Omni-Lite, the founding shareholder of Cal Nano, holds an approximate 19% stake in Cal Nano. Additionally, Omni-Lite has made two loans to CalNano since Cal Nano’s inception, which now total approximately US$1.45 million. The larger of the two loans, approximately US$1.2 million (including accrued interest), has not paid cash interest since it was originally advanced. CalNano also has a senior secured term loan with Manufacturers Bank, which has been reduced in quarterly installments and is expected to be fully repaid in February 2023.
Cal Nano has seen a gradual improvement in its operating results in recent years. More recently, the company announced that it achieved record revenue in the quarter ending February 28, 2022 (Q4/F2022) of approximately $470,000. This quarterly revenue is significantly higher than revenue for any quarter previously reported. During the quarter, the Company delivered most of one order from its thermoelectric customer, as reported in previous press releases. In addition, the Company also continued to successfully meet product demand from other customers in the normal course of business.
Thermoelectricity is a “green” technology that involves generating electricity from waste heat from other processes. Thermoelectricity is a large and well-established industry where a key performance measure is the efficiency of the process that converts waste heat into electricity. Cal Nano’s customer is working on a new thermoelectric generator with improved efficiency. In order to improve the efficiency of the device, the customer engaged Cal Nano, which is perhaps the only commercial third-party spark plasma sintering (“SPS”) service provider in North America, to provide SPS services for parts for its prototype aircraft. .
Cal Nano is in discussions with the thermoelectric customer regarding follow-up production orders. The customer has indicated interest in increasing ongoing production orders beginning in late 2022. Cal Nano is beginning to evaluate the facilities that would be required to meet potential customer demand.
In light of CalNano’s improved performance, Omni-Lite and CalNano have renegotiated and repriced intercompany loan agreements. The interest rate has been reset to 7.5% (from 2.9% under the previous agreement) and the loan maturity is now set for May 30, 2025. In addition, CalNano will begin loan payments. interest in June 2022, with principal repayments commencing with the Manufacturers Bank Term Loan early next year.
Cal Nano is the only North American provider of commercial SPS services. With multiple systems in-house, Cal Nano is able to manufacture parts from advanced materials in multiple sizes and shapes at production scale. The SPS is used to transform powders into solid parts using pulsating direct current and high pressure. Due to its unique heating method, it is superior for sintering nanomaterials and advanced nanomaterials that will go into the next generation of improved products in the aerospace, green energy and defense industries.
For more information, please contact:
Eric Eyerman, CEO
Such. : (562)-991-5211
E: [email protected]
Notice to readers
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/125196