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

Except for statements of historical fact, this press release contains certain “forward-looking information” within the meaning of applicable securities laws. Forward-looking information is often characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other words similar, or statements that certain events or conditions “may” or “will” occur. In particular, the forward-looking information contained in this press release includes, but is not limited to, the expected future performance of the Company. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Accordingly, there can be no assurance that the actual results achieved will be the same, in whole or in part, as those set forth in the forward-looking information. Forward-looking information is based on the opinions and estimates of management as of the date the statements are made, and is subject to a variety of risks and uncertainties and other factors that could cause events or actual results differ materially from those anticipated in the forward-looking information. – search for information. Some of the risks and other factors that could cause actual results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada, the United States and around the world; industry conditions, government regulations, including environmental regulations; unexpected operating events or performance; failure to obtain consents and approvals from industry partners and other third parties, if any; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; competition for, among other things, capital, skilled personnel and supplies; changes in tax laws; and other risk factors disclosed under our profile on SEDAR at Readers are cautioned that this list of risk factors should not be considered exhaustive.

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