NanoXplore has also announced that it has entered into an updated Memorandum of Understanding (“MOU”) with Martinrea International, which is expected to further develop the commercial relationships between the companies. The MOU provides for increased collaborations between NanoXplore and Martinrea, including commitments by NanoXplore to provide graphene to Martinrea and to assist in the development of graphene-related products and technologies. Martinrea will also assist NanoXplore in the future development of its operations. Furthermore, Martinrea will subscribe for approximately $15 million as part of the Equity Offering. After giving effect to the Equity Offering, Martinrea is expected to own approximately 16% of the issued and outstanding common shares of NanoXplore.
NanoXplore intends to use the net proceeds of the fund-raise for capital expenditures to expand the existing graphene production plant, add new production lines, purchase equipment, increase working capital and for general corporate purposes.