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ROMEOVILLE, IL – Mineral-based healthcare solutions company NanoPhase Technologies Corporation (OTCQB: NANX) has entered into a $6 million equity deal with Strandler LLC, an affiliate of principal shareholder Bradford T. Kennedy. It was announced that the financing agreement had been completed. Whitmore.
The investment is structured as convertible preferred stock and will add 15 million shares of Nanophase common stock at a conversion price of $0.40 per share, subject to stockholder approval and authorization of additional common stock. there is a possibility.
The agreement provides that Strandler will hold the converted common shares for a minimum of one year from the date of conversion. Additionally, as part of the transaction, Whitmore affiliates Strandler, LLC and Beachcorp, LLC agreed to extend the maturity of the company's existing financing through October 1, 2025.
Nanophase President and CEO Jess Jankowski reports the company's fourth quarter 2023 financial performance was below expectations, with a 2023 net loss of $2.1 million and annual revenue of $37.3 million. admitted that it had been done. Legal costs related to the lawsuit with BASF accounted for 30% of the annual loss. The company experienced an operating cash shortage due to losses in the fourth quarter and increased working capital requirements, which was further exacerbated by raw material shortages in early January.
Despite these challenges, Jankowski remains optimistic about the future, with shipments completed and confirmed purchase orders exceeding $30 million, and he expects the company to be profitable in the second half of 2024. ing. This funding is expected to strengthen the company's management and maintain its growth strategy.
Nanophase plans to release its full 2023 financial statements on March 20, 2024, followed by a detailed discussion of its 2024 results and outlook in a conference call on March 21, 2024.
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