- Significant milestone in Cal Nano's production capabilities and manufacturing capacity
- New lease for 19,500 sq. ft. facility, an upgrade from current 3,500 sq. ft. facility
- Both facilities will be maintained in the near term to ensure operational continuity
Los Angeles, California--(Newsfile Corp. - February 20, 2024) - California Nanotechnologies Corp. (TSX V: CNO) (OTC Pink: CANOF) ("Cal Nano" or the "Company") is pleased to announce that it has signed a new lease agreement for an additional manufacturing facility in Santa Ana, California. This marks a significant milestone in the expansion of the Company's production capabilities and footprint, and positions Cal Nano for continued growth and innovation within the advanced materials industry.
The newly secured lease encompasses an approximate 19,500 square foot facility, spanning a five-year term with a base monthly rent of US$31,185, exclusive of utilities. Situated approximately a 20-minute car commute from the Cerritos-based facility, this new location represents a substantial upgrade from Cal Nano's current approximately 3,500 square foot site, which it expects to continue operating in the near term. The expansion plan is expected to allow the Company to meet growing market demands, start delivering parts for customers, expand capabilities with newly purchased equipment, and ensure continuity.
"After outgrowing our current facility of ten plus years, we are excited to announce this key development," stated CEO Eric Eyerman. "The expanded footprint enables Cal Nano to install larger equipment, serve an expanding customer base, and undertake more projects at higher volumes. Our new space is expected to enable us to push the boundaries of material science and innovation in the development of next-generation products that demand more advanced materials."
Central to the decision in selecting this new location was its existing high electrical amperage capacity, allowing Cal Nano to set up and more cost effectively operate its cutting-edge spark plasma sintering (SPS) and cryomilling technologies. In addition, by retaining both facilities, the Company aims to ensure uninterrupted operations by housing existing equipment at the current site while deploying its other machinery and resources at the newly leased facility over time.
The first equipment expected to be installed will be the used cryomill purchased in mid-2023, a second larger used cryomill purchased in early February 2024, along with the associated cryogenics and material handling infrastructure needed to support the higher throughput operations. The newly purchased cryomilling equipment reflects a significant increase in production capacity and efficiency, increasing from the existing 25 gallons limit to a combined potential of 160 gallons when fully installed and operational. Cal Nano believes that the base milling equipment, which still requires the implementation of Cal Nano's intellectual property and upgrades, was acquired at an attractive price point, representing a fraction of the cost of comparable new models. Cal Nano continues to explore the potential purchase of larger scale SPS equipment for installation at the facility as well.
Cal Nano strives to be a North American leader in SPS and cryomilling R&D and production services. To the best of the Company's knowledge, no other facilities in North America possess the capability to support both growing technologies in commercially producing state-of-the-art materials for new markets.
About California Nanotechnologies Corp.
At Cal Nano, we envision a world in which our advanced technologies are used to help make the most innovative products on this planet and beyond. Global leaders trust us to help push the boundaries of applied material science by utilizing our unique technical expertise and vision. Headquartered in Los Angeles, California, Cal Nano hosts advanced processing and testing capabilities for materials research and production needs. Customers range from Fortune 500 companies to startups with programs spanning aerospace, renewable energy, defense, and semiconductors.
For further information, please contact:
California Nanotechnologies Corp.
Eric Eyerman, CEO
T: +1 (562) 991-5211
info@calnanocorp.com
Otis Investor Relations Inc.
Brandon Chow, Principal & Founder
T: +1 (647) 598-8815
brandon@otisir.com
Reader Advisory
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, but is not limited to: future financial results, including anticipated profitability and/or lack thereof; statements about future plans, including statements about the planned expansion of the Company's manufacturing capacity, and new sites for the Company's production and headquarters; demand for the Company's services by current and future customers, including existing and future orders for the Company's SPS equipment and the anticipated revenue therefrom; and 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. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information. Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the 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 globally; expansion into the new manufacturing facility; a significant change in demand for the Company's services and products; industry conditions, governmental regulation, including environmental regulation; the effects of product development and need for continued technological change; the effect of government regulation and compliance on the Corporation and the industry; research and development risks; reliance on key personnel; operations in foreign jurisdictions; protection of intellectual property rights; contractual risk; third-party risk, risk of technological or scientific obsolescence; dependence of technical infrastructure; unanticipated operating events or performance; failure to obtain industry partner and other third party consents and approvals, if and when required; 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 the other risk factors disclosed under our profile on SEDAR+ at www.sedarplus.ca. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
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