Nanostart AG, the Frankfurt-based nanotechnology investment company, is increasing its shareholding in ItN Nanovation AG (ISIN DE000A0JL461 /WKN A0JL46), a cleantech innovator based in Saarbrücken, Germany, from 26.5 percent to almost 27.2 percent.
Following the company’s successful turnaround, ItN Nanovation has repositioned itself and is rapidly moving forward with a highly focused business model built around two key growth drivers: its patented technology, and its new marketing strategy. The strategy under the company’s new senior management centers around international joint ventures to execute specific projects under which ItN Nanovation provides its know-how in the production of nanoceramics, while the project partner – generally a major corporation – provides financial backing as well as production and marketing resources. Several such major projects are already in process, such as projects for seawater desalination in the Arabian Peninsula and for the separation of oil-water mixtures in the production of oil from tar sands in North America.
Marco Beckmann, CEO of Nanostart, commented on the increase in ownership: “The availability of clean water is a global challenge which is becoming critically important and for which the unique technology from ItN Nanovation holds out reliable and effective solutions. Some very attractive business opportunities have already come about as a result of this business restructuring, and we regard our increase in shareholding as a superb investment.”
The increase in shareholding is resulting from the issuance of new shares against a contribution of capital in kind which was resolved by the executive board of ItN Nanovation and approved by its supervisory board on December 4. Under this transaction, secured loans in the amount of EUR 1.5 million, for the most part from Nanostart AG and a prominent business family, will be contributed to the company, in exchange for which 462,961 new shares will be issued from approved capital, these having been valued based on the prevailing market price. As a result of this exchange transaction, ItN Nanovation AG will have a significantly stronger balance sheet structure in that these liabilities will be converted into shareholder equity. At the same time, by releasing the collateral securing the loans, the debt exchange transaction has facilitated the seamless transfer, as announced on December 2, of the company’s production facility in Halberstadt, Germany, which was sold to CWT Clean Tech AG. Through the contribution of capital in kind, the company’s registered capital will increase to almost EUR 8.2 million. The transaction is expected to raise the equity ratio on the company’s balance sheet to approx. 50 percent, while also eliminating annual interest expense of more than EUR 100,000. Assuming that the capital increase is entered into the commercial register before year end, ItN Nanovation AG will have no remaining liabilities toward banks or other lenders.