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Posted: December 8, 2009
Nanostart Further Increases Ownership of ItN Nanovation
(Nanowerk News) Nanostart AG, the Frankfurt-based nanotechnology investment company, is increasing its shareholding in ItN Nanovation AG, 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.
Nanostart AG is the world’s leading nanotechnology investment company. The Frankfurt-based company provides venture capital financing for nanotechnology companies in various growth phases. It also provides the benefits of its experience and expertise to developers of financial instruments and to investors in the nanotechnology sector..
About ItN Nanovation
ItN Nanovation AG, founded in 2000, is one of the leading nanotechnology companies in the world, developing innovative ceramic products, such as filtration systems and coatings, for large industrial customers. The nanoscale powder needed for those products is manufactured by the company itself. The filtration products from ItN Nanovation can be used for drinking water purification, waste water treatment, as beverage filters and for the separation of oil and water. Ceramic coatings based on nanotechnology are used in a variety of ways as protective and catalytic coatings in various industries: from baking ovens to aluminum foundries to coal-fired power plants. The company's success is founded on an extensive product portfolio, combined with comprehensive development and application know-how.