NanoXplore Inc., a leading global company specializing in graphene technology, and Martinrea International Inc., a diversified automotive supplier focused on designing, developing, and producing high-value lightweight structures and propulsion systems, operating through its subsidiary, Martinrea Innovation Developments Inc.
On March 24, 2023, NanoXplore Inc. acquired Martinrea Innovation's 50% equity stake in VoltaXplore Inc. for a total equity value of $10 million.
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NanoXplore has acquired complete ownership of both the equity and intellectual property in VoltaXplore, while Martinrea has increased its existing equity position in NanoXplore from 21.1% to 22.7%.
VoltaXplore was established as a collaborative joint venture between NanoXplore and Martinrea in 2021 with the aim of developing graphene-enhanced Li-ion battery cells for electric vehicles and grid storage, as well as exploring the potential of constructing a battery gigafactory.
NanoXplore intends to secure financing for the battery gigafactory within VoltaXplore without diluting the shares of its shareholders. The acquisition has streamlined VoltaXplore's capital structure, which will improve its access to both government and private funding.
In addition to this, NanoXplore and Martinrea have agreed to extend their current graphene commercial agreement for another five years, effectively lengthening the agreement to a total of 10 years. This extension will strengthen the robust relationship between the two companies.
Will the acquisition behold the future of the 2D materials market?
This acquisition by NanoXplore of Martinrea's equity stake in VoltaXplore is a significant development in the field of graphene-enhanced Li-ion battery cells for electric vehicles and grid storage, as well as the potential construction of a battery gigafactory. It may position NanoXplore as a key player in this emerging market and could potentially drive further research and investment in 2D materials.
According to the BIS Research report, the global 2D materials market is projected to reach $4.00 billion by 2031 from $526.1 million in 2022, growing at a CAGR of 25.3% during the forecast period 2022-2031.
Focusing on the development of graphene in the 2D materials market, in December 2021, Black Swan Graphene Inc. also entered into a binding letter of intent to acquire Dragonfly Capital Corp. through a reverse merger agreement for a total of $31.5 million.
Thus, in the near future, there is a possibility that the global 2D materials market will experience a rise in the production of consumer electronics, electric vehicles, biomedical devices, and other applications, which may have an impact on the global 2D materials market.
The Ownership Tale
To obtain full ownership of the joint venture, NanoXplore issued 3,420,406 common shares to Martinrea, priced at $2.92 per share of NanoXplore. The share price for NanoXplore was determined based on the volume-weighted average trading price of its common shares on the Toronto Stock Exchange for a period of 20 trading days before the transaction's closing. After the transaction's completion, Martinrea and its affiliates hold a total of 38,466,360 common shares of NanoXplore, which represents approximately 22.7% of the company's issued and outstanding common shares.
To this ownership, Soroush Nazarpour, President and Chief Executive Officer of NanoXplore, commented, “The joint venture was successful in the full demonstration of our battery technology and Martinrea’s support enabled VoltaXplore to de-risk this project significantly. And we will continue to work together in building graphene-enhanced solutions in the automotive sector.”
Conclusion
As stated by Sachin Singh, Lead Analyst, BIS Research, “2D materials have gained growth in recent years due to a growing emphasis on environmentally friendly and emerging 2D materials. Due to their outstanding strength, compact size, flexibility, and superior thermal and electrical conductivity, 2D materials are distinctive in many ways.”
Furthermore, the market for 2D materials is expected to experience rapid growth during the forecast period as a result of several technical and performance improvements in various materials such as Mxene, hexagonal boron nitride, TMDCs, and others.
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