Nanollose Faces Cash Crunch Despite Pilot Success and Placement Raise
Nanollose Limited has achieved a significant milestone by blending its Nullarbor-20™ sustainable fibre with Australian merino wool to produce pilot blankets, while also completing a $672,000 placement to fund ongoing commercialisation efforts.
- Successful pilot production blending Nullarbor-20™ fibre with merino wool
- Manufacture of approximately 70 wool blankets incorporating Nullarbor fibre
- Completion of $672,000 placement with shareholder approval post quarter-end
- Continued development of Biollose™ MicroGel for soilless horticulture
- Quarter-end cash balance of $88,000 with plans to secure additional capital
Operational Milestone: Nullarbor-20™ Fibre Pilot Production
Nanollose Limited (ASX: NC6) has marked a key advancement in its commercialisation journey with the successful pilot manufacturing run of its Nullarbor-20™ sustainable fibre blended with Australian merino wool. Conducted in collaboration with Waverley Mills, a leading Australian textile mill, this pilot run produced approximately 70 wool blankets, representing the first time Nullarbor fibre has been integrated with wool at a commercial pilot scale.
The blend consists of 30% Nullarbor-20 fibre and 70% merino wool, spun into yarn and woven into fabric before finishing. This milestone not only demonstrates the versatility of Nanollose’s proprietary fibre but also its compatibility with premium natural fibres, positioning Nullarbor as a sustainable alternative in high-value textile markets.
Advancing Biollose™ and Other Biomaterial Innovations
Alongside textile developments, Nanollose has continued refining its Biollose™ MicroGel formulation, aimed at soilless horticulture applications such as microgreen cultivation. The company’s personnel recently conducted on-site trials at Greenspace, observing the product’s rehydration and dispensing characteristics to better align with commercial farming equipment.
Further, Nanollose is progressing its animal-free, plastic-free biomaterial initiatives, focusing on improving water repellency and hand-feel for nonwoven fashion and alternative leather applications. These efforts underscore the company’s commitment to expanding its eco-friendly product suite beyond fibres into broader sustainable materials.
Capital Raising and Financial Position
Post quarter-end, Nanollose successfully completed a $672,000 placement, following shareholder approval received in February 2025. This placement is part of a broader capital raising strategy initiated in December 2024, designed to fund ongoing research and development as well as commercialisation activities.
Despite a modest cash balance of $88,000 at the end of March, the company expressed confidence in securing additional capital to sustain operations and meet its near-term objectives. Management highlighted diligent cash management during the quarter, with operating cash outflows of $439,000, primarily directed towards R&D and corporate costs.
Outlook: Scaling Production and Market Adoption
Looking ahead, Nanollose aims to scale up pilot production of Nullarbor fibres and fabrics in partnership with multinational collaborators. The company is focused on increasing the volume and fibre content of Nullarbor blends, expanding commercial trials, and advancing the adoption of Biollose horticultural products.
With a patent filed jointly with strategic partner Birla Cellulose, Nanollose is well-positioned to leverage its proprietary technology to access premium textile and biomaterial markets. The successful integration of Nullarbor fibre with merino wool signals a promising pathway to commercial viability and broader market acceptance.
Bottom Line?
Nanollose’s pilot production success and fresh capital injection set the stage for scaling its sustainable fibre technology amid tight cash reserves.
Questions in the middle?
- How quickly can Nanollose scale Nullarbor fibre production to commercial volumes?
- What are the commercial terms and potential revenue from partnerships with mills like Waverley and Birla Cellulose?
- Will Nanollose secure additional funding to extend its runway beyond the current cash position?
