How Nanollose’s Microbial Cellulose Breakthrough Could Transform Sustainable Fibres
Nanollose Limited has made significant progress in microbial cellulose production, enabling direct integration into lyocell fibre manufacturing, while securing $750,000 in funding through option exercises by Fiftyone Capital.
- Successful production and shipment of upgraded microbial cellulose batch to Birla Cellulose
- Process improvements allow direct use of microbial cellulose in lyocell production without pre-processing
- Fiftyone Capital commits $750,000 via early exercise of 30 million options
- CEO Andrew Moullin conducts key site visits in China and India to oversee production and partnerships
- Company ends quarter with $341,000 cash and focused on scaling pilot production
Operational Progress and Strategic Partnerships
Nanollose Limited (ASX – NC6), a pioneer in sustainable biomaterials, has reported steady operational progress for the quarter ending September 2025. The company successfully procured and shipped an upgraded 200kg batch of microbial cellulose to Birla Cellulose’s pilot production facility in India. This batch represents a key milestone as it can now be directly integrated into the lyocell fibre production process without additional pre-processing, thanks to process improvements developed in collaboration with supply partner Hainan Guangyu Biotechnology (HGB).
CEO and Managing Director Andrew Moullin personally oversaw production at HGB’s Haikou facility in China and engaged in commercial and technical discussions at Aditya Birla’s Science and Technology facility in Taloja, India. These visits have not only strengthened operational oversight but also opened new avenues for continuous production and cost optimisation, critical for scaling Nanollose’s forest-friendly Nullarbor™ fibre technology.
Funding Boost and Corporate Advisory Support
Financially, Nanollose secured firm commitments from existing substantial shareholder Fiftyone Capital to raise $750,000 through the early exercise of 30 million options. This injection provides a vital working capital base to support ongoing pilot production testing, commercial development, and feasibility studies for scaling production capacity. Additionally, Fiftyone Capital’s Principal, Scott Williams, has joined as a Corporate Advisor, bringing valuable capital markets expertise and investor networks to support Nanollose’s commercialisation journey.
Cash Position and Operational Efficiency
At quarter-end, Nanollose held $341,000 in cash, reflecting diligent cash management amid ongoing R&D, marketing, and administrative expenditures. The company expended $532,000 during the quarter, with a focus on advancing pilot production and refining its microbial cellulose supply chain. While the cash runway is currently under two quarters, Nanollose remains confident in its ability to secure further funding through structured option exercises and strategic partnerships.
Looking Ahead
Post quarter-end, preparations are underway for the fourth pilot production spin of Nullarbor™ fibre, expected to yield approximately 500kg of Nullarbor-30™ fibre. This next phase will test the continuous production capabilities and further validate the commercial scalability of Nanollose’s innovative, eco-friendly fibre technology. The company’s progress signals a promising step towards disrupting traditional fibre manufacturing with sustainable, tree-free alternatives.
Bottom Line?
Nanollose’s operational strides and strategic funding set the stage for critical scale-up milestones in sustainable fibre production.
Questions in the middle?
- How will Nanollose manage its cash runway given current burn rates and funding timelines?
- What are the anticipated timelines and challenges for achieving continuous commercial-scale production?
- How will Fiftyone Capital’s advisory role influence Nanollose’s investor engagement and partnership strategies?
