Amid all the pandemic chaos NanoXplore has completed the largest graphene plant in the world on schedule, overcoming a two month lockdown. The research-focused company is continuing its aggressive expansionary approach while growing their graphene patent portfolio. Earlier this year new equity was raised to increase their cash position which allows them to continue to develop in the coming years. Since the last time of writing their market cap tripled while their stock market value has almost doubled, a deserved reward for this innovative Montreal-based graphene-focused company.
“With the potential to become a billion dollar company, the only thing NanoXplore has to do is staying more efficient than others, while continuing to increase supply where demand is created.”The Golden Investor on January 24th 2020
Their recent three-and-a-half million U.S. dollar acquisition of Continental Structural Plastics’ is in line with their aggressive M&A strategy. Along with several other acquisitions in recent years, NanoXplore has proved to push towards vertical integration of their graphene products. This approach is their best shot to create a successful end-market for their graphene enhancement products. With this recent acquisition they expand their reach to the United States, which provides them the opportunity to market their composite products for heavy trucks and machinery. The acquisition of this North Carolina plant sets them in close proximity of many potential future costumers. It creates the possibility to built a local graphene plan and increases commercial viability of NanoXplore’s business model.
Both NanoXplore’s successful take-overs as their non-diluting financing rounds have shown that this company is able to handle the risks involving expansion within the still small graphene market. Their continuing efforts to increase their footprint comes with great risks and responsibility. This still loss-making company has to push to innovate in order to stay interesting for investors, as their credit rating is sub-optimal as they have yet to prove to be commercially viable. However, compared to peers in the graphene market NanoXplore seems to show progress with a focused and thorough business approach. Their revenue stream is expected to double within two to three years. NanoXplore’s business model is focused on sustainable solutions that could suit many end-market products within different industries. While graphene enhanced products have been researched and investigated since the early 2000’s, NanoXplore seems to be set to make the first step to real viable commercial solutions. And with commercial production set to kick-in before the end of this year, it seems that NanoXplore has much more room to grow. Together with increasing efforts to create graphene enhanced anodes for Lithium-ion batteries, also NanoXplore’s research staged projects seem to have potential exponential future growth within this growing industry boosted by growth within the technology sector.
Disclaimer: The writer of this article holds NanoXplore (CVE:GRA) stock, this article should not be interpreted as investment advice or anything like that