Nanotech Sells to Smart Light Company

Optical security feature provider Nanotech Security Corporation has agreed to be acquired by Meta Materials, a developer of high-performance functional materials and nanocomposites, for nearly C$91 million.

The transaction is subject to customary closing conditions, including approval by Nanotech shareholders. The Board has unanimously recommended the offer.

Nanotech is based in BC, Canada with a high security production facility in Quebec. Its portfolio includes nano-optic structures and colour-shifting foils used in authentication for banknotes, secure government documents, and commercial branding. Its technology platforms include KolourOptik™, LiveOptik™ and LumaChrome™. It has 47 issued patents and 22 pending.

Last year, the company had sales of C$7.7 million, up by 12.5% on the previous year, but a net loss of $1.8 million, down by 35% on the previous year. In the first three quarters of this year, revenues were up by 21% to C$6.1 million compared with the first nine months of the previous financial year.

Meta Materials describes itself as an early growth stage platform company, moving toward volume production for applications in multiple end markets, specialising in smart materials and photonics. It is located in Nova Scotia and listed on the Canadian Stock market in 2020. Earlier this year, it merged with Texan oil and gas exploration company Torchlight, and is now listed on NASDAQ. Its revenues last year were C$1.5 million; as of June this year, it had cash and cash equivalents of $154 million.

According to the company, the addition of Nanotech’s highly experienced manufacturing group, its nanophotonics R&D teams and its well-established origination and conversion capabilities are expected to significantly expand and accelerate Meta Materials' design-to-production roadmap and extend its leadership position in commercialising metamaterials.

According to Nanotech, meanwhile, the transaction ‘is expected to provide Nanotech with greater access to capital to accelerate its commercialisation and growth strategies’.

The acquisition is due to be completed in October.