Montreal, Quebec — November 14, 2022 – NanoXplore Inc. (“NanoXplore” or “the Corporation”) (TSX: GRA and OTCQX: NNXPF), a world-leading graphene company, reported today financial results for the first quarter ended September 30, 2022, and unveiled its 5-year strategic plan.

All amounts in this press release are in Canadian dollars, unless otherwise stated.

  • Revenues from customers grew 52% to $27.1 million vs Q1-2022
  • For Q1-2023, Gross margin was 11.6%, an increase of 860 bps over Q1-2022, and Adjusted EBITDA* totaled -$2 million, an improvement of $1.8 million over Q1-2022
  • Total liquidity of $49.1 million as at September 30, 2022, including cash and cash equivalents of $42.8 million
  • Total long-term debt of $9 million as at September 30, 2022
  • For financial year 2023, NanoXplore is guiding for $110 million in total revenues
  • The Corporation intends to increase its capacity 5-fold to reach 20,000 ton/year in graphene and battery materials in 5 years
  • The Corporation will expand its Sheet Molding Compound (SMC) forming capacity by investing in an additional 10m-lbs capacity to target the large, growing, and promising lightweighting materials market, using its proprietary GrapheneBlack SMCTM
  • The Corporation will actively participate in the energy transition and sustainability megatrends


Soroush Nazarpour, President and Chief Executive Officer, stated: “Despite being in a tough macro-environment, we are satisfied with the performance of our business. Our revenues from customers grew 52% and our gross margin continues to expand on a year-on-year basis based on better graphene-enhanced products. Having said that, supply chain challenges reduced our total expected revenue of this quarter and company-wide wage increase that we applied on July 1st, reduced our gross margin. We anticipate to offset the negative impact of supply chain disruption and wage increase with higher graphene sales as our graphene commercialization efforts continues.”
Pedro Azevedo, Chief Financial Officer, stated: “I am very excited to share our strategic plan for the next 5 years. It is a targeted approach in the areas we see the best uses for Graphene and where they will create the most value for our shareholders. I am also very pleased with the progress we have made in our financial performance since last year. Comparing to Q1-2022, we have made significant improvements to gross margins, improved EBITDA and cut operating cash consumption by over 40% while investing in graphene uses with our partners.”
Results of operations may include certain unusual and other items which have been separately disclosed, where appropriate, in order to provide a clear assessment of the underlying Corporation results. In addition to IFRS measures, management uses non-IFRS measures in the Corporation’s disclosures that it believes provide the most appropriate basis on which to evaluate the Corporation’s results.


Revenues from customers27,147,167 17,830,0179,317,15052%
Other income85,358988,429(903,071)(91%)
Total revenues27,232,52518,818,4468,414,07945%
Revenues from customers increased from $17,830,017 in Q1-2022 to $27,147,167 in Q1-2023. This increase is mainly due to a positive product mix including graphene enhanced products, the acquisition of Canuck in December 2021 and price increases offset by lower fluctuating tooling revenues.
Other income decreased from $988,429 in Q1-2022 to $85,358 in Q1-2023. The decrease is explained by the end of the CEWS program set up by the Canadian Federal government to help businesses deal with the COVID-19 pandemic. The Corporation received nil under this program during Q1-2023 compared to $798,641 in Q1-2022 as the program ended in October 2021.
Adjusted EBITDA*
The adjusted EBITDA improved from -$3,760,406 in Q1-2022 to -$1,977,032 in Q1-2023. The variation is explained as follows:
  • Gross margin on revenues from customers increased by $2,624,033 compared to last year due to higher sales as describe above, improved productivity and cost control; and
  • This was offset by higher administrative expenses (SG&A and R&D) of $736,229 mainly due additional headcounts and higher wages, including higher accrued variable compensation.
By leveraging its proven formula and to further extend its market-leading position, NanoXplore is announcing, as part of its strategic plan (“Plan”), a significant increase in its graphene and battery materials capacity, reaching 20,000 tons in 2027 from 4,000 tons currently which represents a five-fold increase. Additionally, as part of the Plan, NanoXplore will invest in a 10M-lbs Sheet Molding Compound (SMC) facility in order to capture the large and growing SMC market which targets lightweighting solutions. Following a long and extensive review of its operations, top-down market analysis, and commercialization potential, the strategic plan lays out a path to accelerated growth in 2026 and beyond.
Soroush Nazarpour, President and Chief Executive Officer, stated: “The new strategic plan lays out a path to accelerated growth  in the next few years, following successful completion of our previous five-year strategy. Our strategy is to narrow the scope of  our funnel and focus on the highest probability of success and high-volume graphene powder applications. Accordingly, we are  announcing a significant increase in our graphene and battery materials production capacity.”
The Corporation, in order to accomplish its capacity expansion target, will require an investment of $170 million over the next five years, which the investments will be contingent to certain commercial milestones. This growth investment program will be financed through a combination of cash on hand, grants, debt, and equity, if needed. The capital allocation strategy will have the goal of achieving maximum shareholder value creation. The focus will be on three large, growing, and attractive markets: battery materials, lightweighting composites, and specialty compounds. The investments are as follows:
AssetsCapacity AdditionLocationCommissioning yearPotential Annual Revenue
Graphene and Battery Materials12,000 tons/yearMontreal, QC2025$100 million
SMC10M lbs/yearNewton, NC2025$80 million
Graphene4,000 tons/yearHQ2026$40 million
C. Other
Additional information about the Corporation, including the Corporation’s Management Discussion and Analysis for the three-month periods ended September 30, 2022 and 2021 (“MD&A”) and the Corporation’s consolidated financial statements for the three-month periods ended September 30, 2022 and 2021 (the “financial statements”) can be found at

* Non-IFRS Measures

The condensed interim consolidated financial statements were prepared using results and financial information determined under IFRS. However, the Company considers certain non-IFRS financial measures as useful additional information in measuring the financial performance and condition of the Company. These measures, which the Company believes are widely used by investors, securities analysts and other interested parties in evaluating the Company’s performance, do not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other publicly traded companies, nor should they be construed as an alternative to financial measures determined in accordance with IFRS. Non-IFRS measures include “Adjusted EBITDA”.


NanoXplore will hold a webcast tomorrow, November 15, 2022, at 8:30 am EST to review its first quarter ended September 30, 2022, results. Soroush Nazarpour, CEO and President of NanoXplore, and Pedro Azevedo, Chief Financial Officer, will host the event. To access the webcast please click on the link or you can access through our website in the Investors section under Events and Presentations. A replay of this event can be accessed via the above link or on our website. To access the 5-year strategic plan presentation, please visit the Investors section under Events and Presentation at


NanoXplore is a graphene company, a manufacturer and supplier of high-volume graphene powder for use in industrial markets. The Company provides standard and custom graphene-enhanced plastic and composite products to various customers in transportation, packaging, electronics, and other industrial sectors. NanoXplore is headquartered in Montreal, Quebec with manufacturing facilities in Canada, the United States and Europe.


This press release contains forward-looking statements and forward-looking information (together, “forward-looking statements”) within the meaning of applicable securities laws. All statements, other than statements of historical facts, are forward-looking statements, and subject to risks and uncertainties. All forward-looking statements are based on our beliefs as well as assumptions based on information available at the time the assumption was made and on management’s experience and perception of historical trends, current conditions and expected future developments, as well as other factors deemed appropriate in the circumstances. No assurance can be given that these assumptions and expectations will prove to be correct. Forward-looking statements are not facts, but only predications and can generally be identified by the use of statements that include phrases such as “anticipate”, “believe”, “continue”, “could”, “estimate”, “foresee”, “grow”, “expect”, “plan”, “intend”, “forecast”, “future”, “guidance”, “may”, “predict”, “project”, “should”, “strategy”, “target”, “will” or similar expressions suggesting future outcomes.

Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties. Such forward-looking information necessarily involves known and unknown risks and uncertainties, including the relevant assumptions and risks factors set out in NanoXplore’s most recent annual management discussion and analysis filed on SEDAR at, which may cause NanoXplore’s actual results to differ materially from any projections of future results expressed or implied by such forward-looking information. These risks, uncertainties and other factors include, among others, the uncertain and unpredictable condition of global economy, notably as a consequence of the Covid-19 pandemic. Any forward- looking information is made as of the date hereof and, except as required by law, NanoXplore does not undertake any obligation to update or revise any forward–looking statement as a result of new information, subsequent events or otherwise.

Forward-looking statements reflect management’s current beliefs, expectations and assumptions and are based on information currently available to management. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve known and unknown risks and uncertainties and other factors that could cause actual results to differ materially from those contemplated by such statements.

No securities regulatory authority has either approved or disapproved the contents of this press release.

For further information:

Investors and media

Martin Gagné

Director of Investor Relations

Tel: 1 438 476 1927

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