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TICKERS: NNE

Clean Energy Solutions Co. Raises US$18M
Research Report

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With the additional capital, this Buy-rated firm is better positioned to advance its growth strategies, noted a Benchmark Co. report.

Nano Nuclear Energy Inc. (NNE:NASDAQ) raised US$18 million in an upsized equity offering, with which the company may accelerate its strategic initiatives, reported The Benchmark Co. analyst Michael Legg in a July 15 research note.

"We believe the additional cash on the balance sheet will enable Nano Nuclear to accelerate growth initiatives, including Nuclear Regulatory Commission (NRC) applications, consulting services, and related mergers and acquisitions, physical demo reactor development, and establishment of a company campus for research and development and related projects," Legg wrote.

The company is developing portable clean energy solutions, including nuclear microreactors, and the related supply chain.

56% Gain Possible

Given the news, Benchmark reiterated its US$39 per share price target on the New York-based company, which was trading at the time of the report at about about US$25 per share, noted Legg. The difference between these prices implies a potential return for investors of 56%.

Nano Nuclear remains a Buy.

"We believe the stock will benefit from increased knowledge and proliferation of demand for small modular reactors as safety and use cases gain public acceptance as climate change

initiatives favor emission-free energy and see such as key catalysts for the stock alongside continued operational progress," Legg commented.

Details of Cash Raise

In this upsized financing, Nano Nuclear any sold 900,000 shares of common stock along with warrants to purchase 450,000 shares of common stock, at a cost of US$20 per unit, Legg relayed.

Each unit is comprised of one common stock share plus one warrant to purchase up to one-half of a common stock share.

"Our share count [for NNE] increases to 55 million (55M) shares from 29M today, factoring in equity raises over the next five years," wrote Legg.


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Important Disclosures:

  1. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
  2.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

Disclosures for Benchmark, Nano Nuclear Energy Inc., July 15, 2024

Analyst Certification The Benchmark Company, LLC (“Benchmark”) analyst(s) whose name(s) appears on the front page of this research report certifies that the recommendations and opinions expressed herein accurately reflect the research analyst's personal views about any and all of the subject securities or issues discussed herein. Furthermore, no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the research analyst(s) in this research report.

1. In the past 12 months, Benchmark and its affiliates have received compensation for investment banking services from the subject company.

2. In the past 12 months, Benchmark and its affiliates have managed or co-managed a public offering of securities for the subject company.

3. Benchmark and its affiliates expect to receive or intend to seek compensation for investment banking services from the subject company in the next three months.

Investment Risk Risks include the inability to source capital and fund NNE's buildout, the need to secure government permits related to nuclear power, loss of key management, unproven technologies at scale, larger well financed competition, and unforeseen regulations. Valuation Methodology Our target price of $39 is based on our NPV analysis built out to 2042 utilizing a 25% discount rate. Our share count increases to 55mm shares from 29mm today, factoring in equity raises over the next 5 years. Should the company receive government grants, our share count assumptions could prove conservative. We believe the stock will benefit from increased knowledge and proliferation of demand for SMRs as safety and use cases gain public acceptance as climate change initiatives favor emission free energy and see such as key catalysts for the stock alongside continued operational progress. Price Charts Benchmark’s disclosure price charts are updated within the first fifteen days of each new calendar quarter per FINRA regulations. Price charts for companies initiated upon in the current quarter, and rating and target price changes occurring in the current quarter, will not be displayed until the following quarter. Additional information on recommended securities is available on request.

The Benchmark Company, LLC. (“Benchmark” or “the Firm”) compensates research analysts, like other Firm employees, based on the Firm’s overall revenue and profitability, which includes revenues from the Firm’s institutional sales, trading, and investment banking departments. No portion of the analyst’s compensation is based on a specific banking transaction. Analyst compensation is based upon a variety of factors, including the quality of analysis, performance of recommendations and overall service to the Firm’s institutional clients.

This publication does not constitute an offer or solicitation of any transaction in any securities referred to herein. Ratings that use the “Speculative” risk qualifier are considered higher risk. Any recommendation contained herein may not be suitable for all investors. The Benchmark Company, LLC makes every effort to use reliable, comprehensive information, but we make no representation that it is accurate or complete. We have no obligation to disclose when information in this report changes apart from when we intend to discontinue research coverage of a subject company. Although the information contained in the subject report has been obtained from sources, we believe to be reliable, its accuracy and completeness cannot be guaranteed. This publication and any recommendation contained herein speak only as of the date hereof and are subject to change without notice. The Benchmark Company, LLC and its affiliated companies and employees shall have no obligation to update or amend any information herein. This publication is being furnished to you for informational purposes only and on the condition that it will not form a primary basis for any investment decision. Each investor must make its own determination of the appropriateness of an investment in any securities referred to herein based on the legal, tax and accounting considerations applicable to such investor and its own investment strategy. By virtue of this publication, none of The Benchmark Company, LLC or any of its employees shall be responsible for any investment decision. This report may discuss numerous securities, some of which may not be qualified for sale in certain states and may therefore not be offered to investors in such states. The “Recent Price” stated on the cover page reflects the nearest closing price prior to the date of publication. For additional disclosure information regarding the companies in this report, please contact The Benchmark Company, LLC, 150 East 58th Street, New York, NY 10155, 212-312-6770. The Benchmark Company, LLC is not in any way affiliated with or endorsed by the Menlo Park, California venture capital firm Benchmark Capital. This report may not be reproduced, distributed, or published without the prior consent of The Benchmark Company, LLC. Copyright © 2024. All rights reserved by The Benchmark Company, LLC.





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