NanoMech Raises $12 Million in Series B Funding Round

NanoMech Inc. announced Sept. 17 that it raised $12 million for its Series B financing round. 

The Springdale-based nanomanufacturing company, which has been in business since 2002, plans to use a lot of that money to reinforce its sales and marketing divisions, in an effort to grow the firm’s global presence, according to a press release from the company.

According to the company, products like nGlide and TuffTek have proven to be disruptive in their respective markets, affording NanoMech the opportunity to do business throughout the world with Fortune 100 companies and innovative startups alike. 

NanoMech, which to date has raised $22 million, plans to use the money to increase its efforts in transportation and energy manufacturing, adding to its current global influence on a myriad of machine-driven industries.

It will also use the money for intellectual property purposes, although the company received important patents this year for its innovations in lubricants, according to the company.

 “The additional capital proceeds are for the purpose of accelerating awareness and demand for our industry transformative nGlide and TuffTek products and expanding our physical presence in the energy manufacturing and transportation markets,” said NanoMech CEO Jim Phillips. “Our sweep over the last year of the major top national new product awards including the R&D 100 Award, the Edison Award, and the SBIR Tibbetts Award, provide ample validation of NanoMech’s prowess in inventing, productizing, and commercializing world class technology. During this timeframe, we also reached a critical milestone in having our core patents issued by the United States Patent & Trademark Office and several key international patent offices.”

The issuance of these patents fortifies the company’s position as a world leader in the lubricant additives and fully formulated lubricants industry, a $300 billion market that serves as the backbone to all industries that use machinery, including manufacturing, farming, gas and oil exploration, aerospace, racing, marine, national defense and transportation. Additionally, winning these patents increases the company’s intellectual property in providing the most wear resistant cutting tools and wear parts in the global $25 billion cutting tool industry. 

The latest round of investors include Meadow Lane Investments, Hendricks Investment Holdings, Advantage Capital Partners and Spring Creek Investments, and the company has about 60 days to consider additional private placements of its stock in this round.

Meanwhile, NanoMech is finishing construction on what it’s calling a state-of-the-art, 25,000-SF facility that will add on to the worldwide headquarters, effectively tripling the current space. 

The new factory will incorporate cutting-edge assembly lines, laboratories, and the latest in security, environmental and safety systems for handling advanced manufacturing, military and strategic projects.

A secure wall and security fencing will enclose the campus. While the new facility will connect to the existing building, the company has also purchased the adjacent 7.3-acre tract for future development, giving the company the ability to expand on a contiguous 9-acre campus.

“This advanced facility will allow us to accelerate the development and commercialization of innovative products that people have only dreamed of before,” Dr. Ajay Malshe, chief technology officer and founder, said in the press release.