When it comes to small and microcap stocks, you can find some truly unique ventures.
Take Nanollose Ltd [ASX:NC6] for instance. A company that classifies itself as a biomaterials maker. More specifically, they use a technological process to turn industrial and agricultural waste into rayon fibres for clothing.
Easily one of the more fascinating and experimental companies on the ASX.
And today, they’ve captured the markets attention with a new joint patent application. Sending the NC6 share price up 56% at time of writing.
Let’s delve into the details.
Joint patent a key milestone
Today Nanollose confirmed that it has filed a joint patent with Grasim Industries Ltd [NSE:GRASIM], a US$662 billion textile company.
Together, the duo is aiming to retain intellectual property rights to Nanollose’s latest fibre production process. More importantly though, it is the quality of this new process that is truly remarkable.
As Nanollose states:
‘Using the lyocell process, a team of fibre experts at Grasim’s Pulp and Fibre Innovation Centre have produced nullarbor fibre that is finer than silk and significantly stronger than conventional lyocell that is traditionally produced from wood pulp.’
Obviously, that is a huge breakthrough. One that could turn Nanollose into global pioneer for next-generation textiles.
At least, that is no doubt what they’re hoping to do. And today’s development will bring them one step closer to that goal. Aiming to lockdown the technological process behind it, with said patent.
Plus, having Grasim’s help will certainly make it an easier endeavour. No doubt opening up the possibility for further collaboration in future.
Right now though, for Nanollose shareholders, it’s certainly news worth celebrating.
What’s next for Nanollose?
It’s still very early days for Nanollose. With the company sporting a tiny market cap, niche offering and not a whole lot of tangibles.
Instead, it’s prospect of what this company could one day become that will attract investors. Especially given its appealing and techy background.
In order to keep growing, Nanollose will need to keep building up their momentum. Not only broadening upon this current partnership, but also bring others into the mix.
That’s why today’s result will need to be a catalyst for further progress. Pushing the company and its shareholders to strive for even bigger returns. Because if their technology lives up to the hype, the real gains may be yet to come.
And if you’re looking for more explosive small-caps, you can look far further than Nanollose. In fact, we’ve put together a report on three of our favourite small tech plays. Stocks that all have a similar flair and near limitless opportunity to them.
For more details, including the names of these three stocks, check out the full report, right here.
For Money Morning