Nanotech Closes Final Tranche of $10.2 Million Financing

VANCOUVER, British Columbia – September 25, 2014 – Nanotech Security Corp. (“Nanotech” or the “Company”) (TSXV: NTS) (OTCQX: NTSFF) is pleased to announce that, further to its news releases of August 26, 2014 and  September 12, 2014, it has closed a second tranche and a final tranche of its private placement (the “Second Tranche Closing”).  The Second Tranche Closing consisted of the sale of 587,198 units (“Units”) at a price of $1.50 per Unit for gross proceeds of $880,797.  Each Unit consists of one Nanotech common share and one-half of a common share purchase warrant, with each whole warrant entitling the holder to purchase one common share of Nanotech at a price of $1.90 until the close of business on September 12, 2015.  The warrants are subject to accelerated expiry.

Canaccord Genuity Corp. (the “Agent”) acted as agent for the brokered portion of the Second Tranche Closing and will receive a cash commission equal to 7% of the gross proceeds of the brokered portion.

In addition, the Agent will receive work fee warrants (“Work Fee Warrants”) equivalent to 7% of the total number of Units sold pursuant to the brokered portion of the Second Tranche Closing.  Each Work Fee Warrant will entitle the Agent to purchase one work fee unit at a price of $1.50 per work fee unit at any time until the close of business on September 12, 2015. Each work fee unit consists of one common share and one-half of one common share purchase warrant of Nanotech with the same terms as the warrants included in the private placement.

All securities issued under the Second Tranche Closing are subject to a four month hold period in accordance with the policies of the TSX Venture Exchange and applicable securities laws.  334,898 of the Units were issued on September 18, 2014 and have a hold period expiring on January 19, 2015 and 252,300 of the Units were issued on September 25, 2014 and have a hold period expiring on January 26, 2015.

About Nanotech

Nanotech has been a leading innovator in the design and commercialization of advanced security products using nano- optical devices. Nanotech’s KolourOptikTM and PlasmogramTM optically variable devices (“OVD”s) are nanotechnology based product platforms originally inspired by the unique optical properties of the iridescent wings of the Blue Morpho butterfly. Nanotech OVD images produce intense, high definition images that are ideal for brand authentication and for distinguishing currency, documents, personal identification, consumer electronics, etc. from fakes. Nanotech’s KolourOptik OVD platform creates unique, easy to authenticate images through interaction of light with nano-sized (billionth of a meter) arrays of surface indentation structures imbedded through algorithms and electron beams into various substrates. These nanostructures create vivid colour images, activated by a simple tilt or rotation, and achieve higher resolutions than the best LED-displays currently available, as well as having optical properties not achievable with holograms.

Additional information about Nanotech and its technologies can be found on its website www.nanosecurity.ca or the Canadian disclosure filings website www.sedar.com or the OTCMarkets disclosure filings website www.otcmarkets.com

ADVISORIES

This news release contains forward-looking statements. These forward-looking statements include, without limitation, statements about our market opportunities, strategies, competition, and Nanotech’s views that its nano-optical technology will continue to show promise for mass production and commercial application. The principal risks related to these forward-looking statements are that Nanotech’s intellectual property claims will not prove sufficiently broad or enforceable to provide the necessary commercial protection and to attract the necessary capital and/or that Nanotech’s products will not be able to displace entrenched hologram, metalized strip tagging, and other conventional anti-counterfeiting technologies sufficiently to allow for profitability.

Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect Nanotech’s expectations only as of the date of this news release. Nanotech disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, a U.S. person absent U.S. registration or an applicable exemption from the U.S. registration requirements. This news release does not constitute an offer of securities for sale, nor a solicitation for offers to buy any securities.  Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.

 

On Behalf of the Board of Directors of

Nanotech Security Corp.

“Doug H. Blakeway” President and CEO