the following update confronts that question. In o

the following update confronts that question. In other words, as mits noted earlier, the company is not likely to use the stock fundraising option if the pps is not favorable to doing so. NNLX can see the illogical pps manipulation as well as we can-and has additional tools to do so.

So due to that continuing manipulation NNLX is likely to finance internally via increasing sales as they forecast they would do in this situation.

That is a smart long term outlook,even if it slows immediate expansion, that would help prevent long term pps depression that otherwise would result from low priced options/warrants. Too many companies take stock fundraising shortcuts which hurt longs and future pps. NNLX history shows they have tried to avoid making those common mistakes and thus "dilution" has been modest compared to most pennies.


Dec. 20, 2016

NanoLogix is pleased to announce the following Update:

The Company has narrowed its selection of buildings to use as a larger production facility in northeast Ohio. Two existing buildings are now under consideration to house NanoLogix production for both petri plates and for production of the new N-Assay ELISA-based rapid bacteria diagnostic. The projected expenditure for establishing N-Assay production and increasing petri plate production is roughly $900,000 for production equipment, $125,000 for the construction of two separate 70' X 30' production cleanrooms, and $40,000 for additional equipment such as forklifts.

This expansion is projected to result in market share increase for petri plate sales due to markedly improved economies of scale, and position NanoLogix with a significant production capability for the new N-Assay modified ELISA comprehensive bacteria diagnostic kit. The Company expects the expansion will result in ten additional jobs starting with the delivery and setup of the production equipment in 2017 and another ten positions upon expansion of N-Assay sales.

Over the coming six months we expect to finance the expansion through a combination of increasing revenue from sales of both product lines and fundraising through our current SEC Regulation D, Rule 506 offering for private placement sales of shares.

Any share issuance financing for this expansion is being structured primarily, but not solely, through a series of equity tranches and stock warrants. Using this method, the Company hopes to keep stock dilution to a minimum and will proceed with the interests of the shareholders in mind, including extending the timeline for expansion as necessary if equity costs are not favorable to NanoLogix.

The Company is preparing to seek licensees in Europe and Hong Kong for production of FlatPack Petri Plates under the recent EU FlatPack patent approval.

In response to queries coming to our office regarding our customization of the N-Assay for a multibillion medical technology company: we have sold 600+ of the N-Assay to them and will be supplying more in addition to further customization for other bacteria in 2017. As our arrangement with the client is CONFIDENTIAL, we will not be releasing their name.

Merry Christmas from Carol, Debby, Kim, Travis, Bret and all