The financial backing should accelerate the development of the technology, which will help manufacturers of home and personal care products create longer lasting fragrances.
Funding from consumer giant
New York-based NaturalNano declined to reveal the identity of its new corporate partner but described the company as one of the world's largest manufacturers of consumer products.
The consumer goods company will be adding the fragrance-filled tubes that NaturalNano is in the process of developing to its new products.
In the meantime the additional funding will help NaturalNano to perfect its technology.
Endorsement of commercial plan
"This funding award for new product development is a strong endorsement of our technology and our commercialization plan," said Cathy Fleischer, President of NaturalNano.
Financial support was awarded on the basis of tests conducted by the global Fortune 500 consumer goods firm.
"By continuing to build relationships, execute joint development agreements and facilitate innovative products with industry leaders, we are working to bring a filled-tube product to market," added Fleischer.
The fragrance-filled nanotubes could be added to a range of personal care and cosmetic products from skin care to perfume to help their scents linger for longer.
Sunscreen potential of technology
NaturalNano's technology also has great potential in the development of sunscreen as it allows for the slow release of active ingredients thereby ensuring that products last longer.
News of the latest funding agreement comes months after NaturalNano signed a deal with the US Naval Laboratory that gave the material science company access to its extensive expertise in the field of nanotechnology.
Nanotechnology is the science of manipulating the properties of tiny particles, measuring one billionth of a metre and has a broad range of applications from computer chips to personal care.
A human hair is 80,000 nanometres (nm) wide, a red blood cell 7,000 nm wide, and a water molecule 0.3 nm wide.