(Alliance News) - Nanoco Group PLC on Wednesday said it intends to raise a minimum of GBP2.2 million, before expenses, through an offer for subscription.
The quantum dots manufacturer said it will offer 12.6 million shares at a price of 17.5 pence each, being a discount of 2.8% per cent to the closing mid-price on Wednesday.
The stock closed 4.3% lower in London at 18.00p a share.
The net proceeds of the fundraising will be used to extend the company's cash runway at least to the end of calendar year 2021, it said, while supporting its core IP assets and its business operations during the ongoing lawsuit against Samsung Electronics Co.
Back in February, Nanoco had filed a patent infringement lawsuit against various Samsung entities in the US District Court for the Eastern District of Texas. The lawsuit claims infringement of a number of Nanoco's US patents which relate to Nanoco's unique synthesis and resin capabilities for quantum dots.
Turning back to the fundraising, the company's largest shareholder, Lombard Odier, has undertaken to subscribe for GBP2.1 million of new shares, which subscription shall be subject to claw back depending on the amount of the other aggregate applications received from other investors under the PrimaryBid offer.
Some directors of the company, or persons closely associated with them, have given written undertakings to Nanoco to subscribe for PrimaryBid shares at the issue price with a total value of GBP61,000.
"The fundraise will enable the company to address further new commercial opportunities, while also maintaining our balance sheet during the lawsuit against Samsung," said Chair Chris Richards.
Nanoco also said it has made "excellent" progress in delivery of services under the recently announced development agreement with ST Microelectronics on nano-materials for use in infra-red sensing applications.
The company said it continues to trade in line with the expectations with a cash runway that extends through the second quarter of 2021.
"We have also recently delivered new commercial revenues from our underlying business activities in both the Sensing and Display sectors. These wins support the company's short term cash position and also hold out the prospect of significant future revenue from commercial production in both of these sectors in the short to medium term," said Richards.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Nanoco (NANO)