Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
I look at the small percentage of the company I own and aim to come out of this exercise owning much the same proportion of the company. Freeing up resources for comparable investment elsewhere while retaining the same interest to any success Nanoco may have in future. My working assumption is that half the shares that could be offered for sale at 24p will be.
NGR
My understanding is Nanocos materials are going into STM sensors which are now in production. Those sensors can be bought by device manufacturers who can now start developing devices using those sensors. So a new round of product/device development for (unknown) company/ies to go through. Suggests orders this year will remain very small. With any devices using the new STM sensors unlikely to go on sale much before 2025. And those probably niche products.
Nonetheless, once published figures for Nanoco show it is nearing breakeven interest in their story is likely to pick up. With some unforeseeable trigger likely to prompt a surge at some point. Perhaps buying by a tech investment trust?
Moreover
My recollection is the Runcorn production line was paid for by an unnamed American company, thought to be Apple, looking to buy material from Nanoco. Apple did not go ahead for reasons, we were told, that had nothing to do with Nanoco.
Dow also built a production line in Korea to produce QD under licence from Nanoco. But that was never used either.
The presentation to investors on today's announcement now on Nanocos website steers towards several years before large take up of Nanocos materials. Disappointing. Looking to see what ST Micro are doing with the sensor they have developed with quantum materials is only slightly more encouraging. https://www.imveurope.com/news/sts-quantum-dot-sensor-set-volume-swir-imaging
They are making the sensors available to their customers to evaluate. May be small take up for niche products. But again large orders appear not months but years away. All seems very familiar.
Nanonano
I think it unlikely the two new impressive NEDs would have joined the Board if they did not have confidence in the CEO. Similarly STMicroelectrics and the Asian company must have confidence in him. A change in CEO would set back business development because any new CEO would have to build their own relationships with these companies. To my mind the company should focus on landing some of the business they say is being developed. If they spend the cash they have on reorganising themselves that would suggest a lack of self confidence, I would wish them well and move on.
In addition to delaying tax bills by 12 months paying some or all of the addition next financial year will show Nanoco as an income producing share in 2024-25. Stirring interest from new and existing buyers. Without that the settlement dividend will be offset by a reduction in the share price, perhaps a collapse if those holding for it sell up and move on.
I found 2021 stock exchange rules suggesting they expect dividends to be paid within 20 working days of the record date, usually two days after the dividend announcement. If payment is to be in the next tax year it might explain the delay. I have most of my holding inside an ISA but much outside. So paying the dividend next year would delay a substantial tax bill for me by 12 months. If some of the large shareholders are in a comparable position they may have let their feelings be known. First date they could announce a timetable on these lines is Monday!
As baffled as everyone else at delay in announcing the distribution to shareholders. I can't even see how commercial discussions can account for it: they could carry on and the results announced when completed. There does seem to be a lot of new stuff on the Nanoco website all marked with 2024 copyright. It conveys confidence the company sees a future. But provides no insight on the due distribution.
My recollection is ST Micro said its new sensor was going into commercial production in March. Once it is launched Nanoco may be able to say, if true, its dots are inside. Providing some reassurance of future business. At present there is little they can say about future business. Which is a problem for the share price after the capital return has occurred. Little to be gained from a quick dividend if the share price is decimated ex dividend.
When I first found this chat room the share price was 11p and I got a lot of abuse for not joining in forecasts of higher share prices within 12 months for what appeared a longer term project. I invested and have invested more as the price fell back. While the abuse switched from me and fellow realists to the Board for not delivering unrealistic expectations.
Cash is what counts. Question now is what happens when the loan to Magna becomes due. I think they will take the shares. Those less imbued in the story will fear they ask for the cash. So plenty more buying opportunities ahead. Best wishes. I believe the long term future us bright. But perhaps 12 months more depressed sharecprice and abuse on the board. Enjoy if that is your taste
Magna announcing start date of commercial production of their dms mirror in 2024 might be of interest to some puzzling why 2023 Q4 numbers down. Thought that blindingly obvious. But I guess it depends whose looking.
System solution fully integrates camera and electronics into the interior mirror
Driver and in-cabin occupant monitoring achieved with a single camera
Starts production in 2024 with German automaker
Magna has secured a high-volume, global award from a German automaker to bring its industry-first system solution combining its camera, electronics and interior mirror technology to the market starting in 2024.
https://www.magna.com/company/newsroom/releases-archive/release/2022/02/07/news-release---magna-lands-industry-first-award-for-integrated-driver-and-occupant-monitoring-system
Looking for information on the geographical spread of Nanocos revenue I came across the following figures for the year to 7/23 [7/22] on page 108 of the 2023 Annual Report.
South Korea £2963k [0]
Holland £1423k [£1474k]
Japan £447k [£244k]
France £385k [£348k]
Taiwan £323k [£351k]
.....
Total £5618k [2467k]
A decent spread of countries. Setting aside South Korea/Samsung, growth in revenue came from Japan. I don't expect a geographical breakdown with the half year report on 8 March. But we might get an update of the chart mapping development of Nanocos sensing portfolio (page 15 of the annual report and various presentations).
Your negotiators always look for signs of fallback positions. My guess is Samsungs negotiators looked at what the people who funded Nanocos case had done before. And with hindsight that is what others should have done as well. It will be the funders who decided to settle.
I hope BT was focussed on the negotiations with Samsung and sending them signals to try and get the best possible deal. Without the risk of a jury trial. More fool us if we failed to appreciate that. And I include myself in that. I now hold a significant chunk of Nanoco. The forthcoming dividend will help diversify a bit. But the key thing for me is Nanocos future business. And it looks like we have to wait 18 months more before significant orders are expected. So I expect a low post dividend share price. And hope the Board remain focussed on future orders.
Nanonano
The size of the promised distribution (10-12p per share) and lack of news on future contracts seems to me to make it highly likely the ex div share price will be in or close to, single figures. A share buy back programme might make a temporary difference Though I doubt it. A lot of contributors on this board arrived during the court case and I expect them to depart as the settlement is made and distributed. We then have an 18-24 month gap before finding if the next generation of nano materials can be made commercially successful. I have a lot more confidence in BT than ME. But don't expect the market tp follow. A bumper dividend, 18mths without much encouragement then boom or busy seems likely.