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Seems straightforward
Signs Manufacturing Contract with Dow
Published on 30/12/2014
Nanoco Group plc (AIM: NANO), a world leader in the development and manufacture of cadmium-free quantum dots and other nanomaterials, today announces that it has signed a manufacturing contract with The Dow Chemical Company (“Dow”) to set out details of how materials produced by Nanoco’s production facility in Runcorn will be supplied to Dow as part of Dow’s worldwide licensing agreement with the Company. As previously stated, Dow is expected to begin commercial production of Nanoco quantum dots in Cheonan, South Korea, in the first half of 2015 to provide high volume supply for its display industry customers.
The manufacturing contract includes the pricing and payment terms associated with materials supplied by Nanoco to Dow.
Michael Edelman, Nanoco’s Chief Executive Officer, said: “We are very pleased to sign this contract with Dow to formalise the supply of cadmium-free quantum dots from our Runcorn facility to Dow ahead of mass production from Dow’s facility in South Korea.
President AMS presenter (Pre Q&A) in this:
https://78449.choruscall.com/dataconf/productusers/stm/mediaframe/40522/indexl.html
At 18 mins refers to '27 to 60' sensor improvement that sounds like MEs reference to silicone enhancement?? Suggests Nanoco essentials if so? At 25 mins refers to 4 partners. If Nanoco one of them it would take a while to do a contract without them all agreeing/settling etc.?? So modest expectations possibly. St M seem to have good (high financial) prospects of all kinds including auto. 2022 main target perhaps with 2021 set up. Passing thoughts. Haircut more important.
Reminder of 2017 Edison
‘Stall in progress at Merck
Progress at Merck has stalled somewhat, in part due to management change. The company has a development production facility in Darmstadt, but has yet to commit to building a production-scale facility. Merck’s main focus appears to be on second-generation QD filter displays, which are likely three or more years away from a significant volume ramp. Nanoco will continue to supply product to Merck for development shipments until it decides to build its own plant. We also note that Merck is working with three Japanese film suppliers, though we are yet to see these relationships pay dividends with regards to revenues for Nanoco.’
Better getting products from Nanoco:) Maybe they do, indirectly ... "Apple sources the majority of its OLED panels for the iPhone from Samsung Display. It’s required to meet the minimum order quantity or else pay a penalty. According to reports, Apple is now looking at a $1 billion penalty payment to Samsung Display"(Copy/paste)
Seems to need it for present activity - afford deal arrangements, maintain high level staff for research and development - not for extending next year's cash.
"The Fundraise will enable the Company to address further new commercial opportunities, while also maintaining our balance sheet during the lawsuit against Samsung. The Fundraise will also add stability to the business and allow us to retain many members of our highly skilled team.
A couple of new modest level display contracts are expected to expand 'meaningfully and significantly' and to be talked to publicly in the market in the not too distant future. Expected to increase cash beyond this time next year. So, some upside , perhaps, within the more prolonged court settlement period. Meanwhile, St Micro has two products ongoing from the previous contracts (didn't actually stop). The first now sorted from the past and another on the way for commercial prospects. Edison
So if it takes approx 2 years to get the case to court and if, as ME suggests in Directors talk, most cases are settled prior to court, then timescale for receiving hundreds of million of dollars?? is likely within the two year stretch. $14Billion, minus x billion marketing, based on some level of %age? Apple got over a billion I gather. Then ongoing income and further cases if Samsung do not settle on that. Meanwhile some modest new display contracts apparently in place which may expand over time. So just got to wait I guess unless something new turns up ... it is a sector on the rise, after all.
I guess all have noted this already but I repeat it does suggests a larger contract prospect - if Nanoco can ever get it done!
https://cen.acs.org/materials/electronic-materials/Merck-KGaA-buys-700-OLED/98/i17
700 patents must have cost a few bob, and long standing relationship with Nanoco must mean something?. There is clearly some enthusiasm in Merck for display sector, in various forms. Concern can only be that yet another lack of outcome - but watch this space (and time?), someone said.
ME on Merck contract: 'Watch this Space'(Interim Results). Current contract ends 30th June - concluded by end of this month? Merck website shows considerable potential for OLED display and it becoming increasingly important for their 57,000 employees' future. Not a modest company. I don't think this will be the 'modest' contract as before. IMHO (Then China, SK, Taiwan and japan to follow .... some modest prospects, perhaps, by end of year)
Now clearly stated that shareholder funding now in the plan - this based on the high likelihood of some successful infringement outcome. Could take many years! The prospect remains that Nanoco will start, finally, to generate commercial activity at significant profit. Electronics connection with silicone etc etc in Runcorn factory will lift this company and can occur within 12 months. Contracts will be comfortable with the extra funding. How many new (low cost) shares ...
Yes, ddubya - was vaguely curious about that - ‘If contracts are signed and it is of meaningful value the SP could bounce upwards rather quickly’
On another matter re infringement. We now have third party investors who may wish to get maximum outcome and not be entirely open to (possibly) modest, short term deal twixt nano and samsung.
Will this have - work commenced in both programmes in April 2020 - any affect if signed contract informed on RNS (fairly soon, I gather)?
‘we started discussions on two new programmes of work with a large participant in the semi-conductor sensing supply chain. One programme is focused on the current generation of infra-red sensing nano-materials as well as potential customers and applications beyond the US Customer. The second programme is for a new generation of nano-materials, also in the sensing markets, but for a different potential application. Work commenced on both programmes in April 2020 under purchase order cover while the new JDA is being documented (and is expected to be signed shortly).
Observed sometimes that delays are held due to something ongoing when companies prefer to have it confirmed if appropriate. Confirming their hope of secure finance to the end of December might be so. Not sure but thought I heard that it is around 80%+ who have so far succeeded in scheme. A delay due to other things more significant would be good:) But, hey ... survival mode for now.
Good to hear Government furlough arrangements finally getting done. Gives some reliance on end of December timing for some commercial contracts, albeit short term, and maybe some connected funding if so. With whats going on now and including probably long extended infringement (so many with Samsung), sale must be complex. Need to be able to pay the bills until all resolved - one way or other. BTW Noticed Plessey doing promisingly well including related to contract with Nanoco’s green and red dots (from a year ago).
RNS seems confident on government scheme. Hope they have got that right. Have proper case to make. Its said that the virus is affecting their revenue and causing loss of employment and, therefore, valid. Good news if so ... Any new commercial short term contracts will give sales and infringement yet more time - seems Nanoco is fairly confident of such deals by December. Ironically, things better in the worst of situations!
Hi T
What is not a ‘maybe‘ is that they are still in sale process. Feels like its over but they clearly state its ongoing.
Second is that we will have an announcement fairly soon - within 6 to 8 weeks max (contingency money needed by then)
Of course, nanoco electronics (silicone low cost etc) really is of very high commercial value.
Within realm of possibility -
“The Company is continuing (constant, enduring) to review its … [potential] sale of the Company …. and will make a further announcement .... “ (Edited:)
Potential?:
hidden likely possible probable budding future abeyant conceivable dormant embryonic imaginable implied inherent latent plausible lurking prepatent? quiescent thinkable undeveloped unrealized within realm of possibility
Positive and negative views are both false. Truth starts with facts, facts are based on probability - and then add some common sense. Sadly, not my best of skills. If April 2nd still infact available for resolve then hopefully, but not speculation, some common sense will apply. Some sensible options available to both parties - Samsung can get a very cheap deal (and avoid yet another legal hassle that probably won’t benefit them much). A very cheap deal is a Very big deal for Nanoco (get the bills paid, protect IP and get some ‘sustainable’ (as ME states is his goal) revenue. Well, maybe.
Hi ddubya- cant remember how often ME has expressed his ‘we are excited about’ and then nothing happened. Maybe he needs to be less optimistic and more realistic. Anyway, in struggle to find their exciting strategies anyone know what this (in strategy on annual report) means ‘ In Life Sciences, the Board recognises that this application requires different capabilities from our core electronic materials business and we continue to explore a number of strategic options, including a possible spin-out of this business line’