Member Info for Kooba

Because it might convince us they are ahead of the game not being overtaken in their silence.

Be good if Nanoco managed to push such sector thought leadership pieces out!

https://www.azosensors.com/news.aspx?newsID=15658

”Once again, buybacks do not reduce market cap, since they tend to increase the market price at least proportionately.”

If you believe buying back £40m of shares in a £60m market cap company will not impact the market cap…you are wrong. You are saying that the organic business currently valued at nothing suddenly becomes worth £40m. That will not happen unless there is some dramatically share price news on trading at the same time.

True if they do a market share buyback it will likely support the price as it will mop up any sellers but most share but backs have criteria in how they are executed and due to the scale here it is unlikely to be a straight on market mechanism as it will take forever. I still think there is likely a tender at a premium which might boost the share price short term until completed but ultimately the valuation will revert to reflect a company with £40m less cash in it. I don’t need investopedia for an opinion and whatever you are reading is wrong due to the scale of the capital return.

True. I would expect them to announce the process ahead of actually receiving the funds..so they can prepare any necessary shareholder meeting to put whatever mechanism they chose to be effected promptly on receipt of funds.

This is a very standard resolution that is in place by most listed companies , Nanoco had the same at 2022 AGM, resolution 15 https://wp-nanoco-2020.s3.eu-west-2.amazonaws.com/media/2022/11/Nanoco-Notice-of-AGM.pdf

So i don’t think this gives a steer on how they plan on distributing capital.

It may mean they need a single resolution GM once they have decided next year…depending on how they decide to proceed after consulting their largest shareholders. Think LOAM will favour a tender at a premium , which would need a meeting. Think a dividend can just be declared though might not suit all shareholders, staff or ii’ s.

That reflected the full value of the infringement and licence for the life of the patents on a global basis that would be transformational to shareholder value ..people seem to forget that .

The key is to under promise and over deliver ..not something ever managed by this company.

Noel ..the money is contractually owed to the company and undoubtedly fully factored into the current market valuation…it will not suddenly increase the company’s value when it arrives in Feb ..it is all factored in…so when the money is distributed it will also get factored in by the market at likely £40m less once the distribution made.

Amer..i do not incorrectly state anything on a distribution and if you object to anything i post which states facts then I guess that is your problem or mine.

I stated that however they distribute cash it comes off the balance sheet and that the assets do not remain the same.

True a dividend or tender or share buyback may have different impacts on the share price over different time periods but the impact on assets ends up being the same.

What are you talking about.you think .cash (due) on the balance sheet is not an asset?

The cash is due and the cash balance come end Feb will be a short £60m..exactly where the business is valued by the market…if you take £40m out of the company you think it will still be valued at £60m.??

Yes there could be operational positives ( or negatives) before end Feb which could impact the valuation..but unknowns.

What is known is that the company will not magically be worth £40m more when they pay £40m out to shareholders however they make the distribution.

Whether they pay out as a dividend or tender/ buy back they are using cash to do so …this cash is then removed from the company and removed from the assets held on the balance sheet.

No idea why there is a notion that the companies value remains the same with £40m less cash in it. Nonsense.

The asset value stays the same after they pay out £40m of the £60m of cash they will have ..that’s interesting do explain how you come up with that conclusion…

"We have now delivered all of the goals set for CY23, winning the IP litigation and entering commercial production. Through careful use of the retained funds from the IP litigation, we will continue our leading edge R&D, our efforts to deliver further value from our validated IP portfolio, and continued commercial production of high quality nanomaterials from our Runcorn facility.”

Thanks Brian for delivering that value…and the promise of further value.

17.90 GBX -27.10 (-60.22%)year to date

17 Nov, 08:23 GMT • Disclaimer

Hell i’m all for critical thinking !! I thought you were being ironic around BT’S critical milestone .

"Today's announcement records a critical milestone in Nanoco's evolution from an R&D first mover to an electronics materials production company. ”

For a critical milestone the unchanged share price reaction was not mirroring his excitement.

Having said that BT did say he didn’t think the price would move on the 6th Jan rns ..so maybe not much of a judge of sentiment and impact in markets.

I must say with their timing just ahead of the expanded Asian relationship and one must presume at a time when this contract was being fulfilled LOAM do get quite lucky in their market timing…just hope its not them drifting any out today !!

There is definitely nothing negative! However the markets muted response ..i notice now unchanged on the day in the auction once again shows the market is not prepared to take anything on trust with this company and for all the initial interest sellers came in on a relatively high volume day. I was expecting a better move in what are more risk on markets for now.

Much of what the company are doing could be wrapped in in confidentiality agreements but they do need to up their game considerably with regards comms with sufficient detail if they expect the market to share their seeming enthusiasm. Is this a very small one off completed a a week or two contract or the commencement of an ongoing order…it appears the former but i can’t be sure.

Troublesome in response , its rather difficult to know hoe critical todays news is as without detail on the underlying customer , product or market it faces its rather a guessing game. With the apparent position that they have received a small order of two materials that are going to be employed in an product (s) that are going to market then i suppose that is a first step and also shows that the two materials they have been working on are suitable for use in a product which is the next step in their development. So all good and i suppose critical if you intend growing an organic business using your remaining technology is finding someone who wants to buy it.

The scale of the order and the fact it seems the order was received well after the results and presentations one must presume and there has been enough time to get the contract , fulfil the terms , ship to the buyer and invoice the buyer means things all happened in a few weeks it seems. I still think it odd they announce a price sensitive , critical , milestone etc etc contract after its done and dusted than when it was received. One must presume the contract was awarded a few weeks ago around the time of the Asian customer rns. Maybe they didn’t want to overwhelm the market with so much good news and spread it out…joking there they can’t do that , but still would like to know why price sensitive news was not released to the market without delay.

So positive. yeah , critical ? There’s no way one can extrapolate from todays news what this exactly means in terms of future demand as there is no detail.

Nanonano you say posters are Clueless…i think this is a silly comment now an even more silly response , how do i research you off the cuff remarks exactly? Back something up hey?

The other thing is if this order has been fulfilled , shipped and received by the customer…when did the company get the contract? And why was it not announced then ..if the order was small then presume short production run or met by inventory but still there is obviously a gap between the order and now. If it is a major milestone and price sensitive as the announcement today says, why did they not announce th receipt of the order to the market without delay??

Nanonano …what in particular are you finding clueless?

I think folk are just trying to understand what it means to te company from a very vague rns .

Sure it’s a positive but the company are giving precious few clues as to the impact on building sustainable revenues…i’m unclear what you find clueless in trying to understand that.