Member Info for Kooba

They are asking for board representation not control of the company ..those who can count can see that easily enough. Equally if they want to privatise..which seems entirely the opposite of what they seem to have proposed then that needs a high majority vote in favour.

They seem to want a similar outcome to the strategic review..to sell the whole operating business and to become a cash shell . That can either then be distributed to shareholders or used as a vehicle to make an acquisition or change of purpose ie as an investment fund.

Either way the shareholders will have a vote.

This nonsense about them taking the reigns and controlling the company just shows total ignorance of how a board works.

The same ignorance that proclaimed Milkwood were buying because they supported the management..they clearly don't trust the management to deliver value for shareholders and want to protect their investment by having some oversight as the largest independent holder.. Pretty simple..and why the board refused is the question that should be asked.

Previously they bent over backwards to please their largest investors and allowed Henry Turcan on board who had not industry or litigation experience at all and just got inside for a year ..most of which time they just sold their holding down..very supportive.

This comment certainly indicates that Milkwood have talked to the company and asked for representation and that has been refused. However since it is the boards intention to dispose of all the assets leaving a cash shell they seem aligned on that position…maybe just maybe Mr Summerton does not trust the incumbents to execute on the strategy that is in the best interests of shareholders ..the appointment of a new CEO with no UK M&A and listed experience looks odd if you are genuinely in the process of trying to sell the business.

I would be in favour of them having representation and oversight of the process and the board should have encouraged their inclusion on the board and participation.i would also be interested in what their plans are for using the listing as that could add value above and beyond the resulting cash position.

“Mr Summerton, on behalf of Milkwood, has previously in dialogue indicated to the Board the intention to acquire a significant stake in the Company, divest its assets, and convert the Company into an investment company, utilising its cash and listing. “

Supportive long term shareholders my ar*e…obviously not convinced in current stewardship and who can blame them. No surprises to folk who have a clue and good to see some increased pressure from shareholders. The current board need more challenge to deliver value one way or another.

Let the games begin.

Hoping there will be more to discuss next week ..

I think there is much stalling going on as they try to come up with a coherent plan should the business fail to find a buyer..it will be tricky trying to convince shareholders on a plan that will undoubtedly promise more jam tomorrow whilst burning through the remaining cash.

They were all very keen before the election

https://www.linkedin.com/posts/perran-moon_yesterday-shadow-sec-of-state-for-business-activity-7173206315853402112-VmkC?utm_source=share&utm_medium=member_ios

It is meant to be a budget friendly to companies in critical metals ..mentioning importation.

Far better to help finance uk companies proposing to mine critical metals in the Uk and provide good jobs in economically struggling areas ? Hoping that some financial assistance is given to projects like South Crofty.

https://www.mining.com/web/uk-critical-mineral-importers-to-get-financial-support-in-budget/

I imagine Einstein if he had incomplete data would go back to the source to clarify exactly what was the complete picture and base an opinion on that rather than spouting off nonsense and calling others that didn’t do their homework thick.

Maybe try calling the company and clarify yourself and stop digging deeper holes.

The question remains though with a clear intention of finding a buyer for the whole trading business..lock stock and barrel , leaving a cash shell whether there is any prospect of finding a respectable offer? In an ideal world i very much hope they do…i understand the advisors are not on a big retainer but are rewarded on success in achieving a sale so they are motivated.

It’s what they do if that doesn't happen where the plans become flakey and need much work to show a clear path to commercialisation some way down the road and not just more blind allies and cash burn.

Dmitry Shashkov on LinkedIn

I am finishing my engagement at Exyte by the end of June and looking for a new role. Location is flexible (worldwide). Thank you in advance for any connections or opportunities. #OpenToWork

I don’t know if finishing my engagement means pushed or jumped..

Agree Smithy on messaging you can’t develop a business and sell it ..since “The Board has therefore concluded that it is in the Company's best interests to appoint advisers to review the options for the Company's business and assets, including the potential for a sale of the trading business (including IP).” They clearly see a corporate solution as the best outcome …developing the business would seem to be if they can’t sell it. It’s difficult to see however good the new appointment is that they can conjure up revenues out of nothing inside 2 years really and then it appears a long shot from past experience.

Xenon ..if it takes him 4 weeks to prepare to present an already produced narrative i think they have the wrong guy.

I think there is a bit more stalling for time going on whether that is because they hope to find a corporate solution “at pace” or whether they are trying to come up with a viable plan B and are still in discussions on the end of agreement terms with STM who knows ..most of what they said was the reason for delay

“The Group now expects to announce its results for the year ended 31 July 2024 on 20 November 2024. This revised date is later than previously notified and is due to ongoing work to complete the necessary disclosures in the annual report and accounts which have arisen due to: the previously announced end of contract with the European customer; the Board's review of the Group's strategy as announced on 3 October 2024, and the announcement today of Dmitry as the new CEO.”

All these are post period events and should not really impact on when you release your results…but do form some excuses i guess.

404x..agreed..guessing they wanted to announce the CEO and that might have dragged..but it appears the appointment was not the only reason for delaying so they should have informed the market earlier yup.

The fact they had no presentation arranged points to them knowing the 22nd was not going to be results date for a while imo.

Ginodog that is true if one looks at CPS ( a private equity owned business) he was an NED who moved to CEO and the business was sold a year or so later ..so could be there to tidy up for disposal..the problem is what are they selling and is the real value in the IP just walking towards expiration.

Think he is based in the USA so not sure how hands on he will be ..its quite some commute to Runcorn !

I think the delay is understandably i agree the financials are an historical snapshot but also one expects a commentary of what happened during that year and what are the prospects going forward..i think the new CEO starting with immediate effect has been given a month to come up with a narrative around the options available..by then there might be an idea of whether there is any M&A interest or whether the company is going to spin the dice yet again to try to find a sustainable commercial foothold. ..they may also still be negotiating on the exit terms with STM which could be meaningful in terms of future direction.

Who seems to have a more appropriate background of experience …

Seems we will have a wait for him to get his feet under the table to tell us where they want to go but it does question how committed they are in selling the business or whether they were just going through the motions to deflect the attention of activists.

Nanonano both emberion and SWIR say they have their own in house QD materials.

“Emberion has developed a library of material solutions that enable creation of photodetectors for the full spectral range from visible to long-wavelength infrared radiation. Selected material solutions enable monolithic integration on the top surface of CMOS wafers.

Our team has created more than 100 patent applications in related technologies and we have a steadily growing IP portfolio. Our ground-breaking work has been reported in numerous publications in high-impact scientific journals.

Emberion’s innovation in the integration of CMOS electronics with novel nanomaterials including the design and fabrication process creates a unique value chain to create a highly efficient and scalable technology solution.”

SWIR already has a CQD sensor out using their in house materials

https://www.swirvisionsystems.com/acuros-vs-sony/

Maybe there is still hope with Asian customer on to Sony ..but as with the other big players we have no idea what they are working on and the £600k a year r&d work with Nanoco is chicken feed.

I am sure if they are cutting £2.6m off £7.6m cost base in the short term as they have guided ..most of that will have to come off staffing costs…I’m sure that things are not all normal and happy back at the ranch.

But whose sensors are those materials going to go on?? The development process with STM was exhaustive and customised to their kit and using their proprietary quantum film I don’t see that there is a quick opportunity to market to these niche sectors they talk about…they need a new sensor company partner surely ( I was looking at IQE today and the work they are doing in ..as an aside..could they be a buyer?? )

But yes they have the best part of 3 years cash ..so no imminent crisis at all …but they will need a convincing model put forward by a convincing new senior management of there being a commercial future which might be more of a struggle…there seems little point burning through that cash if there is little real prospect of success …the confidence levels seem tempered if they think the best option is to sell all the operations and IP though!

The other point on the comfortable cash position is that they intend returning more cash to holders which will impact the cash runway. ..hopefully much will be clarified tomorrow.

It was all rather garbled in the rns on strategic options in my view.

If they don’t find a buyer the company will have no excess capital to distribute as will have to again go it alone in meeting niche sensor demand ( much more info required on how they might) and to continue the Asian Gen2 work programmes or indeed in pursuing licenses or awards from infringers.

The founder might know the technology inside out but academics running business especially ones that have failed to gain commercial traction over decades will not give any confidence to shareholders in my view.

The two new non executives should be leading on sale options as difficult decisions might be needed…and they have both got experience in M&A transactions. if the company fails to find a buyer and goes it alone they need to get a new CEO and Chair lined up pronto to explain how they might succeed in building value when so much has failed before.

See what Tuesday brings..hopefully some answers not just more questions !!

I understand STM r&d total cost on the qd SWIR sensor product (s) ran to €300m.. even for them it was a serious investment and they were committed to the solution. The issue seems to me to be more from the underlying customer end with the first major customer deciding not to proceed with Gen 1 leaving the smaller niche interest uneconomic for the scale STM operate their FABs at in producing smaller scale production runs…so they drew a line. But still odd why they pulled Gen2 which always was the real scale opportunity we were told . Unclear to me if that is to pursue another approach being developed in parallel or to wait to see how the market develops and when. STM have been under pressure and likely had to look to cut some R&d work without short term routes to meaningful sales …maybe they revisit in years to come?

On the Emberion product I note …” new ultra-low cost SWIR (Short-Wave Infrared) sensor that brings the sensor production cost down to €50 level in large volumes” … that is just production cost not sale price …seems it will be far higher than STM were targeting and would be a major factor in devices with multiple sensors…so they have a product but is there a market?

I see no clear line that their products have anything to do with Nanoco materials ..though they could be infringing something I guess!!

Hopefully the results from Nanoco on Tuesday will be open honest and concise in where they are and what they want to achieve and on what timescale.i is clear to me they are trying to sell the whole QD business leaving the company as a cash shell. ..great if they get a respectable offer…but what if they don’t what is plan B and who will lead the company in trying to recover shareholder value??

They only need to explain the complete failure of their commercial strategy and why they think ..although there is much potential still ( rinse repeat) that selling the whole QD business lock stock and barrel is the way forward. Last message very garbled.

The key for me is what if there are no buyers? What is the strategy ..including who they partner on sensor niche markets ..zero clarity around that…how they go after infringers and most of all who will be Chair and who will be CEO going forward.

The whole future of the business seems to be in the same hands right now of those who have so successfully destroyed value through their efforts that im not sure anyone can take much more ..but the incumbents are clinging on for all they are worth …why??

The company do their presentations through Investor meet company..like many am signed up for invites to their meetings.

https://www.investormeetcompany.com/companies/nanoco-group-plc

No meetings scheduled yet

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