Member Info for Kooba

On the subject of the patent sales ..selling 118 patents for $90m to Samsung i don’t think is in any way a guide on what the remaining 370 patents ( including key core) are worth.

Although reported to shareholders as a straight asset sale separate to the licence which sorted the litigation it was a ruse ..whether for Samsung to save face or for Nanoco to make use of tax advantages to selling patents (patent box tax relief) is unclear but it cannot be taken as showing the correct value of those “non core” patents..otherwise the remainder could be worth multiples of the market cap which i don’t think is the case.

Nanoco do indeed have full use of the patents sold and the remaining IP could have some decent value to the right buyer ..although Nanoco has never got commercial traction their patents have been used in by far the most successful use of CQDs to date in the Samsung displays.

Some of the core patents do not have long to run but there are younger supporting ones which might prove effective at protecting Nanoco IPs position.

Although doubting Milkwood are a bidder there may be others in the industry who are running the slide rule over it as a patent land grab in the sector or as a low cost way into what is expected to be an important disruptive technology in a number of fields.

I think its days as a listed company may be numbered.

A good list X ..there may also be value in a stripped out cash shell as a vehicle at a premium to that cash or as an IP litigation vehicle. The current board having made quite a thing of going after other infringers has not actually appeared to do very much..but as with other wonderful prospects having taken a deal nothing much has ever come good.

I doubt very much that Milkwood will bid ..i think they are more interested in having a say in how this is managed post STM and hopes of near term revenue evaporates. They will want to effect control over the remaining cash and cost base pretty soon and then extract value from the remaining assets ..they have probably already worked X’s list in terms of some of the parts and must be aware of the rapid depletion in the cash balances forecast..they will not want to see that continue.

Whether they work unseen or make an open challenge might depend on what is left of the board coming up with as a strategy but i doubt they have very long to do so and i doubt they had a contingency plan as they certainly didn’t allow for the STM eventuality in terms of their capex and opex budgets..for a company walked away from so many times it beggars belief that once again they put it all on one shot.

So Milkwood over 6% , looks they want some leverage ..now.

I think you will find the new shareholder and likely Cable Car and others will not hold fire in terms of how the company is run in future and what is the course of action they favour and indeed who runs it…whether the company gets to an AGM without direct challenge i think is the question. With the burn rate close to £600k a month it seems i doubt they will be patient with the current board in coming up with a comprehensive plan to stop the haemorrhage and come up with a strategy to restore shareholder value.

I believe the game is afoot ..watching for disclosure's, i think the new buyer has cleared out any loose stock below 10p.

I did spot something rather interesting on one of Milkwoods holdings quite relevant to Nanoco.

I’m sure Terry has as they are so switched on , so will let them inform this time ..might make a change.

oh terry if only you ever had anything original and intelligent to say , alas it’s just rinse and repeat irrelevances and terrible takes at every turn …if only you didn’t believe your own bull**** it would be a brilliant parody account of someone who is always wrong . alas though its just ill informed and tedious but i think it probably gives the right impression of the poster. chin chin.

Decent volume again and with the company keeping its hands firmly in its pockets it seems there is a bit of stake building ongoing ..might see Milkwood moving above the 5% level this week ..someone is certainly busy mopping up the selling.

TG2D ..think you put in the wrong merger partner..presuming you referring to Quantum Science down the road rather than QD vision a company taken over by our old friends Samsung in 2016.

I don’t really see the benefit of putting the two together except for academic reasons ..neither company has any revenue but both have decent sized cost base…Nanoco far larger. So whilst they might be able to remove some duplicated costs you still end up with no revenues.Nanoco has a far wider IP portfolio ( some created by QS guys) so no great advantage there.

I would love to see someone come in for Nanoco at the same levels as Samsung did for QD Vision though ..”Samsung did not confirm the exact value of the deal. But it is estimated to be some $70 million” that was all enterprise value 8 years ago so would be close to $100m for nanoco plus their cash equivalent , so 38p a share type stuff…now fantasyland I'm afraid.

I think the IP could be worth £20m plus ( unfortunately not much can be read from the patent sales in settlement) but could be worth more even though some core patents lifetimes are running down. With the company still having £19m cash one would hope 20p offer achievable but could be a bit more if contested..everyone knows they are a sitting duck and unable to defend themselves right now so maybe there will be some action…many possible interested parties though have already partnered and walked away though that doesn’t mean they wouldn’t want the IP just to try to stymie others in the market.

Results came out on the 17th Oct last year ..can they come up with a realistic plan? Can they find someone competent to run it ..or sell it?

Why they are buying into a blown up tech stock with no real strategy but having a chunk of depleting cash and some potential valuable patents is the question. If one takes it as an endorsement that they see some value in the SOTPs as I do then fair dos …if ones sees this as in anyway endorsing the management..when there isn’t a senior leadership team that is staying is probably wrong.

I would say it’s an opportunistic move looking for the company to be put into play…maybe they are anticipating a bid?

How they go about extracting the value will be interesting..I doubt they have any real care for the company and its long term holders…they will just want a return and it strikes me with the current cash burn they will not be slow in showing their hand.

This might reenforce the need for a rapid strategic review and cost reduction needs to be done or the company might get pushed into it. Time and cash move on.

Wake up and smell the coffee …maybe then you wouldn’t call everything 100% wrong.

It’s just a delay there might be orders in AUGUST..it only says to the end of this FY…yeah terry well read.ffs.

Terry can’t even get through the simplest levels of comprehending what is going on in this company…it really is very poor show and demonstrates a complete lack of knowledge and education in business and markets. Tell us about the number of shareholders that supported the board again Terry and how relevant that is now the company has walked us all down another blind ally and has no strategy..go on that would be interesting. It’s all you have and it means nothing right now. All their friends have left ..its just you now Terry trying to protect this failed management.

Worthwhile…To break up/sell or move to be a IP shell that is how you can extract value …i doubt they are investing long term in another spin of the dice at commercialising the technology…maybe they know other holders?

“This morning a sliver of sunshine from behind the clouds and I am forced to the unavoidable conclusion that Mr Summerton doesn't read the silly stories on that abound on this forum”

Another very back take from the king of very bad takes.

See how long terry thinks the newly disclosed holders are nice and friendly long term investors and not just going to try to get it broken up for a quick return maybe with some existing holders …IP shell anyone ?…tick tock.

I believe since the first negative update on delays the comms have been more rigorously vetted by the board..that sounds rather crap in the light of the second update saying cancelled but i believe/understand that future comms will be looked at in different light to those on BT watch as i understand there is concern at the somewhat optimistic and confident tone that has permeated over the past few years that has not n been met.I agree there is not particular reason to delay until the announcement of historic results to discuss future strategy at all. However they are looking for a knew CEO to head up a new startegy ..so might want a say and they are hopefully going to get some clarity on the use of materials resulting from the years of work with STM..as that could or could not throw up some obstacles.

As to STM we have no idea what other technology they wer working on to address the same market..they are not such a one trick pony by any means …and suggesting they are distressed is ridiculous. They may well be a big winner with their Metalenz tie up in mobile phones if thats the way things go…and Samsung too. None of it using QDs it seems.

Its difficult seeing a clear route forward where Nanoco is not pretty much back at the drawing board on new materials for customers ..they have many recipes true but customisation and integration might take years on new products…they could manufacture for bog standard QD display for smaller customers but nobody is going to get fat on that.

Oh well Milkwood think they see something worthwhile.

Yep most hedge funds will say that kind of thing..bit like the Vikings saying they visit foreign lands to make friends and better understand the culture.

If they are backing the current board which i see as highly unlikely ..what strategy are they backing? I don’t really see one at the moment. They have stopped the buyback ..thats one thing having spent £2.5m of the £3m..but apart from the long term potential with no guarantees around any commercial demand from the Asian customer in 2-3 years ..its all very woolly and all very small stuff it seems.

Maybe they will try ..along with others to influence what happens next. ..all part of a much needed strategic review. It does indicate they see upside and limited downside i guess but time here is essential in extracting value.

If thats possible Flying!

As a hedge fund i guess they are looking to make a return on the equity purchased ( from LOAM)

How they do that will be interesting to see..but again to have some power they will likely need over 5% to call a GM …but they could already have other support for change on the register already. Whatever the plan ..the current burn rate eats at the cash so i doubt they are going to sit on their hands.

The main guy

https://www.valueinvest.com/london/rhys-summerton/

Seem quite activist..would be surprised if they are a long term supportive shareholder.

https://www.theaic.co.uk/aic/news/industry-news/milkwood-bars-downing-strategic-wind-down-wants-to-run-fund-for-free

Then you look who else Metalenz work with

“Metalenz is partnering with ST Microelectronics, the $36 billion European supplier to the electronics industry including smartphone manufacturers. Devlin says the company is providing metasurfaces components for a module that ST Microelectronics has previously shipped for about 150 different smartphone models which have historically sold about two billion units.

Which means there’s a lot of room for growth. Including possibly with the giant of the smartphone industry, Apple itself.”

https://www.forbes.com/sites/johnkoetsier/2024/04/30/this-could-kill-the-iphone-notch-bring-cheap-faceid-to-android-and-medical-apps-to-your-camera/

July 24

https://www.sammobile.com/news/apple-iphone-18-samsung-isocell-camera-48mp/

“Apple may have already signed a contract with Samsung for the new camera sensors. Apparently, Samsung's System LSI business, which develops ISOCELL-branded camera sensors, has created a dedicated team to develop camera sensors that align with Apple's needs.”

Add in Feb 24

https://metalenz.com/metalenz-confirms-samsung-isocell-vizion-image-sensor-as-light-engine-for-polar-id-the-worlds-smallest-most-affordable-and-secure-face-unlock-solution/

“Polar ID is under early evaluation with several leading smartphone OEMs. Additional evaluation kits will be made available in Q2 2024.”

Maybe everyone realised there was a cheap effective alternative …again.

Can’t see that isocell or metalenz use CFQDs maybe wrong.

I think there will be some more fun and games before too long.

Be interesting to see who picked up that 3.1% last week ..if it goes to a single buyer whether they have an existing holding or not it should be disclosable.

I fancy a change of control..i doubt the current board would get support if there was an alternative that had the prospect of getting a return from current levels.