Member Info for Kooba

Ngr whilst getting any sustainable business from the Asian customer who apparently are a big supplier to Sony ( source Tenner) the position of Sony in the Apple supply chain is changing I’m afraid. Guess who!?

https://appleinsider.com/articles/24/07/02/apple-turns-to-samsung-for-new-iphone-16-camera-sensors

I agree that they made some promises to save their skins that have all unfolded whether they got over optimistic and then had to stick to their narrative for too long hoping that something would turn up is another matter…though some rowing back on distribution and timelines was seen shortly after they were supported.I think TH did get them worried and probably they still are as the case in which the senior management are entwined is yet to be heard as Loam cannot get it dismissed. TH was probably too ambitious thinking that shareholders would back a wholesale change of guard and the company put up a very expensive and strident defence to protect their jobs…sorry meant protect shareholder value that was threatened if they weren’t running the company as only they could deliver the huge commercial traction they had been working on with their good friends STM…I see.

I don’t think the cash runway (20 months according to Edison) would take them to any meaningful Asian customer revenues..the Asian customer also in very strong position now..if they do want any commercial arrangement.Nanoco could cut costs back to pre settlement levels but still they had STM and Asian customer then ..but they were only burning £100k a month from memory. There are the small scale independent sales they talk of ..peanuts and the ongoing big display customer …that hasn’t manifested yet as guided previously ..so there could be some mitigating increases in revenue but it would need to be a few £M to make much difference now.

One thing is certain they cant raise any money..there long term institutional backer is exiting what’s left of their holding.

Favour a sale

I’m afraid thats about the size of it.

It’s very much a trying to justify value from a sum of the parts valuation rather than any trading basis. Nanoco guided to a 25% drop in revenue expectation ( already severely pared back in July) from £9.5m ..Edison are going further to £6.8m for current year. The £800k being the only real revenue from the Asian customer. Previously r&d income was £2.5m a year so it appears that STM were by far the larger project.

I think they will announce a strategic review and a formal offer process before the results even..they cant just sit and burn £7m of shareholder funds a year.

I see they are going for only 800k of revenue above the samsung..worse than indicated.

They also say “ European partner (which we believe is STMicro)” ..well it was announced wasn’t it ??

Also they get the wrong number of shares in issue hence market cap.

All good.

Https://www.edisongroup.com/research/european-partnership-not-moving-forward/33930/

Cash £13m end current financial year.

Cash runway 20 months

This is the upbeat narrative now!!

I missed the announcement they had run for the hills.

Post tender where they sold just under 70% of their holding ..maximum. They retained 16.9m shares so they have dumped 11m shares into the market on this news now down to 5.9m …seems a hell of a lot of the volume by one seller…unless they have built a synthetic short and then unwound it ..nothing would surprise. But either way again they are not taking this news well and now are below disclosable.

Obviously as a long term institutional holder they cant see value even here….

If STM are to retain their very strong position in sensors then they will need to keep up with innovation in the field ..the only way i have seen that provides the performance and costs needed to roll SWIR into mass markets is through using CQDs ..a number of parties are working on it and the industry analysis so loved by Nanoco points firmly that way.

I figure STM are not walking away from using CQDs in next gen SWIR sensors but they are walking away from Nanoco so are going to take a different approach maybe sourcing elsewhere ( who knows if they were working with others parties in tandem ?) or by establishing an in house presence to manufacture their own materials ..not very expensive relative and secures supply. Maybe there is a whole new approach away from nano materials but i doubt it.

This whole thing now puts the whip in the Asian company’s hands..we are now totally reliant on them ..what could go wrong??

Thank you NGR 1616..i hadn’t seen their latest comments..but clearly a total waste of time.

Not sure how they might get to 30p ..just hope theres a generous bidder in the wings ..but who ??

As to PR yep more money down the drain by Brian.. really seemed to have no clue as to the perilous position the company was in depending on one customer ..after Apple it really hurts they were so trusting and got it all wrong .

The interview released at the end of June makes painful watching in terms of how over confident and relaxed they were and clearly sensed nothing was wrong with STM relationship.

https://www.edisongroup.com/research/sensing-the-opportunity/33734/

Told “there will be more orders “ apparently was enough for them to spend spend spend.

At the end of the interview with the CFO he confirms the cost base is £7m..and they would need £8/9m of organic revenues to breakeven in 2025…so total revenues of £14m (£6m of Samsung) to get to that point.

The company are now estimating just £1.125m of turnover from the Asian work in current financial year…so that points to the resulting burn rate.

How quickly this has fallen apart is shocking..the naivety of the senior management basing forecasts on none binding word of mouth hopes maybe more so.

“Peel Hunt reckons there is “potential for Nanoco to be used in a reverse takeover”.

Oh well thats how they got listed reversing into another failed company ..rinse and repeat!

https://www.proactiveinvestors.co.uk/companies/news/1055166

T minus 15 years

27 Feb 2009 — A TECHNOLOGY company spun out of Manchester University has been bought in a reverse takeover deal which values the enlarged business at £38.6m.

Talking of parody

It'll just be nice to spend more time looking forward and focused on positive developments,' Tenner tells This is Money.

2/04/2024

There seems zero point in keeping Tenner around ..he cannot command any authority and doesn’t even make comment on company comms anymore..he’s just there taking good money after bad and hiding…as he has been since the first profit warning. Unless he is going to undertake the significant cost reduction necessary immediately ..something he had to do after they got stiffed by Apple there is no reason to be anywhere near the company he has left in such a dire situation after 6 years…only directors and staff have benefitted since he joined the board and a few others ! Wondering whether those that backed the management in the GM on their claims that a change of management might jeopardise the near term significant commercial prospects are ruing that decision.

To get stiffed again in a “surprise” turnaround by the only near term sales prospect after gearing up facilities and costs within. 5 years of almost going belly up last time it happened is truly appalling . In each case they had no contracted order visibility just some upbeat noises that they acted on risking shareholder funds . do it once a once a mistake …do it twice..negligent.

Difficult to see an independent future ..they don’t deserve one anymore.

They need to put the for sale sign up officially…they have already left themselves defenceless to any predatory interest ..it’s just a question of whether they can at least achieve a graceful exit now …difficult to muster much faith they do the right thing and do it well in the interests of shareholders..why start now?

terry saying

“i am surprised you have the nerve.”

someone who has been serially wrong on everything and still tries to defend the ****show this company has become under very poor management making very poor decisions..

it is a parody account surely..if it is bravo very funny ..if not a prime example of some sad trekky living in a fantasy land with zero self awareness.

Wonder if Cavendish will reiterate the 60p target again ..unfortunately shows the worth of these paid for marketing pieces. Not even Edison can possibly spin a positive here anymore ..but im sure having had a detailed and very bullish note out in June and a holding edition in July they will want to get something out ..with no real strategy intact and a senior management in disarray difficult to know who is really running the show now. Seems the Chair is taking a more front role but since they have been around there has been nothing much but disappointment so they are experienced in crisis management at least!

nanoco have spent 20 years and a lot of money speculatively trying to make products that might just find a market and still do not have a commercial customer ..your answer when the company has significantly increased the cost base to cope with demand that has evaporated again is to spend more shareholder funds on speculative r&d with no end customer ..again. some learn from experience some don’t.

the guidance now for current year revenue is £7.125m ..£6m of that is non cash accounting for samsung…so just £1.25m for the r&d work ..so not only are we not getting any gen 1 revenue we are losing over half the r&d revenues that make low gross margins anyway. back of a *** pack they will be burning near £6m maybe more on known revenues now. so a company burning at that rate with no realistic prospect of raising additional finance you think should spend even more of r& d and use star trek as an example to demonstrate your thought process.

you really are living in another world of make believe aren’t you ..and clearly have no idea of what responsibilities directors have….maybe they should all go down to ladbrokes and put it on the horses?

they seem to think changing their id as often as their underwear means they can reinvent their history of posting and claim to be the only one who foresaw the outcome and that it was super…problem is scratch the surface and it’s all rubbish..they made extremely high predictions of likely trial outcome far ahead of any paid for research that proved to be rather optimistic itself…just won’t own the truth same old nw ql ql1 tw and who knows how many other ids .

maybe one of their other names got it right .but all this hindsight ****e is very dull.

Terry

“.... and imagine trying to find new customers with weak finances during a years' long litigation. STM pulling out underlines the wisdom of settling early with Samsung.”

Seems to make no difference STM were not put off by the litigation and finances when they spent years getting Nanoco to do cheap research for them …the fact Nanoco said the better finances gave STM the confidence to sign a 2 year deal in Jan this year does seem to have added up as they cancelled months later.

Nanoco has not commercially cracked anything whether they are in litigation or not or whether they are well financed or not…they just haven’t got any customer ever to commit to buying their product.

Many such as yourself justified taking the dive just so they could move swiftly to demonstrate the true value of the cake…they have now it is worth very little according to the market..and their strategy is in tatters. Battening down the hatches and going for Samsung for a proper settlement for infringing patents giving $10ms products still seems a far better result …and with the benefit of hindsight something some like Terry use all the time even more so not we see the commercial disaster unfolding.

What is moronic…your term Terry.. is to suggest they don’t cut costs and actually increase the cash burn ..”doubling down” on self funded r&d without any certainty of any return on that investment. Maybe you could get the burn to a position where they would need to raise funds ( impossible) in 18 months if you really tried!

It would be reckless and in breach of fiduciary duty not to adjust their cost base to reflect the significant change in circumstances and prospects of the business ..anyone of any sense should know that.

I’m afraid Terry none of your comments and predictions make any sense or are founded in any knowledge of business the stock market or litigation. You are serially wrong wrong wrong.

The position if they had a favourable result in court as I said may or may not have been resolved by now but a large award would have enabled a very decent fund raise..not realising this is a shortfall in anything you write..also you can buy protection against appeal as part of the process. We had an extrenemly strong case we were told ..and we had overcome every and all of the extensive challenges Samsung threw up.

You really know very little Terry and still appear a silly little stooge for a management that has failed consistently to deliver value.