RE: Their technology has many many uses4 Jan 2023 10:21
Thought it would be useful to set out the Q and a sheet from last Q. Why nanonsynth chose a Sharing Agreement with Lanstead?
A: The sharing agreement with Lanstead allows nanosynth to benefit from positive share price performance over the next 24 months and the funding provides support for nanosynth’s activities over that period. We see a number of positive catalysts for nanosynth over the coming months, which we consider could be positive for the share price as these are executed.
Q: Is Lanstead entitled to invest monthly at a fixed discount to the prevailing nanosynth share price from month to month?
A: No. Lanstead will be issued and will immediately pay for the 535,000,000 shares it subscribes for at 0.55p per share. The number of shares issued to Lanstead is fixed and does not change. However, the amount from Lanstead due to the Company under the sharing agreement is adjustable upwards or downwards at each of the 24 monthly settlements that follow. For example; the approximate amount in any particular month will be 10% more than £122,604 if the share price is 10% higher than the 0.7333p benchmark price (“BMP”) or 10% less than £122,604 if the share price is 10% lower than the BMP.
Q: Can Lanstead benefit by the share price being lower than the 0.7333p BMP, rather than going higher than 0.7333p?
A: No. Lanstead makes more money the higher the share price is. Through the sharing agreement Lanstead shares some, but not all, of the upside when the share price appreciates with nanosynth. The sharing agreement is an incentive for nanosynth to perform, thereby benefitting all shareholders including Lanstead.
If the share price over 24 months averages double the BMP (i.e. 1.4666p) then the Company will receive double the initial Lanstead subscription of £2,942,500 (i.e. £5,885,000 instead of £2,942,500 million). If the share price over 24 months averages half the BMP (i.e. 0.3666p) then the Company will ultimately receive half the initial Lanstead subscription (i.e. £1,471,250 instead of £2,942,500).
The projected outcome for nanosynth is contractually clear and the value of Lanstead’s investment is greater if the company’s share price is higher.
It is important to note that Lanstead participates in the majority, but not all of the upside in any future nanosynth share price appreciation. The bottom line is that Lanstead makes more money as the share price rises and does not derive any advantage from a decline in the share price.
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