Last checked at 25 Jan 2019 07:00
25 January 2019
NANOCO GROUP PLC
("Nanoco" or the "Group")
Contract extension signed
Nanoco Group plc (LSE: NANO), a world leader in the development and manufacture of cadmium-free quantum dots and other specific nanomaterials emanating from our technology platform, today announces that it has signed a contract extension to deliver additional services and materials to an undisclosed US Company (the 'US Company').
In February 2018, Nanoco announced the signing of a Material Development and Supply Agreement with the US Company. Since then, Nanoco has successfully completed a number of technical milestones as well as substantially completing the expansion of the Runcorn facility. Following on from the progress to date, the US Company has now extended the scope of work required from Nanoco.
The contract extension runs from January 2019 to December 2019. During that period, Nanoco will carry out stress testing and process optimization on the new production facility. The majority of revenue is expected to be earned during the period of the agreement, with limited deferrals, and with no contingent or milestone based payments.
The Group noted in its Preliminary Results announcement, on 16 October 2018, that revenue was expected to double in the financial year ending 31 July 2019. At that time, approximately £3.0m of revenue was noted as being under contract, with further potential agreements under active discussion. Successful delivery of the services under the contract extension noted above will fully underpin those revenue expectations and also add a similar sum to the backlog of future revenue expected in FY20. The contract extension also underpins the Board's current expectations for operating results and cash flows. The Group remains in active discussion on additional potential commercial agreements with a number of parties that could create upside to these expectations.
Michael Edelman, Chief Executive of Nanoco, said:
"We are pleased to announce today's contract extension with our US Customer. This extension is a clear demonstration of Nanoco's unique capabilities and value proposition with respect to designing and producing complex nano-materials.
"We are proud to be innovators in the development of quantum dots and other nano-materials, always improving their quality and performance, with extensive intellectual property and specialist knowledge that gives us a clear competitive lead in this technology. We look forward to further strengthening and deepening the relationship with the US Customer."
This announcement contains inside information as defined in EU Regulation No. 596/2014 and is in accordance with the Group's obligations under Article 17 of that Regulation.
The person responsible for arranging the release of this announcement on behalf of the Group is Brian Tenner, Chief Operating Officer and Chief Financial Officer.
For further information, please contact:
Nanoco Group PLC:
Michael Edelman, CEO +44 (0) 161 603 7900
Brian Tenner, COO & CFO +44 (0) 161 603 7900
Caroline Watson, Investor Relations Manager +44 (0) 7788 897 357
cwatson@nanocotechnologies.com
MHP Communications: +44 (0) 20 3128 8570
Reg Hoare / Giles Robinson / Pete Lambie
nanoco@mhpc.com
Notes for editors:
About Nanoco Group plcNanoco (LSE: NANO) harnesses the power of nano-materials. Nano-materials are materials with dimensions typically in the range 1 - 100 nm. Nano-materials have a range of useful properties, including optical and electronic. Quantum dots are a subclass of nano-material that have size-dependent optical and electronic properties. The Group produces quantum dots. Within the sphere of quantum dots, the Group exploits different characteristics of the quantum dots to target different performance criteria that are attractive to specific markets or end-user applications such as the Display and Electronics markets. One of the interesting properties of quantum dots is photoluminescence: the emission of longer wavelength light upon excitation by light of a shorter wavelength. The colour of light emitted depends on the particle size. Nanoco's CFQD® quantum dots are free of cadmium and other toxic heavy metals, and can be tuned to emit light at different wavelengths across the visible and infrared spectrum, rendering them useful for a wide range of applications including displays, lighting and biological imaging.
Nanoco has non-exclusive manufacturing and marketing licensing agreements in display with The Dow Chemical Company, Merck KGaA of Germany and Wah Hong Industrial Corporation of Taiwan.
Nanoco was founded in 2001 and is headquartered in Manchester, UK, with a US subsidiary, Nanoco Inc., in Concord, MA. Nanoco continues to build out a world-class, patent-protected IP portfolio generated both by its own innovation engine, as well as through acquisition.
Nanoco is listed on the Main Market of the London Stock Exchange and trades under the ticker symbol NANO. For further information please visit: www.nanocogroup.com.