Last checked at 27 Sep 2013 07:00
For immediate release | 27 September 2013 |
NANOCO GROUP PLC
("Nanoco" or the "Company")
Corporate Update
Nanoco Group plc (AIM: NANO), a world leader in the development and manufacture of cadmium-free quantum dots and other nanomaterials, is pleased to announce the following corporate update.
Nanoco has completed the planned expansion of its cadmium-free quantum dot production facility in Runcorn with the installation and commissioning of two further Semi-Tech lines at a planned cost of approximately £1.25 million.
These Semi-Tech lines will be used to fulfil orders for large quantities of sample materials to meet increasing demand for pre-production quantum dots from customers and potential customers across the Company's target markets.
Nanoco also announces that the terms of its global licensing agreement with The Dow Chemical Company ("Dow") have been amended to accelerate the commercialisation of Nanoco's cadmium-free quantum dot technology in the display market.
Under the new terms, Dow continues to hold exclusive worldwide rights for the sale, marketing and manufacture of Nanoco's cadmium-free quantum dots for use in electronic displays.
Changes in the new agreement include the waiving of the requirement for Nanoco to contribute capital to the production plant Dow is preparing to build in Asia. In return, the royalty rate that Nanoco would receive from Dow's sale of quantum dots has been reduced to reflect the changes to the agreement. The adjusted royalties continue to acknowledge the proprietary value of Nanoco's technology. Financial details and other specifics are not being disclosed. The agreement does not include specifics about the anticipated price and volume of quantum dots as these are a function of commercial negotiations with customers.
Dow and Nanoco have committed additional resources to accelerate commercialisation and full production under the licensing agreement is expected to begin in the first half of 2014.
Nanoco continues to make progress in its other core target markets of general lighting and solar energy. Notably, the Company's photovoltaic ink is now achieving an energy conversion efficiency of between 12 per cent and 13 per cent.
Michael Edelman, Nanoco's Chief Executive Officer, commented: "We have been delighted by the progress made by Dow. The amendments to the agreement with Dow better capitalise on our respective strengths and reinforce our collective commitment to commercialise this technology as quickly as possible to meet future market demand.
"We have also continued to make encouraging progress across our business, including a doubling of capacity at Runcorn to meet increasing demand for pre-production samples from display and other customers."
For further information:
Nanoco | + 44 (0) 161 603 7900 |
Michael Edelman, Chief Executive Officer | |
Colin White, Chief Financial Officer | |
Canaccord Genuity - Nomad and Joint Broker | +44 (0) 20 7523 8000 |
Simon Bridges | |
Cameron Duncan | |
Liberum Capital - Joint Broker | +44 (0) 20 3100 2000 |
Simon Atkinson | |
Richard Bootle | |
Buchanan | + 44 (0) 20 7466 5000 |
Mark Court / Fiona Henson / Sophie Cowles |
Notes for editors:
About Nanoco Group plc
Nanoco is a world leader in the development and production of cadmium-free quantum dots for use in multiple applications including LCD displays, lighting and solar cells. In the display market, it has an exclusive manufacturing and marketing licensing agreement with The Dow Chemical Company.
Nanoco was founded in 2001 and is headquartered in Manchester, UK. It has production facilities in Runcorn, UK, and business development offices in the USA, Japan, Korea and Taiwan. Its technology is protected worldwide by a large and growing patent estate.
Nanoco began trading on the AIM market of the London Stock Exchange in May 2009 under the ticker symbol NANO. For further information please visit: www.nanocogroup.com.