24 Aug 2021 07:00
23 August 2021
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside is now considered to be in the public domain.
nanosynth group plc
("nanosynth" or the "Company")
Update on mask machine
The Board of nanosynth is pleased to announce that terms have been agreed with Lemu Group ("Lemu"), the supplier of a mask manufacturing machine to Pharm 2 Farm Limited ("P2F"), the Company's main subsidiary, to return the machine to Lemu.
As previously announced on 5 May 2021, the performance of the machine supplied by Lemu has encountered various problems from the outset and the combined teams from P2F and Lemu have worked together to remedy these issues. Unfortunately, it has not been possible to achieve the original specifications.
Under the terms of the agreement with Lemu, Lemu will repay to P2F €180,000 in two tranches; €90,000 on the return of the machine to Valencia, which will be overseen by Lemu and which is expected to be around the beginning of September 2021, and a further €90,000 on 30 September 2021. The remaining €66,000 of the €246,000 that has been paid to Lemu, will be paid contingently upon a re-sale by Lemu of the machine to a third party, with the intention being that this is achieved by 31 December 2021. Egremont Capital has been appointed to assist with the sale, for which they will receive a commission.
Antony Legge, Executive Chairman, commented; "The decision to return the machine to Lemu reflects the difficulties faced by the team in commissioning a new machine for the innovative P2F masks. In the Board's opinion, the agreement to recover almost 75% of the paid cost of the machine, excluding the €66,000 contingent payment, is a fair deal and we are grateful for all the efforts by Lemu in recent months to try and resolve the issues and their collaborative approach to the negotiations to return the machine. We will continue to supply masks to our customers through sub-contracted manufacturing via Volz Filters UK."
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ENQUIRIES:
nanosynth group plc
Antony Legge (Executive Chairman) +44 77 6355 5919
SP Angel Corporate Finance LLP +44 20 3470 0470
Nominated Adviser and Joint Broker
Stuart Gledhill
Caroline Rowe
Peterhouse Capital Limited +44 20 7469 0930
Joint Broker
Lucy Williams
IFC Advisory Ltd +44 20 3934 6630
Graham Herring
Zach Cohen