Nanoco Group plc (LON:NANO), a world leader in the development and manufacture of cadmium-free quantum dots and other specific nanomaterials emanating from its technology platform, has announced its Preliminary Results for the year ended 31 July 2020.
Operational highlights
· New contracts with ST Microelectronics to develop novel materials for infra-red sensing and other customers for display applications
· Business restructured to focus resources and reduce monthly cash costs by 50%
· Commenced legal action against Samsung for the alleged wilful infringement of the Group’s IP
· Secured substantial Litigation Funding Agreement with third party for Samsung lawsuit
· Over-subscribed equity fundraise that facilitated participation from retail investors
Financial highlights
· Cash runway extended to December 2022, providing opportunity to re-build organic value
· Adjusted operating loss reduced despite 46% reduction in revenue
· Cash of £5.2 million at year end with net monthly burn rate reduced to c. £0.3 million
Dr Christopher Richards, Nanoco Groups’s Chairman, commented on the results:
“This has been a year of substantial change for Nanoco. We finished the year with new leadership and a more focused team, poised to win new business in our core target sectors. This new focus was strongly endorsed by our shareholders, who supported the raising of £3.4 million in new equity.
“As we closed the year, a number of small but significant commercial wins were added to our existing agreements with ST Microelectronics (“ST Micro”), including new applications in the sensing and display sectors, to give £1.0 million of contracted revenues for FY21.
“The launch of litigation proceedings against Samsung was an important step to protect our IP. The funding we subsequently achieved for that litigation is both critical to facilitating a successful outcome while also being a strong third party endorsement of the strength of our case.
“We have taken decisive action to reduce our cost base, starting by reducing the cost of the Board, while retaining our key operational capabilities. In combination with the equity fundraise, the actions we have taken have significantly extended the cash runway for the Group to December 2022. This creates significant optionality for shareholders, whether in re-building the organic value of the business or in the Samsung lawsuit.”
