Nanosynth Group PLC Further Strategic Update (0994R)
04 Julio 2022 - 01:00AM
UK Regulatory
TIDMNNN
RNS Number : 0994R
Nanosynth Group PLC
04 July 2022
4 July 2022
nanosynth group plc
("nanosynth", the "Company" or the "Group")
Further Strategic Update
nanosynth, the AIM quoted company specialising in the synthesis
and application of nanoparticles to create new and improve existing
products, announces a strategic update further to its notification
of 1 June 2022.
The business is now ten months into its turnaround strategy
following the appointment of Mark Duffin as CEO in September 2021,
and whilst the Company understands and appreciates shareholders'
frustration at the speed of progress and irregular newsflow, the
Group would like to emphasise that good momentum is being gained
and updates are being provided to shareholders when appropriate to
do so and in accordance with the Company's regulatory
obligations.
The Company's new management team members are all highly
successful in their respective fields of expertise and are working
well together. They are both committed and motivated to realise the
significant potential value inherent in the Company's technological
development programme and, if successful, the Board remains
confident that this will create substantial shareholder value in
the near term. The Company is continuing to strengthen its team and
expertise as demonstrated by the recent appointments of Peter Gray
and Andrew Stedman to the board.
As announced on 1 June 2022, due to a shift in the market with
regard to mask mandates, a decision was taken not to remain in face
mask production and supply. However, the partnership established
with Volz Holdings v.o.s ("Volz") remains of great value to the
Company and its plan is to take the technology developed with Volz
and use it to spray directly onto the media for masks and many
other products within the HVAC market and beyond.
Whilst the partnership with Volz is still in its early stages,
trials have been run to help both companies develop a standard
retro fit to media production lines for future clients so that
installation and execution become streamlined. The Company has
successfully proven the technology and has had exciting results on
the media tested at Volz to date. A fifth trial production run is
due to take place in the coming weeks and the Board is now
confident to apply for REACH UK registration (UK Registration,
Evaluation, Authorisation and restriction of Chemicals) with the
HSE which will allow the Company to produce up to 60 tonnes of
copper (ii) oxide nano material per year. The Company has already
been granted the ability to produce more copper (ii) oxide nano
material than is forecast to be required for the targeted HVAC
market under a PPORD licence (Production and Process Orientated
Research and Development) and the final environmental fate report
will be created after the forthcoming trial which will allow the
REACH UK registration to be progressed. This will then open the
market for the Company, allowing Volz to apply the technology to
all of its products which is expected to lead to wider industry
adoption of the technology. Expressions of interest are already
coming from the market and an exciting pipeline is being
established.
Also announced on 1 June 2022 was the Company's R&D roadmap
across seven verticals. Each of the projects in the map are based
on a fully considered business case, market analysis and detailed
work schedules. The Company has grouped the required patents into
11 distinct categories and is currently in the process of applying
for them.
As the initial phases of the works schedule are completed, the
Company will seek to enter into long term commercial agreements
with appropriate partners. Discussions are at various stages of
progress with credible market counterparties and the Directors
expect that commercial partnerships, once agreed, will commence
with an R&D partnership, paid for by the partner, to deliver
the project and then move to an exclusive commercial agreement
based on minimum volume requirements. Although the Directors are
confident that these discussions will lead to binding agreements,
there can be no certainty in this regard and further updates will
be announced once agreements are finalised.
During the turnaround of the business a key focus has been to
move P2F from an R&D business established with a university to
a commercial standalone company. The Company has taken the patent
for a one disk nano producing reactor to a 4-disk reactor that
produces the same quality and consistency. The Company is now in
the process of building two full scale production reactors
containing 20 disks . This will provide the potential to be the
largest nano producer in the marketplace. GB Nano Ltd has been
established as a wholly owned subsidiary of the Group and will act
as the vehicle to sell nano ingredients directly to customers. This
is being set up as an e-commerce business and will initially launch
with 40 plus products. The site is currently being developed and
the ingredients produced for future launch.
M&A remains a longer-term strategy for the Company but the
current market climate does not support the Company's aspirations.
Rather than lose time, the board has worked at some length to
identify suitable targets and is looking to establish joint
ventures with a right to buy when the market permits.
Mark Duffin, Chief Executive of nanosynth, commented: " Rapid
progress is being made and we look forward to updating shareholders
as our various initiatives build traction. The team has gone above
and beyond for the business and the current progress is testament
to the strategy and their commitment. I sincerely thank them for
their continued support and effort and would like to also thank our
shareholders for their patience and support as we transform the
business. We look forward to providing further updates as we
progress our strategy."
ENQUIRIES :
nanosynth group plc via IFC Advisory
Mark Duffin (Chief Executive
Officer)
SP Angel Corporate Finance LLP
Nominated Adviser and Broker
Stuart Gledhill +44 20 3470
Caroline Rowe 0470
IFC Advisory Ltd
Graham Herring
Zach Cohen +44 20 3934 6630
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