TIDMNNN
RNS Number : 9066M
Nanosynth Group PLC
17 January 2023
Nanosynth Group Plc
("Nanosynth", "Group" or the "Company")
Corporate and Commercial Update
nanosynth group plc, the AIM quoted company specialising in the
synthesis and application of nanoparticles to create new and
improve existing products, is pleased to provide the following
corporate and commercial update.
Company Update
2022 was a year of substantial progress for the Group in which
we have successfully transitioned from acquiring a university
spin-out to a business with some excellent, viable commercial
opportunities in fast-growing markets.
The Board is now firmly of the view that the Group has clear
direction and a detailed execution plan.
Supporting our strategy and furthering our ability to deliver
our goals, the Board welcomes the interest and investment from
Lanstead and Oval X as new investors in recent months which have
provided working capital and supported our capital expenditure
needs.
In order to provide us with the laboratory facilities needed to
grow, we have agreed to work with Bio City in Nottingham to develop
the existing space to create dedicated production facilities for
the agritech market, cosmetics market and general technology. This
will provide improved and enlarged wet and dry laboratory
facilities, enabling further R&D, with greater warehousing,
storage and office space. Work on the new facilities is due to
commence during the first quarter of 2023. We are pleased that the
Company will be maintaining its roots in the city where P2F was
founded and where ibuprofen was first discovered.
With the increased opportunities that are now being progressed,
some of which are outlined below, production facilities are
expected to be scaled up to meet future demand and enable dedicated
nano-production. This is intended to be achieved through the
manufacture of nano-material reactors of various size and suitable
for both small and large scale production, allowing for a shift
work pattern and short lead-times. Design and testing of reactors
is currently being finalised and we hope to commission the first of
these new reactors during the first half of the year.
The Board has focused Company efforts towards entering and
establishing itself in seven strategic vertical markets having an
aggregate value of in excess of GBP3.6 billion. Our objective has
been to seek potential market sector leading clients and to
demonstrate to them the potential competitive advantages of
implementing our nanotechnology projects, including the attractive
returns on investment that we consider to be achievable. This
process has enabled us to very quickly identify our most likely
project partners.
Coupled with this, the Board has strengthened the Company's
intellectual property portfolio, beyond the two pre-existing
licenced process patents, filing two new patents in the areas of
"Nanoparticles for the use in anti-pathogenic applications"
(WO2022084685A1) and "Soluble nanoparticles for the use in cosmetic
and sunscreen applications" (GB202118048DO). The Company's research
and development across its seven chosen vertical markets has led to
additional intellectual property being identified which we expect
to file in due course.
Our management team has been significantly strengthened over the
last year, with a new Chief Technical Officer Imad Naasani joining
P2F on 1(st) September 2022. Imad was based in Japan and the USA
and brings extensive Nanotechnology experience to the Group as well
as the proven ability to commercialise the science. Supported by
our dedicated project management experience from the cosmetic
industry, the appointment provides us with a new level of
professionalism. Combined with the increased resources and skills
within the labs outlined above we now believe we are well placed to
deliver the necessary products for the future.
We are also in the process of updating some of our brand names
(in particular P2F which is to be renamed Nanovate) and adding new
brands to the Nanosynth Group.
Commercial update
P2F
-- The joint development project with a household name wellness
company progressed well during the later half of 2022,
and the first of three batches of designed ingredients
are being shipped in January 2023. Production of a second
work package is due to commence imminently. This is an
exciting commercial opportunity with a global company
where legislation is driving the need for change. We recently
obtained UK REACH registration for ZnO for volumes up
to 100 tonnes per year to enable potential future production
for this wellness company.
-- In response to a UK and European Commission decision to
ban therapeutic use of zinc oxide (to reduce diarrhoea
in post weaning piglets) from June 2022, a global branded
animal feed provider has completed national and international
trials with a new Nanovatepiglet feed supplement. The
results of the trials show that the new nano product may
offer a viable alternative to the now banned zinc oxide
to UK and EU farmers. Nanovate is discussing possible
commercial collaboration with this potential partner company
during the first quarter of 2023. Nanovate will also be
seeking to supply feed for a wide range of animals via
key strategic partners and feed manufactures across the
globe.
-- Initial trials with a household international paint company
were completed during the year and have shown initial
success and enabled the Company to create an antipathogenic
paint designed to kill Streptococcus (the cause of scarlet
fever), Methicillin-resistant Staphylococcus aureus (MRSA),
E.coli and Pseudomonas aeruginosa bacteria on contact
and prevents further bacterial growth. The Company's patented
copper nanoparticles were incorporated into a commercial
white emulsion paint to create the antipathogenic paint
- with no observed discolouration or reduced performance
effects of the applied paint. Further work is required
with a suitable partner to commercialise the offering
and the Company is seeking partners outside of China.
-- P2F is in final negotiations with a large farming company
for a project within the agriculture field, where we will
be looking to use our technology to enhance yields and
tackle other factors such as hidden hunger (where the
quality of food people eat does not meet their nutritional
requirements). We expect this project, once the agreement
is finalised, to begin in Q2 2023.
-- The Company is in final negotiations within the seed coating
space and is hoping to begin an R&D project by mid 2023.
-- A global blue chip company is expected to begin to evaluate
our minerals in H1 of 2023 with a view to starting a project
in cosmetics if evaluation is successful.
-- A large domestic plant food and fertiliser manufacturer
is expected to commence trials with our nano minerals
to enhance an existing product line with a view to move
straight to commercialisation.
-- We are continuing to look for companies within the seven
identified key verticals with whom to undertake projects.
P2F product launch
-- During 2022, the Company carried out in-house trials on
various plants to determine how to improve and accelerate
their growth via the use of nano technology. The trials
have shown great results and the Company will be launching
a Nano shot for the hydroponics market in the first quarter
of 2023 called the Atomic Nano. Further Nano Shots are
expected to be released later in the year for plants,
vegetables and fruit. Immediate interest and engagement
of a major fruit and vegetable supplier has been forthcoming
and we expect this to result in a joint development for
bespoke fertilizer products in due course.
GB Nano
-- GB Nano has been established to become our in-house online
ecommerce store and to be the go-to for clients to source
Nano ingredients. Our intention is to list 90 plus products
over the next two years with an initial launch of 12 that
will be fully tested and regulated. A growing list of
metal oxides nanoparticles with functional surface chemistries
is being productised and made off-the-shelf to suit a
wide range of applications including, life science, cosmetics,
healthcare, medical device, electronics, plastic industry,
energy storage, filtration, and numerous other niche applications.
The off-the-shelf store will enable clients who have missed
out on some of the key license projects within Nanovate
to continue to have access to nano ingredients to undertake
their own developments.
-- The store is already attracting interest from major household
named cosmetic and research and development companies.
Virosynth Joint Venture Status
-- Manufacturing
* P2F has formulated nano copper ink and applied it to
polypropylene and polyester media
* 6,000 litres of ink have been produced to meet
initial expected demand as marketing the product
commences
* A faster in line testing process is being developed
to support scale up
-- Registration
* P2F has been granted UK REACH registration for CuO
for volumes up to 100 tonnes per year
-- Client development and testing
* Leaching testing for environmental purposes under BS
EN 12457 has been conducted with positive results -
polypropylene and polyester media are classified as
non-hazardous articles as they contain
* Leachate data of both media suggests they may be
classified as Inert waste or stable non-reactive
hazardous waste (this means the media may be
deposited in landfill but not mixed with
biodegradable landfill cells). Both wastes are
suitable for incineration
* Process improvements have led to OCT imagery that
shows improved CuO ink penetration within the media
compared initial proof of concept.
-- Commercial agreements
* Supply agreements have been prepared to issue to
prospective clients on a nonexclusive basis
-- Product launch
* Nanosynth/Virosynth will exhibit at the Filtech show
in Cologne in February where it will launch our new
product offering to a worldwide market. We will be
presenting the novel technology in a series of
presentations and events and currently 400 plus
organisations are being invited to come and meet us
during the event.
Partnerships
The Company remains committed to establishing partnerships and
distribution outlets globally. We are currently working with:
-- An agent to promote our copper coated technology to be
applied to surgical gloves for the healthcare industry.
-- An agent to promote our nanotechnology within the animal
health, paint, rubber manufacturing and paint industries.
Fast Food Sector Opportunity
Through a long-established relationship, the Company has had the
opportunity to apply its capabilities to solve a fundamental
problem within the fast food industry. Restaurants and fast-food
chains have been seeking a solution to the problem of retaining
heat in food being delivered from a kitchen to the customer, whilst
not degrading the quality of the product. Nanosynth is working
confidentially with a global branded fast-food provider to reduce
the temperature loss over a 20-minute period. To-date trials have
managed to achieve a 13 degree positive saving on existing
solutions, being only one degree short of the targeted goal.
Further trials are underway, and the team remain excited and
positive about the opportunity, albeit it is early days. Once the
target has been reached and verified by the client, Nanosynth will
look to offer the technical solution and ingredients to packaging
manufacturers globally for their clients.
Future outlook and plans
The Board remain positive and excited at the opportunities that
have been developed over the last year, albeit there is still a lot
of hard work to be undertaken to get the Company to profitability.
As such the Board wants to thank all the team for their commitment
and support now and in the future. Market conditions to date have
not leant themselves to explore an M&A strategy for the
business but working with household brand named clients will open
up opportunities for partnerships and more.
Mark Duffin said "2022 was a year of substantial progress and we
are excited by the opportunities that have been developed. The
Board appreciates the frustration of shareholders wanting a
constant news flow of RNS announcements, but the Company can only
update the market collectively at the same time and not answer
individual specific questions from shareholders. The Company's
current transition and development mean newsflow opportunities will
be limited until we have established the Group as the go-to
provider in our various chosen markets. We will however keep
shareholders updated of all material developments in our various
projects during 2023."
MAR Wording
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.
Enquiries:
nanosynth group plc Via IFC
Mark Duffin, CEO
S P Angel Corporate Finance LLP
Stuart Gledhill +44 (0)20 3470
Kasia Brzozowska 0470
IFC Advisory Limited
Graham Herring
Zach Cohen +44 20 (0) 3934 6630
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END
UPDUNSURORUAAUR
(END) Dow Jones Newswires
January 17, 2023 02:00 ET (07:00 GMT)
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