Nanoco Group plc (LON:NANO), a world leader in the development and manufacture of cadmium-free quantum dots and other nanomaterials emanating from its technology platform, has announced that it has signed a major work package with its important European electronics customer. This follows on from the previous four work packages for the Customer that were successfully delivered over the last two years.
The Work Package commenced on 1 May 2022 and is for one year. The contract delivers a monthly revenue run rate equivalent to that delivered in H1 FY22 and further underpins our cash runway to H1 CY23. Additionally, the working capital arrangements in the contract support Nanoco establishing a more robust supply chain of raw materials. As a result, the Board now expects to exceed its recently increased revenue expectations for FY22.
Brian Tenner, Nanoco’s CEO, commented:
“This is a very important step for Nanoco. It creates a significantly more stable financial environment for operations and business planning compared to the previous series of short, quarterly, work packages. The addition of new materials to the development pipeline emphasises the long-term nature of our relationship with our customer.
“Furthermore, the support for working capital will enhance our readiness for visibility of potential commercial production orders in the second half of CY22. Any production orders received will be in addition to this work package. We continue our efforts to consolidate our R&D and scale up activities in our Runcorn production facility ahead of final product validation and potential commercial orders.
“While we take nothing for granted with regard to commercial orders, we remain focused on our short to medium term goal of commercialising Nanoco’s nanomaterials with meaningful production volumes, subject to final customer adoption of the technology in end use devices.”
