Nanoco Group plc (LON: NANO), a world leader in the development and manufacture of cadmium-free quantum dots and other specific nanomaterials emanating from our technology platform, has today announced that it has signed a contract extension to deliver additional services and materials to an undisclosed US Company.
In February 2018, Nanoco announced the signing of a Material Development and Supply Agreement with the US Company. Since then, Nanoco has successfully completed a number of technical milestones as well as substantially completing the expansion of the Runcorn facility. Following on from the progress to date, the US Company has now extended the scope of work required from Nanoco.
The contract extension runs from January 2019 to December 2019. During that period, Nanoco will carry out stress testing and process optimization on the new production facility. The majority of revenue is expected to be earned during the period of the agreement, with limited deferrals, and with no contingent or milestone based payments.
The Group noted in its Preliminary Results announcement, on 16 October 2018, that revenue was expected to double in the financial year ending 31 July 2019. At that time, approximately £3.0m of revenue was noted as being under contract, with further potential agreements under active discussion. Successful delivery of the services under the contract extension noted above will fully underpin those revenue expectations and also add a similar sum to the backlog of future revenue expected in FY20. The contract extension also underpins the Board’s current expectations for operating results and cash flows. The Group remains in active discussion on additional potential commercial agreements with a number of parties that could create upside to these expectations.
Michael Edelman, Chief Executive of Nanoco Group plc, said:
“We are pleased to announce today’s contract extension with our US Customer. This extension is a clear demonstration of Nanoco’s unique capabilities and value proposition with respect to designing and producing complex nano-materials.
“We are proud to be innovators in the development of quantum dots and other nano-materials, always improving their quality and performance, with extensive intellectual property and specialist knowledge that gives us a clear competitive lead in this technology. We look forward to further strengthening and deepening the relationship with the US Customer.”