Nanoco Group’s over-subscribed fundraise a fitting close to a very successful H1

Nanoco Quantum Dots

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 the results of the fund raising that took place between 6 and 7 June 2022. The Fundraise was made up of a Placing, Subscription and a Broker Option.

On 6 June 2022, the Company announced that it had raised £2.25m from a Placing and a Subscription for new shares at a price of 37 pence per share. A Broker Option opened at that time on the same terms and this closed at 5:00pm on 7 June 2022. The Company had indicated that the maximum number of shares to be issued would be 5% of the issued share capital immediately prior to the Fundraise (approximately £5.65m in total with a maximum of £3.40m from the Broker Option).

The Broker Option was very significantly over-subscribed. The Company has taken efforts to protect the participation requests from smaller retail investors and many of these will either not be scaled back or only modestly so. The balance of other participation requests have been scaled back after consultation with the Company’s Joint Broker, Turner Pope Investments.

The total amount raised in the Fundraise, after scaling back over-subscriptions, amounts to £5.65m before costs of approximately £0.25m. FY22 year end cash is therefore expected to be between £7.0m and £7.5m. The additional funding from the Broker Option extends the Company’s cash runway into CY25, well beyond the point that the Company expects the organic business to be profitable and cash generative. The significant value inflection point in the Samsung IP litigation trial, now due in September 2022, was already covered by the Placing and Subscription. The cash runway now extends even further and beyond the expected outcome of Samsung’s appeals against the decisions in Nanoco’s favour by the Patent Trial and Appeal Board on the validity of all 47 of Nanoco’s claims in the litigation.

Brian Tenner, Chief Executive Officer of Nanoco Group said:

“We are delighted with the level of support from our existing shareholders and new investors. By consistently delivering on anticipated milestones, we continue steady progress towards our goal of creating a fully-fledged, self-financing organic business. We continue our work in parallel to realise fair value for the Company and its shareholders from the patent litigation against Samsung.

“The Fundraise gives us a very solid platform to achieve both of these goals. While we will maintain our discipline in focusing on near term value creation opportunities and cost management, the Fundraise, combined with the new major work package with our European Customer, provides a much more stable environment for managing the business and retaining our team of highly skilled personnel.

“The strength of demand in the Fundraise is also a very clear message of support for the Company in its IP litigation. As announced on 7 June 2022, Samsung’s attempt to delay the trial for a second time has failed and we welcome the new trial date now set for September 2022, at the earlier end of our expectations. A robust balance sheet in the run up to the trial in Texas significantly strengthens our position opposite Samsung and any efforts to draw out the process through judicial appeals.

“The over-subscribed Fundraise has been a fitting close to a very successful H1 CY22. The next six months should bring two further opportunities for significant steps forward in the organic business and the IP litigation. The Nanoco team are absolutely focused on delivering against both of those and creating value for all of our stakeholders.”

More details of the fund raise

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The total number of new shares to be issued is 15,284,340 new Ordinary Shares at 37.0 pence per Ordinary Share. Applications have been made to the FCA for the 15,284,340 new Ordinary Shares issued pursuant to the Fundraise to be admitted to the premium segment of the Official List and to the London Stock Exchange for the new Ordinary Shares to be admitted to trading on its main market for listed securities. Admission is expected to become effective, and dealings in the new Ordinary Shares are expected to commence, at 8.00 a.m. on 13 June 2022. Following Admission, the new Ordinary Shares will rank pari passu in all respects with the existing Ordinary Shares.

On Admission, the Company’s issued share capital will comprise 322,445,744 Ordinary Shares, of which 12,222 were previously held in treasury and remain so. Each Ordinary Share carries the right to one vote and, therefore, the total number of voting rights in the Company on Admission will be 321,433,522. This figure may be used by Shareholders and other investors as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA’s Disclosure Guidance and Transparency Rules.

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