Nanoco Group PLC

Nanoco Doubles capacity

Published on 27/9/2013

Nanoco has completed the planned expansion of its cadmium-free quantum dot production facility in Runcorn with the installation and commissioning of two further Semi-Tech lines at a planned cost of approximately £1.25 million.

These Semi-Tech lines will be used to fulfil orders for large quantities of sample materials to meet the increasing demand for pre-production quantum dots from customers and potential customers across the Company’s target markets.

Nanoco also announces that the terms of its global licensing agreement with The Dow Chemical Company (“Dow”) have been amended to accelerate the commercialisation of Nanoco’s cadmium-free quantum dot technology in the display market.

Under the new terms, Dow continues to hold exclusive worldwide rights for the sale, marketing and manufacture of Nanoco’s cadmium-free quantum dots for use in electronic displays.

Changes in the new agreement include the waiving of the requirement for Nanoco to contribute capital to the production plant Dow is preparing to build in Asia. In return, the royalty rate that Nanoco would receive from Dow’s sale of quantum dots has been reduced to reflect the changes to the agreement. The adjusted royalties continue to acknowledge the proprietary value of Nanoco’s technology. Financial details and other specifics are not being disclosed. The agreement does not include specifics about the anticipated price and volume of quantum dots as these are a function of commercial negotiations with customers.

Dow and Nanoco have committed additional resources to accelerate commercialisation and full production under the licensing agreement is expected to begin in the first half of 2014.

Nanoco continues to make progress in its other core target markets of general lighting and solar energy. Notably, the Company’s photovoltaic ink is now achieving an energy conversion efficiency of between 12 per cent and 13 per cent.

Michael Edelman, Nanoco’s Chief Executive Officer, commented: “We have been delighted by the progress made by Dow. The amendments to the agreement with Dow better capitalise on our respective strengths and reinforce our collective commitment to commercialising this technology as quickly as possible to meet future market demand.

“We have also continued to make encouraging progress across our business, including a doubling of capacity at Runcorn to meet the increasing demand for pre-production samples from the display and other customers.”