Nanoco has received the $71.75m second and final tranche of litigation proceeds from Korean electronics giant Samsung after settling a long running legal dispute last year.
The Cheshire tech firm confirmed the receipt in a trading update to the LSE, and also confirmed that, as previously announced, a sum in the range of £33.0-40.0m will be returned to shareholders with the retained proceeds to be invested in commercial opportunities and further expanding R&D.
Elsewhere in the update, Nanoco said that it had:
- Delivered the last of four important strategic milestones set by the Board in 2022.
- In November 2023, Nanoco fulfilled its first ever commercial production orders with the shipment of two different materials for use in infra-red sensing applications. The initial use case is expected to be for a low volume application measured in millions of units, whilst demand is then expected to grow gradually, enabling Nanoco to become self-financing during CY25.
- Previously already delivered the validation of our IP with the US Patent Office; a successful conclusion to the Samsung litigation; and the validation of at least one of its nanomaterials for commercial use.
- On 7 November 2023, the company announced an extended and deeper collaboration with its Asian Chemical Customer for the development of a novel second generation material for use in infra-red sensing. This material will achieve even higher levels of performance, enable new potential applications, and help secure Nanoco’s pipeline of product development for a number of years to come.
- Nanoco are also in advanced discussions for a further development agreement of a new material with its European customer.
- At its Runcorn site, work is well underway to fit out a significant new device facility which will extend the range of services it can offer customers as well as accelerating the development of new materials, financed by the retained funds from the litigation earmarked for investment.
Overall trading remains in line with the Board’s expectations for FY24. The return of capital process remains on track for early 2024.
Revenue and adjusted EBITDA remain in line with the Board’s expectations, the company said.
Brian Tenner, chief executive officer of Nanoco, said: “Nanoco is now a fully funded new technology business that has already gained commercial traction for two of our products. We have strong and validated IP covering a range of applications and the financial wherewithal not just to defend that IP, but also to continue funding our leading edge R&D to create additional valuable IP.
“Our customers’ global reach, proven credibility, and ambitions for this technology, emphasise the opportunities for Nanoco. Alongside the intended return of capital in 2024, the Board is confident that the Group will deliver increases in shareholder value in the medium term.”
Nanoco was awarded $150m from Samsung after settling last year on a no-fault basis for the alleged infringement of the Group’s IP.