REG - Light Science Tech. - Zenith Nurseries Contract and UKRI Grant Update

Light Science Technologies HoldingsAnnouncement

16/09/2022 07:01

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RNS Number : 6592Z  Light Science Tech. Holdings PLC  16 September 2022

Light Science Technologies Holdings plc

("LSTH", the "Company" or the "Group")

 

Zenith Nurseries Contract and UKRI Grant Update

·    First Gateway of Zenith Contract now complete

·    Early commencement of first phase of Gateway 4

·    Increased value of UKRI Grant

Light Science Technologies Holdings plc (AIM: LST), the controlled environment
agriculture ("CEA") technology and contract electronics manufacturing ("CEM")
group, provides an update on progress on its contract with Zenith Nurseries
Ltd ("Zenith Nurseries") to develop a cloche lighting and sensor technology
system.

 

The Company is pleased to announce that the project's first milestone, Gateway
1 - to develop the cloche lighting system and demonstrate viability - is now
complete, resulting in revenue of £51,000 for the Group.

 

Reordering of implementation programme

As further detailed in the Company's Admission Document, the project is broken
into four gateways which are specified to prototype, develop, and
commercialise the offering. Following the success of Gateway 1, the customer
has redefined its near-term priorities in response to ongoing energy and
import conditions, and to increase focus on the lighting element of the
rolling cloche. This will place further emphasis on growing more indoors,
mitigating the impact of unpredictable and extreme weather conditions and
climate change, with a view to increasing yields and extending the growing
season.

 

Therefore, the project gateways have been re-ordered, bringing the first phase
of Gateway 4 forward. This phase is now set to proceed before Gateways 2 and
3, and will see the incorporation of the rolling cloche device within new
polytunnels. This phase is expected to commence in the first half of 2023 with
potential revenues of c.£1.9 million. The Company is also exploring new
potential revenue generating additions to the cloche design in order to make
the units more self-sufficient in terms of energy usage, using solar power and
batteries.

 

The overall time scale and potential contract value of £13.84 million remains
unchanged.

 

UKRI Grant Update

The Company will now take full responsibility for the development of the
harvesting elements alongside specialist contractors, which means that the
value of the UK Research and Innovation ("UKRI") grant receivable by the Group
has increased to £621,077, for this project.

 

As previously announced on 15 February 2022, the grant was awarded by UKRI,
the UK's innovation agency, as part of its Farming Initiative Pathway (FIP)
consortium for more sustainable and efficient plant growth in the UK
agricultural sector.

 

Simon Deacon, CEO and founder of Light Science Technologies, said: "We are
delighted with the progress made on the project and the agility of our
relationship with Zenith Nurseries, which has allowed a reordering of workflow
to bring forward part of Gateway 4.

 

"The cloche lighting and sensor technology system is as exciting as it is
innovative. With applications across multiple plant varieties, we believe
there will be significant demand for this solution as food security becomes
progressively more crucial in a changing world.

 

"Importantly, given the numerous issues associated with climate change, which
have and will severely impact growing conditions, our solutions enable growers
to produce crops more locally, all year round."

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK domestic
law by virtue of the European Union (Withdrawal) Act 2018 (as amended).

 

 

For further information, please contact:

 

 Light Science Technologies Holdings plc                    www.lightsciencetechnologiesholdings.com

                                                          (http://www.lightsciencetechnologiesholdings.com)

 Simon Deacon, Chief Executive Officer                      via Walbrook PR

 Jim Snooks, Chief Financial Officer

 Andrew Hempsall, Chief Operating Officer

 Strand Hanson Limited (Nominated & Financial Adviser)      Tel: +44 (0) 20 7409 3494

 Ritchie Balmer / James Harris / Rob Patrick
 Turner Pope Investments (TPI) Ltd (Broker)                 Tel: +44 (0) 20 3657 0050
 James Pope / Andy Thacker

 Walbrook PR Ltd (Media & Investor Relations)               Tel: +44 (0)20 7933 8780 or lst@walbrookpr.com (mailto:lst@walbrookpr.com)

 Nick Rome / Paul McManus

 

About Light Science Technologies Holdings plc
(www.lightsciencetechnologiesholdings.com
(http://www.lightsciencetechnologiesholdings.com) )

 

Light Science Technologies Holdings plc is the holding company of the Group's
controlled environment agriculture ("CEA") division, Light Science
Technologies Ltd ("Light Science Technologies"), and its contract electronics
manufacturing ("CEM") division, UK Circuits and Electronics Solutions Limited
("UK Circuits").

 

Controlled Environment Agriculture

Light Science Technologies was founded in 2019 and is the Company's grow
lights and sensor technology business, providing bespoke recipes and
technologies tailored to customers' needs - with key targets including indoor,
vertical, glasshouses, polytunnels and medicinal farming markets. The
all-in-one CEA solution will include analysing customers' crop growing
requirements to provide bespoke, low-energy and sustainable equipment.

 

Market drivers include food and water shortages in many parts of the world;
growing global population; UK and other government policy encouraging
sustainable and efficient growth methods; increased scrutiny of the effect of
food production on climate change and the continuing transition away from
processed foods.

 

Contract Electronics Manufacturing

UK Circuits is the Company's CEM focussed division, with strong revenue and
cash generation. The Group designs, procures, and manufactures high-quality
CEM products, specialising in Printed Circuit Boards, which are used in a
range of sectors including audio, automotive, electronics, gas detection,
lighting, pest control, telecommunications and, more recently, the CEA market.

 

LED Grow-Lighting Cloche/Rig Cloche

The LED grow-lighting cloche/rig is expected to be the first retrofittable,
all-in-one lighting-sensing-automation rig designed for polytunnels and
glasshouses, bringing controlled environment technology to, and providing
year-round harvests for, the grower. The sensor element of the system will
provide increased monitoring and data, which will enable greater efficiency in
the use of resources, such as energy, nutrients and water, which will
ultimately result in reduced costs and higher yields.

 

Once development is complete, the cloche system has the potential to generate
significant one-off hardware revenues and recurring revenues from growers,
lasting up to 25 years through the deployment of data, upgrades, replacements,
data analysis and in future AI.

 

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