REG - Nanosynth Group PLC - Corporate and Commercial Update

NanosynthAnnouncement

17/01/2023 07:00

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RNS Number : 9066M  Nanosynth Group PLC  17 January 2023

 Nanosynth Group Plc

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

 

Corporate and Commercial Update

 

nanosynth group plc, the AIM quoted company specialising in the synthesis and
application of nanoparticles to create new and improve existing products, is
pleased to provide the following corporate and commercial update.

 

Company Update

 

2022 was a year of substantial progress for the Group in which we have
successfully transitioned from acquiring a university spin-out to a business
with some excellent, viable commercial opportunities in fast-growing markets.

 

The Board is now firmly of the view that the Group has clear direction and a
detailed execution plan.

 

Supporting our strategy and furthering our ability to deliver our goals, the
Board welcomes the interest and investment from Lanstead and Oval X as new
investors in recent months which have provided working capital and supported
our capital expenditure needs.

 

In order to provide us with the laboratory facilities needed to grow, we have
agreed to work with Bio City in Nottingham to develop the existing space to
create dedicated production facilities for the agritech market, cosmetics
market and general technology. This will provide improved and enlarged wet and
dry laboratory facilities, enabling further R&D, with greater warehousing,
storage and office space. Work on the new facilities is due to commence during
the first quarter of 2023. We are pleased  that the Company will be
maintaining its roots in the city where P2F was founded and where ibuprofen
was first discovered.

 

With the increased opportunities that are now being progressed, some of which
are outlined below, production facilities are expected to be scaled up to meet
future demand and enable dedicated nano-production. This is intended to be
achieved through the manufacture of nano-material reactors of various size
and  suitable for both small and large scale production, allowing for a shift
work pattern and short lead-times. Design and testing of reactors is currently
being finalised and we hope to commission the first of these new reactors
during the first half of the year.

 

The Board has focused Company efforts towards entering and establishing itself
in seven strategic vertical markets having an aggregate value of in excess of
£3.6 billion. Our objective has been to seek potential market sector leading
clients and to demonstrate to them the potential competitive advantages of
implementing our nanotechnology projects, including the attractive returns on
investment that we consider to be achievable. This process has enabled us to
very quickly identify our most likely project partners.

 

Coupled with this, the Board has strengthened the Company's intellectual
property portfolio, beyond the two pre-existing licenced process patents,
filing two new patents in the areas of "Nanoparticles for the use in
anti-pathogenic applications" (WO2022084685A1) and "Soluble nanoparticles for
the use in cosmetic and sunscreen applications" (GB202118048DO). The Company's
research and development across its seven chosen vertical markets has led to
additional intellectual property being identified which we expect to file in
due course.

 

Our management team has been significantly strengthened over the last year,
with a new Chief Technical Officer Imad Naasani joining P2F on 1(st) September
2022. Imad was based in Japan and the USA and brings extensive Nanotechnology
experience to the Group as well as the proven ability to commercialise the
science. Supported by our dedicated project management experience from the
cosmetic industry, the appointment provides us with a new level of
professionalism. Combined with the increased resources and skills within the
labs outlined above we now believe we are well placed to deliver the necessary
products for the future.

 

We are also in the process of updating some of our brand names (in particular
P2F which is to be renamed Nanovate) and adding new brands to the Nanosynth
Group.

 

Commercial update

 

P2F

 

 •    The joint development project with a household name wellness company
      progressed well during the later half of 2022, and the first of three batches
      of designed ingredients are being shipped in January 2023. Production of a
      second work package is due to commence imminently. This is an exciting
      commercial opportunity with a global company where legislation is driving the
      need for change. We recently obtained UK REACH registration for ZnO for
      volumes up to 100 tonnes per year to enable potential future production for
      this wellness company.
 •    In response to a UK and European Commission decision to ban therapeutic use of
      zinc oxide (to reduce diarrhoea in post weaning piglets) from June 2022, a
      global branded animal feed provider has completed national and international
      trials with a new Nanovatepiglet feed supplement. The results of the trials
      show that the new nano product may offer a viable alternative to the now
      banned zinc oxide to UK and EU farmers. Nanovate is discussing possible
      commercial collaboration with this potential partner company during the first
      quarter of 2023. Nanovate will also be seeking to supply feed for a wide range
      of animals via key strategic partners and feed manufactures across the globe.
 •    Initial trials with a household international paint company were completed
      during the year and have shown initial success and enabled the Company to
      create an antipathogenic paint designed to kill Streptococcus (the cause of
      scarlet fever), Methicillin-resistant Staphylococcus aureus (MRSA), E.coli and
      Pseudomonas aeruginosa bacteria on contact and prevents further bacterial
      growth. The Company's patented copper nanoparticles were incorporated into a
      commercial white emulsion paint to create the antipathogenic paint - with no
      observed discolouration or reduced performance effects of the applied paint.
      Further work is required with a suitable partner to commercialise the offering
      and the Company is seeking partners outside of China.
 •    P2F is in final negotiations with a large farming company for a project within
      the agriculture field, where we will be looking to use our technology to
      enhance yields and tackle other factors such as hidden hunger (where the
      quality of food people eat does not meet their nutritional requirements). We
      expect this project, once the agreement is finalised, to begin in Q2 2023.
 •    The Company is in final negotiations within the seed coating space and is
      hoping to begin an R&D project by mid 2023.
 •    A global blue chip company is expected to begin to evaluate our minerals in H1
      of 2023 with a view to starting a project in cosmetics if evaluation is
      successful.
 •    A large domestic plant food and fertiliser manufacturer is expected to
      commence trials with our nano minerals to enhance an existing product line
      with a view to move straight to commercialisation.
 •    We are continuing to look for companies within the seven identified key
      verticals with whom to undertake projects.

P2F product launch

 

 •    During 2022, the Company carried out in-house trials on various plants to
      determine how to improve and accelerate their growth via the use of nano
      technology. The trials have shown great results and the Company will be
      launching a Nano shot for the hydroponics market in the first quarter of 2023
      called the Atomic Nano. Further Nano Shots are expected to be released later
      in the year for plants, vegetables and fruit. Immediate interest and
      engagement of a major fruit and vegetable supplier has been forthcoming and we
      expect this to result in a joint development for bespoke fertilizer products
      in due course.

GB Nano

 

 •    GB Nano has been established to become our in-house online ecommerce store and
      to be the go-to for clients to source Nano ingredients. Our intention is to
      list 90 plus products over the next two years with an initial launch of 12
      that will be fully tested and regulated. A growing list of metal oxides
      nanoparticles with functional surface chemistries is being productised and
      made off-the-shelf to suit a wide range of applications including, life
      science, cosmetics, healthcare, medical device, electronics, plastic industry,
      energy storage, filtration, and numerous other niche applications. The
      off-the-shelf store will enable clients who have missed out on some of the key
      license projects within Nanovate to continue to have access to nano
      ingredients to undertake their own developments.
 •    The store is already attracting interest from major household named cosmetic
      and  research and development companies.

Virosynth Joint Venture Status

 

 •    Manufacturing
      -      P2F has formulated nano copper ink and applied it to polypropylene
      and polyester media
      -      6,000 litres of ink have been produced to meet initial expected
      demand as marketing the product commences
      -      A faster in line testing process is being developed to support
      scale up
 •    Registration
      -      P2F has been granted UK REACH registration for CuO for volumes up
      to 100 tonnes per year
 •    Client development and testing
      -      Leaching testing for environmental purposes under BS EN 12457 has
      been conducted with positive results - polypropylene and polyester media are
      classified as non-hazardous articles as they contain <1% of Cu with no
      impact on the media's anti-pathogenic properties.
      -      Leachate data of both media suggests they may be classified as
      Inert waste or stable non-reactive hazardous waste (this means the media may
      be deposited in landfill but not mixed with biodegradable landfill cells).
      Both wastes are suitable for incineration
      -      Process improvements have led to OCT imagery that shows improved
      CuO ink penetration within the media compared initial proof of concept.
 •    Commercial agreements
      -      Supply agreements have been prepared to issue to prospective
      clients on a nonexclusive basis
 •    Product launch
      -      Nanosynth/Virosynth will exhibit at the Filtech show in Cologne in
      February where it will launch our new product offering to a worldwide market.
      We will be presenting the novel technology in a series of presentations and
      events and currently 400 plus organisations are being invited to come and meet
      us during the event.

Partnerships

 

The Company remains committed to establishing partnerships and distribution
outlets globally. We are currently working with:

 •    An agent to promote our copper coated technology to be applied to surgical
      gloves for the healthcare industry.
 •    An agent to promote our nanotechnology within the animal health, paint, rubber
      manufacturing and paint industries.

Fast Food Sector Opportunity

 

Through a long-established relationship, the Company has had the opportunity
to apply its capabilities to solve a fundamental problem within the fast food
industry. Restaurants and fast-food chains have been seeking a solution to the
problem of retaining heat in food being delivered from a kitchen to the
customer, whilst not degrading the quality of the product. Nanosynth is
working confidentially with a global branded fast-food provider to reduce the
temperature loss over a 20-minute period. To-date trials have managed to
achieve a 13 degree positive saving on existing solutions, being only one
degree short of the targeted goal. Further trials are underway, and the team
remain excited and positive about the opportunity, albeit it is early days.
Once the target has been reached and verified by the client, Nanosynth will
look to offer the technical solution and ingredients to packaging
manufacturers globally for their clients.

 

Future outlook and plans

 

The Board remain positive and excited at the opportunities that have been
developed over the last year, albeit there is still a lot of hard work to be
undertaken to get the Company to profitability. As such the Board wants to
thank all the team for their commitment and support now and in the future.
Market conditions to date have not leant themselves to explore an M&A
strategy for the business but working with household brand named clients will
open up opportunities for partnerships and more.

 

Mark Duffin said "2022 was a year of substantial progress and we are excited
by the opportunities that have been developed. The Board appreciates the
frustration of shareholders wanting a constant news flow of RNS announcements,
but the Company can only update the market collectively at the same time and
not answer individual specific questions from shareholders. The Company's
current transition and development mean newsflow opportunities will be limited
until we have established the Group as the go-to provider in our various
chosen markets. We will however keep shareholders updated of all material
developments in our various projects during 2023."

 

MAR Wording

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the
European Union (Withdrawal) Act 2018.  Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this inside is now
considered to be in the public domain.

 

Enquiries:

 

 nanosynth group plc                 Via IFC

 Mark Duffin, CEO

 S P Angel Corporate Finance LLP     +44 (0)20 3470 0470

 Stuart Gledhill

 Kasia Brzozowska

 IFC Advisory Limited                +44 20 (0) 3934 6630

 Graham Herring

 Zach Cohen

 

 

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