REG - Nanosynth Group PLC - Further Strategic Update

NanosynthAnnouncement

04/07/2022 07:01

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RNS Number : 0994R  Nanosynth Group PLC  04 July 2022

 

4 July 2022

nanosynth group plc

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

Further Strategic Update

nanosynth, the AIM quoted company specialising in the synthesis and
application of nanoparticles to create new and improve existing products,
announces a strategic update further to its notification of 1 June 2022.

The business is now ten months into its turnaround strategy following the
appointment of Mark Duffin as CEO in September 2021, and whilst the Company
understands and appreciates shareholders' frustration at the speed of progress
and irregular newsflow, the Group would like to emphasise that good momentum
is being gained and updates are being provided to shareholders when
appropriate to do so and in accordance with the Company's regulatory
obligations.

The Company's new management team members are all highly successful in their
respective fields of expertise and are working well together. They are both
committed and motivated to realise the significant potential value inherent in
the Company's technological development programme and, if successful, the
Board remains confident that this will create substantial shareholder value in
the near term. The Company is continuing to strengthen its team and expertise
as demonstrated by the recent appointments of Peter Gray and Andrew Stedman to
the board.

As announced on 1 June 2022, due to a shift in the market with regard to mask
mandates, a decision was taken not to remain in face mask production and
supply. However, the partnership established with Volz Holdings v.o.s ("Volz")
remains of great value to the Company and its plan is to take the technology
developed with Volz and use it to spray directly onto the media for masks and
many other products within the HVAC market and beyond.

Whilst the partnership with Volz is still in its early stages, trials have
been run to help both companies develop a standard retro fit to media
production lines for future clients so that installation and execution become
streamlined. The Company has successfully proven the technology and has had
exciting results on the media tested at Volz to date. A fifth trial production
run is due to take place in the coming weeks and the Board is now confident to
apply for REACH UK registration (UK Registration, Evaluation, Authorisation
and restriction of Chemicals) with the HSE which will allow the Company to
produce up to 60 tonnes of copper (ii) oxide nano material per year. The
Company has already been granted the ability to produce more copper (ii) oxide
nano material than is forecast to be required for the targeted HVAC market
under a PPORD licence (Production and Process Orientated Research and
Development) and the final environmental fate report will be created after the
forthcoming trial which will allow the REACH UK registration to be progressed.
This will then open the market for the Company, allowing Volz to apply the
technology to all of its products which is expected to lead to wider industry
adoption of the technology. Expressions of interest are already coming from
the market and an exciting pipeline is being established.

Also announced on 1 June 2022 was the Company's R&D roadmap across seven
verticals. Each of the projects in the map are based on a fully considered
business case, market analysis and detailed work schedules. The Company has
grouped the required patents into 11 distinct categories and is currently in
the process of applying for them.

As the initial phases of the works schedule are completed, the Company will
seek to enter into long term commercial agreements with appropriate partners.
Discussions are at various stages of progress with credible market
counterparties and the Directors expect that commercial partnerships, once
agreed, will commence with an R&D partnership, paid for by the partner, to
deliver the project and then move to an exclusive commercial agreement based
on minimum volume requirements. Although the Directors are confident that
these discussions will lead to binding agreements, there can be no certainty
in this regard and further updates will be announced once agreements are
finalised.

During the turnaround of the business a key focus has been to move P2F from an
R&D business established with a university to a commercial standalone
company. The Company has taken the patent for a one disk nano producing
reactor to a 4-disk reactor that produces the same quality and consistency.
The Company is now in the process of building two full scale production
reactors containing 20 disks. This will provide the potential to be the
largest nano producer in the marketplace. GB Nano Ltd has been established as
a wholly owned subsidiary of the Group and will act as the vehicle to sell
nano ingredients directly to customers. This is being set up as an e-commerce
business and will initially launch with 40 plus products. The site is
currently being developed and the ingredients produced for future launch.

M&A remains a longer-term strategy for the Company but the current market
climate does not support the Company's aspirations. Rather than lose time, the
board has worked at some length to identify suitable targets and is looking to
establish joint ventures with a right to buy when the market permits.

Mark Duffin, Chief Executive of nanosynth, commented: "Rapid progress is
being made and we look forward to updating shareholders as our various
initiatives build traction. The team has gone above and beyond for the
business and the current progress is testament to the strategy and their
commitment. I sincerely thank them for their continued support and effort and
would like to also thank our shareholders for their patience and support as we
transform the business. We look forward to providing further updates as we
progress our strategy."

 

 

 

ENQUIRIES :

 nanosynth group plc                        via IFC Advisory

 Mark Duffin (Chief Executive Officer)

 SP Angel Corporate Finance LLP                                                +44 20 3470 0470

 Nominated Adviser and Broker

 Stuart Gledhill

 Caroline Rowe

 IFC Advisory Ltd                                                              +44 20 3934 6630

 Graham Herring

 Zach Cohen

 

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