REG - Nanosynth Group PLC - Update on antiviral mask business

NanosynthAnnouncement

01/06/2022 07:01

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RNS Number : 4540N  Nanosynth Group PLC  01 June 2022

 

1 June 2022

nanosynth group plc

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

Update on antiviral mask business

nanosynth, the AIM quoted company specialising in the synthesis and
application of nanoparticles to create new and improve existing products,
announces that the Company has taken the decision to evolve its mask strategy
to focus on licensing its novel technology into multiple verticals rather than
manufacturing masks directly.

In conjunction with its partner Volz Holdings v.o.s ("Volz"), the Company is
currently testing the spraying of its technology used within the masks
directly on to the material media strands. Once this testing is concluded this
is intended to allow the Company to sell the solution direct to media
providers globally for the use on masks and other applications.

 

During the height of the COVID-19 pandemic in 2020-2021, most of the world's
countries mandated the use of surgical-type masks in an effort to slow the
spread of the disease. Recently, most western countries have relaxed their
mask mandates, including the UK, the USA, France and Germany. The subsequent
material reduction in demand has resulted in a significant drop in the unit
cost of standard facemasks, with wholesale unit prices dropping to below
£0.03. This market shift has also eroded the premium that buyers are willing
to pay for the Company's specialised ant-viral mask product and potential
demand.

 

As a result of the market changes noted above, it is no longer considered to
be financially viable for the Company to continue manufacturing masks and
existing stock will be written off in nanosynth's accounts due to the
incremental cost of readying existing stock for commercial sale.  The
remaining stock of masks held by the Company will be made available to good
causes, including local hospitals and care homes.

 

Mark Duffin, Chief Executive of nanosynth, commented: "With the evolution of
the Covid-19 pandemic, the average price and subsequent need for facial masks,
particularly in Western Economies has diminished.  However, our existing work
with Volz has identified significant new areas in which to apply our
technology and has created numerous opportunities in a number of attractive
market segments. We intend to exploit these as we continue to enhance our
capability in the area of nanoparticle formulation and the production of
consistent, accurate nanoparticle size and morphology."

 

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 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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