Nanoco shares rocket on US tie-up
SHARES in nanotech firm Nanoco leapt 26% to 139p in early trading after it announced a “transformational” deal with US conglomerate, The Dow Chemical Company.
The Manchester firm makes quantum dots – tiny fluorescent particles of semiconductor material which have the ability to emit light.
They are in demand by the makers of electronic goods because they consume less power than existing systems.
It has agreed to licence the technology to Dow subsidiary, Dow Electronic Materials, which will have the right to make and sell the dots for LCD displays.
The financial details of the deal have not been disclosed but Nanoco will receive royalty payments based on future sales.
Dow plans to build a factory in Asia which will supply electronic display manufacturers. Production is expected to begin in the first half of 2014.
Nanoco’s chief executive Michael Edelman said: “This agreement is transformational for the quantum dot industry and a significant endorsement of Nanoco’s cadmium-free quantum dot technology.
“With Dow’s production expertise and deep customer relationships, display makers can begin to plan their quantum dot production requirements with further confidence.”
Dow’s gloval business director CG Park, said: “We believe that Nanoco’s cadmium-free quantum dots will become a new standard in the display industry owing to their ability to significantly improve the color performance of LCD displays both cost-effectively and by avoiding the use of heavy metals.
“When coupled with Nanoco’s technology, Dow’s deep technical, engineering and industry knowledge in films, LCD, LED, and OLED display segments brings our customers an unmatched portfolio of materials solutions.”
Dave Gorman, a director at Manchester stockbroker Milkstone, said: “We have been keen on Nanoco’s shares for a while and we tipped them to clients at 69p last November. Today’s announcement of a tie-up with the big US company Dow Electronic Materials is excellent news and, as chief executive Michael Edelman says, potentially ‘transformational’ for the fortunes of the company.
“It’s also deserved reward for Nanoco’s commitment to producing quantum dots without the use of heavy metals, which its competitors are still using.”