Nanoco receives final settlement in $150m Samsung litigation award
Nanoco Group has received the second tranche of litigation proceeds from Samsung after settling last year on a no fault basis for the alleged infringement of the group’s Intellectual Property.
The Runcorn-based group has received a net sum of $71.75m, being $75m less the expected Korean withholding tax, which amounted to $3.25m. The Korean withholding tax is available to offset Nanoco’s future profits in the UK.
The group previously announced the hedging of this tranche of proceeds at a rate of $1.22/£1. The funds will be converted at this rate and generate a sterling receipt of £58.8m. This represents a gain of £2.1m compared with the current exchange rate for USD.
The group is finalising its proposals for the amount and structure of the return of capital which can now go ahead following this receipt of the second tranche of litigation proceeds.
Nanoco expects to update shareholders shortly on the final proposals which will be in line with the previously announced commitment to return between £33m and £40m to shareholders.
The remaining proceeds will be invested in R&D and commercial activities to expand the group’s range of high performing materials, developing new materials with enhanced performance, as well as expanding reach, a proactive IP licensing programme, payment of debt obligations, and to provide working capital through to the self-financing position that is expected during 2025.
Nanoco is a Manchester University spin-out which develops materials used in the manufacture of monitors and TV screens and technologies for medical imaging and the early diagnosis of cancer.
Last year it won a long-running legal battle with electronics giant, Samsung, in which it was awarded $150m. It pledged to use $90m to fund future growth and much of the rest as a return to shareholders.
CEO, Brian Tenner, said: “With receipt of these proceeds we can now finalise our plans for the significant return of capital to shareholders.
“The proceeds will also ensure that our commercial business is properly funded to take advantage of the growing commercial traction and development opportunities for our innovative platform technology.”
