Cadmium-free quantum dots technology developer Nanoco (NANO:AIM) has signalled its ongoing ambition today as it unveils plans to raise an extra £20 million from investors to fund further R&D. A few things stand out. First, the apparent hefty discount which has dragged the share price more than 12% lower to day to 121.25p.
The new shares at 105p imply a 24% mark down on yesterday's 138.75p close, but timing is important. Bare in mind that in the last week, since interim results on 23 March, the stock had rallied around 40% so it seems not unreasonable for the company to point out the 0.7% premium to the 'average closing share price in the last month.'
It's worth noting that non-executive director Robin Williams has subscribed for just over £9,000 worth of new stock.
But perhaps more important still is the company's ambition, and confidence in its long-term future demonstrated by its planned switch from AIM to main listing, a sign of a maturing growth business emerging from a junior start-up.
'The company believes that the Official List is the most appropriate platform for the continued growth of the group by increasing Nanoco's profile, assisting in the liquidity of the company's shares and providing a greater range of potential investors,' today's statement reads.
With US partner Dow Chemical (DOW:NYSE) close top kick-starting large volume production of quantum dots based on Nanoco's R&D from a new state-of—the-art installation in South Korea within weeks, and the first TVs using the technology to go on sale in the latter part of 2015, the signs are encouraging.
Yes, it's had set-backs, not least seemingly losing out on a potentially significant tie-up with Samsung (005930:KS), one of the world's largest TV manufacturers, to Silicon Valley-based peer Nanosys. Yet we could see a dual-sourcing arrangement potentially develop down the line – watch that space. In the meantime, analysts anticipate revenues going from £1.4 million last year to £4 million to end July, with anything from £12 million to £18 million predicted for 2016, sparking a likely break into the black and maybe providing loyal shareholders with the promised pot of gold.