Nanoco Group saw its share price soar over 43% in early morning trading to 34.0 after announcing it had signed a Material Development and Supply Agreement with a large, undisclosed US listed-corporation.
Nanoco is a developer and manufacture of cadmium-free quantum dots and nanomaterials. Under this agreement, Nanoco will scale-up and mass produce novel nano-particles for advanced electronic devices and supply them from its state-of-the-art production facility in Runcorn, UK.
In preparation for the quantity of materials needed for these markets, the partner will fund the capital expenditure required to expand Nanoco's Runcorn facility.
The commercial terms of the agreement include payments for success-based milestones, and commercial supply of materials, both of which should strengthen Nanoco's balance sheet. Based on the current timelines, commercial supply is anticipated to begin early 2019.
Commenting on the signed partnership, Michael Edelman, Chief Executive of Nanoco, said: "This transaction not only exemplifies the potential of our technology, but also the recognition that Nanoco can continue to pursue broad partnerships in diverse markets."