25th Jun 2019 13:04
(Correcting that Nanoco's Runcorn facility is not for energy-to-waste.)
(Alliance News) - Nanoco Group PLC said Friday that an unnamed US customer will not continue its contract beyond the initial term.
Shares in the quantum dots manufacturer was up 5.7% at 10.00 pence on Tuesday, but have lost 73% of their value since last Wednesday.
The development and supply contract Nanoco has with the US company involved Nanoco undertaking stress testing and process optimization at its manufacturing facility in Runcorn, UK.
The contract was initially signed in February 2018 to upgrade the facility and was extended in January to run from January to December.
The US customer has now said the contract will be terminated once its current term expires at the end of 2019, for "reasons wholly unconnected" to the performance of Nanoco's materials or service delivery.
Nanoco said it is now exploring other uses for its technology with other customers, and is working on other opportunities in different sectors, including display.
At this time, revenue and associated cash flows under contract for the financial year ending July 31, 2020 amounts to GBP4.0 million, Nanoco said.
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