24th Jul 2023 14:13
(Alliance News) - Nanoco Group PLC on Monday said that the High Court of England & Wales has sanctioned its capital reduction.
Earlier in July, 99.8% of shareholders voted for the capital reduction at the company's general meeting.
The quantum dots manufacturer said the High Court sanctioned the cancellation of the amount standing to the credit of the company's share premium reserve and the capital redemption reserve.
In June, Nanoco, fresh from landing a USD150 million settlement in a litigation against Samsung Electronics Co, proposes a capital reduction to create distributable reserves.
Nanoco stands to receive USD75 million from the second tranche of proceeds from its Samsung settlement, it plans to use this tranche to fund the capital reduction. The funds are expected to be received in February 2024.
It plans to return between GBP33 million and GBP40 million, around 10 pence to 12p per share.
It plans to retain GBP20 million of cash to invest in the commercial activities, research & development and debt obligations.
Nanoco in February said it signed USD150 million settlement with Samsung for IP infringement. Nanoco in January had warned that it had not struck as big a knockout blow as it would have liked in the David versus Goliath legal battle.
It said at the time that the settlement with Samsung was expected to be "towards the lower end of the range of expectations".
Nanoco claimed Samsung infringed on its unique synthesis and resin capabilities for quantum dots. Quantum dot technology is used on Samsung quantum light-emitting diode televisions.
Shares in Nanoco were up 1.1% to 18.19 pence each in London on Monday afternoon.
By Sophie Rose, Alliance News reporter
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