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Nanoco plunges as Samsung settlement seen at lower end of expectations

9th Jan 2023 11:13

(Alliance News) - Nanoco Group PLC shares dropped on Monday, after it warned that its settlement with Samsung Electronics Co is expected to be "towards the lower end of the range of expectations".

Shares in Nanoco were down 24% to 42.26 pence each in London on Monday morning. Shares in Samsung closed up 2.9% to KRW60,700.00 in Seoul.

Manchester, England-based Nanoco, a quantum dots manufacturer, initially launched a US patent infringement lawsuit against the South Korean-based electronics company in December, alongside lawsuits in Germany and China.

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.

On Friday, a term sheet for a no-fault settlement was agreed between the two parties, with both parties jointly requesting a stay of the trial, scheduled to commence on Friday, to allow the terms of a binding agreement to be finalised. Both parties had 30 days to agree on these terms.

On Monday, Nanoco said: "The settlement process requires further negotiations and continues to operate within the control of the US judicial system, and hence the outcome of the litigation, its settlement, and timing are not wholly within the control of the parties."

As a result, the value and terms of any final agreement are not yet certain.

However, Nanoco warned that the gross settlement value should be expected to be "towards the lower end of the range of expectations" for a successful jury trial outcome.

Also, based on historical precedent, the company expects any final agreement to be a one-off payment, with no forward royalties, for the full and final settlement of all current and future patent litigation between the companies.

Nanoco expects to issue a further update upon completion of the final binding agreement within the next 30 days.

Non-Executive Chair Christopher Richards said: "The board, having taken extensive advice from its advisers in the case, has concluded that the draft settlement offer provides a reasonable and immediate fair value for the litigation. The draft settlement accounts for both the potential downside risks of a jury trial, followed by what would likely be very protracted appeal processes, as well as the considerable adverse impact of further litigation costs and funding, and on the time value of money in a rising interest rate environment."

By Sophie Rose, Alliance News reporter

Comments and questions to [email protected]

Copyright 2023 Alliance News Ltd. All Rights Reserved.

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