Nanoco Group PLC (LON: NANO) have updated shareholders that initial sales talks have commenced as it tries to recover from the loss of a major contract this year.
The Manchester based firm has found financial 2019 very tough, with a loss of consumers and experiencing volatile share prices across the year.
Nanoco Group make quantum dots used in vibrant displays, grew its revenue this year as it earned from contracts.
Shares are down about 60% this year after losing a contract in the United States, which accounts for a significant proportion of its revenue.
Nanoco announced in a statement that they had appointed Evercore (NYSE: EVR) as its financial adviser to monitor the formal sale process.
Quantum Dots are semiconductor crystals 10,000 times finer than a human hair. They convert electrical energy into light and can be manipulated to produce precise colours, and are mostly used in televisions.
The company had a market cap of £43.1 million as of Monday’s closing stock price of 15 pence, far from its high of 205 pence in 2005.
“Nanoco remains in active discussions with existing and other potential new customers for our materials and services with a particular focus on the display and infra-red sensing markets. In addition to these potentially lucrative commercial opportunities for continued funding of the company’s operations, the board is also reviewing other sources of funding,” Nanoco said.
“The company’s current resources give reasonable headroom for the sale process and commercial opportunities to come to successful conclusions, with contingency plans in place if needed,” it added
The positivity and optimism stands as Nanoco were talking today about ‘active discussions with existing and other potential new customers’ for its materials and services with a ‘particular focus on the display and infra-red sensing markets,’ the company said.
Nanoco said it currently expected indicative proposals for the company to be submitted in mid-December.
Shares of Nanoco have spiked 7.17% since the announcement and are trading at 16p per share. 5/11/19 14:49BST.