Nanoco Takeover Rumours (NANO)

The fall is well overdone. The termination with the European partner will lead to a fall of revenue of 25% to year end July 2025 that's all. Revenues to July 2025 are expected to be £9.5m. The reduction in the number of shares is important for the payment of any dividends and the value of the company were it subject to a takeover. Yes there has been crass incompetence in the past and even that's a gross underestimation but the fall is well overdone given the cash pile and IP prospects. The share price is being manipulated down so the purchase of its own shares are cheaper. The share price will recover when the £3m buyback is complete, new management is announced and an update on the second generation sensing materials with their Asian partner. This is without the announcement of any new contracts.

I can see this as a takeover target now, perhaps on the cheap.

I suppose a positive is they have left themselves completely open to a low ball takeover…they no longer have LOAM and RG to protect them as the very large majority of shares are now in pi hands. Pocket change to one of the major sensor or display companies to secure core IP to support their products and to possibly stymie competitors efforts.With the now increased shares in issue 206m ( see other rns yesterday) the market cap at last nights close is still over £30m with £20m cash left. Whilst the short term lack of commercial traction has hit the share price , the IP is still there , though the time value of some key patents is becoming a pressing factor, there could still be an opportunistic tilt. Maybe taking this company off market might be for the best…as a listed company it has been a drawn out series of disasters for shareholders and still has had only one tiny commercial order in over 20 years in it’s existence.

Company founded 2001 First minuscule commercial order 20232009A TECHNOLOGY company spun out of Manchester University has been bought in a reverse takeover deal which values the enlarged business at £38.6m. 2024 Current market cap £33mThey have raised far more than they have paid back since listing…and have issued many millions of free shares to directors. Is it a long term or short term lack of value creation and alignment i wonder…and how can you blame investors over the past 2 years for this complete lack of value creation? I’m sure some AH will have a go.