AIM-quoted Nanoco, which makes cadmium-free quantum dots used in lighting and solar panels, has raised £15m at 89p a share. Nanoco had net cash of £4m at the end of 2010 and it wants the additional cash to increase capacity to fully commercial levels because of rising demand from new and existing customers.
Nanoco has commissioned new production lines at its new factory in Runcorn. This will enable commercial-scale batches of cadmium-free quantum dots to be produced. The two lines could produce 25kg of cadmium-free quantum dots a year.
Nanoco plans to deliver 1kg of cadmium-free quantum dots to a customer within a few months. Once the delivery is validated this will trigger a $2m milestone payment. A second 1kg delivery could be shipped in mid-2011 on similar terms.
Some of the cash raised from investors will go towards investing in two more production lines that will take capacity to 150kg a year. There are also plans to invest more in R&D and protecting intellectual property.
Broker Matrix expects production to rise to 43kg in 2012 and 125kg in 2013. It expects a selling price of $500/kg with gross margins of 55%. That suggests revenues of $21.5m and a gross margin of $11.8m in 2012.
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