Nanosynth shares slide after new strategy update
Nanosynth Group updated the market on its strategy on Tuesday, reporting that following the divestment of the non-core activities of Gyrometric and Cloudveil and the return of the mask manufacturing equipment to the supplier, it was now focussed on the development of its leading nanomaterials technology around Pharm2Farm.
The AIM-traded firm noted that Mark Duffin was appointed as group chief executive officer in September, reporting that he had already brought new key personnel and resources into the business to strengthen its operations and support finance, sales, marketing, human resources, and quality and management functions.
It said it was considering relocating its operations in 2022 to a new UK facility that could include a “scalable state-of-the-art” production facility for nanomaterials, to ensure it improved its nanoparticle production capacity and capabilities to deliver at scale.
A review of potential sales markets had been carried out, and the exploitation of the company's anti-viral technology remained a “key area of focus”.
In order to reduce the cost of sale, a UK and overseas network of distributors was being established to supply masks and related products which incorporate the advanced patented technology.
The company said it was witnessing heightened levels of interest in the current market following recent international and government guidelines.
At the same time, the board said it was aiming to review and renegotiate existing contracts, including its previously-notified contract with VKE where to-date 45,000 masks had been delivered from the initial 250,000 order, to incorporate into that new international distribution network.
In addition to that, Nanosynth said it was planning to target the HVAC market, and increase marketing and social media activities considerably.
A “thorough assessment” of the company's in-house technology and research and development pipeline, meanwhile, had identified eight market sectors where it could either manufacture products ourselves or work in partnerships where the partners' intellectual property, manufacturing capability, routes to market or other capabilities could be enhanced using Nanosynth’s in-house skills or technology.
In addition to those organic growth initiatives within Pharm2Farm, the group said it was “actively looking” at growing its technology and market presence in the nanotechnology and advanced materials space through complimentary acquisitions.
“I am delighted to report that since joining the company we have made rapid progress developing and beginning to implement our strategy which is designed to establish a firm foundation for the business,” Mark Duffin said.
“The board is committed to generate shareholder value in the short to medium term.
“We will continue to keep stakeholders appraised as we achieve key milestones.”
At 1502 GMT, shares in Nanosynth Group were down 21.59% at 0.59p.