Nanosynth Group PLC Update on mask machine (5293J)
August 24 2021 - 2:00AM
UK Regulatory
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RNS Number : 5293J
Nanosynth Group PLC
24 August 2021
23 August 2021
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has
been incorporated into UK law by the European Union (Withdrawal)
Act 2018. Upon the publication of this announcement via Regulatory
Information Service ('RIS'), this inside is now considered to be in
the public domain.
nanosynth group plc
("nanosynth" or the "Company")
Update on mask machine
The Board of nanosynth is pleased to announce that terms have
been agreed with Lemu Group ("Lemu"), the supplier of a mask
manufacturing machine to Pharm 2 Farm Limited ("P2F"), the
Company's main subsidiary, to return the machine to Lemu.
As previously announced on 5 May 2021, the performance of the
machine supplied by Lemu has encountered various problems from the
outset and the combined teams from P2F and Lemu have worked
together to remedy these issues. Unfortunately, it has not been
possible to achieve the original specifications.
Under the terms of the agreement with Lemu, Lemu will repay to
P2F EUR180,000 in two tranches; EUR90,000 on the return of the
machine to Valencia, which will be overseen by Lemu and which is
expected to be around the beginning of September 2021, and a
further EUR90,000 on 30 September 2021. The remaining EUR66,000 of
the EUR246,000 that has been paid to Lemu, will be paid
contingently upon a re-sale by Lemu of the machine to a third
party, with the intention being that this is achieved by 31
December 2021. Egremont Capital has been appointed to assist with
the sale, for which they will receive a commission.
Antony Legge, Executive Chairman, commented; "The decision to
return the machine to Lemu reflects the difficulties faced by the
team in commissioning a new machine for the innovative P2F masks.
In the Board's opinion, the agreement to recover almost 75% of the
paid cost of the machine, excluding the EUR66,000 contingent
payment, is a fair deal and we are grateful for all the efforts by
Lemu in recent months to try and resolve the issues and their
collaborative approach to the negotiations to return the machine.
We will continue to supply masks to our customers through
sub-contracted manufacturing via Volz Filters UK."
- ENDS -
ENQUIRIES :
nanosynth group plc
Antony Legge (Executive Chairman) +44 77 6355 5919
SP Angel Corporate Finance LLP +44 20 3470 0470
Nominated Adviser and Joint Broker
Stuart Gledhill
Caroline Rowe
Peterhouse Capital Limited +44 20 7469 0930
Joint Broker
Lucy Williams
IFC Advisory Ltd
+44 20 3934 6630
Graham Herring
Zach Cohen
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