Nanosynth Group PLC Update on antiviral mask business (4540N)
June 01 2022 - 2:00AM
UK Regulatory
TIDMNNN
RNS Number : 4540N
Nanosynth Group PLC
01 June 2022
1 June 2022
nanosynth group plc
("nanosynth", the "Company" or the "Group")
Update on antiviral mask business
nanosynth, the AIM quoted company specialising in the synthesis
and application of nanoparticles to create new and improve existing
products, announces that the Company has taken the decision to
evolve its mask strategy to focus on licensing its novel technology
into multiple verticals rather than manufacturing masks
directly.
In conjunction with its partner Volz Holdings v.o.s ("Volz"),
the Company is currently testing the spraying of its technology
used within the masks directly on to the material media strands.
Once this testing is concluded this is intended to allow the
Company to sell the solution direct to media providers globally for
the use on masks and other applications.
During the height of the COVID-19 pandemic in 2020-2021, most of
the world's countries mandated the use of surgical-type masks in an
effort to slow the spread of the disease. Recently, most western
countries have relaxed their mask mandates, including the UK, the
USA, France and Germany. The subsequent material reduction in
demand has resulted in a significant drop in the unit cost of
standard facemasks, with wholesale unit prices dropping to below
GBP0.03. This market shift has also eroded the premium that buyers
are willing to pay for the Company's specialised ant-viral mask
product and potential demand.
As a result of the market changes noted above, it is no longer
considered to be financially viable for the Company to continue
manufacturing masks and existing stock will be written off in
nanosynth's accounts due to the incremental cost of readying
existing stock for commercial sale. The remaining stock of masks
held by the Company will be made available to good causes,
including local hospitals and care homes.
Mark Duffin, Chief Executive of nanosynth, commented: "With the
evolution of the Covid-19 pandemic, the average price and
subsequent need for facial masks, particularly in Western Economies
has diminished. However, our existing work with Volz has identified
significant new areas in which to apply our technology and has
created numerous opportunities in a number of attractive market
segments. We intend to exploit these as we continue to enhance our
capability in the area of nanoparticle formulation and the
production of consistent, accurate nanoparticle size and
morphology."
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.
ENQUIRIES :
nanosynth group plc via IFC Advisory
Mark Duffin (Chief Executive
Officer)
SP Angel Corporate Finance LLP
Nominated Adviser and Broker
Stuart Gledhill
Caroline Rowe +44 20 3470 0470
IFC Advisory Ltd
Graham Herring
Zach Cohen +44 20 3934 6630
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END
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