Manchester-based technology company Nanoco says an unnamed US customer has released it from an obligation to repay £4.25m of capital funding for its new Runcorn production facility.
The facility was completed in December 2018 and is currently undergoing commissioning as part of a current contract due to expire on 31 December 2019.
Because of uncertainty over the use of the facility to manufacture new nanomaterials, the US customer has released Nanoco from its obligation.
In June, Prolific North reported that tech giant Apple had cancelled a multi-million pound contract with Nanoco to produce an advanced image sensor for its new iPhone camera.
Nanoco’s cadmium-free quantum dot technology is typically used to enhance the picture quality of large-format screens like high-definition TVs, but could also be used in iPhones, improving image quality and assisting in the roll-out of advanced augmented reality features.
The lack of contracted production orders on the new Runcorn facility means an accounting impairment charge is likely to be made in Nanoco’s year-end accounts.
Michael Edelman, Chief Executive of Nanoco Group, said: “The waiver of the contract liability and the impairment of the Runcorn plant creates a balanced outcome for Nanoco. While the impairment of the plant reflects the lack of current commercial contracts – the plant remains at our disposal and fully capable of producing high quality nanomaterials for use in a number of electronics applications.
“With the validation of production material nearing completion, the time to market will be significantly reduced when new commercial customers are identified and we continue our efforts in this area to identify new potential opportunities and to provide excellent service to the US customer.”
