Nanoco Group (LON: NANO) announced on Monday that it has signed a development agreement with a “very significant” Asian chemical company, sending its share price rallying.
The company said the project builds on recently completed feasibility work relating to developing a potential new nano-material for the customer and the continued supply of a previously created material.
Nanoco said it will be suitable for use in electronic devices across several sensing applications if the new nano-material is successfully developed.
The first phase of the project will be completed in the second half of 2021, with the agreement outlining a further two stages that are dependent on the success of phase one. If all goes to plan, the project will run until the end of 2022.
As a result of the deal, Nanoco has increased its revenue expectations for 2021 by 10%, with a similar rise for 2022 if all goes to plan.
Brian Tenner, Nanoco's CEO, commented: “This is an important expansion of our portfolio of products for use in infra-red sensing applications. Nanoco now offers a growing range of materials covering an increasing breadth of operational wavelengths for sensors in a multitude of potential end-user applications.
“Our new customer is a very significant player in electronics supply chains globally. They further diversify our customer base and add additional routes to market with their own extensive customer list. This additional reach into leading global technology companies creates further momentum for Nanoco in commercialising our nano-materials for use in sensing applications.”
Nanoco's share price is currently up 2.29% at 21p, after initially rising over 8% to 22.9p earlier in the session.
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