Nanoco Says Dow's Plant Construction Triggers Milestone Payment; Stock Climbs

(RTTNews) - Shares of Nanoco Group Plc (NANO.L) plunged around 25 percent in London trading after the manufacturer of cadmium-free quantum dots and other nanomaterials announced Wednesday that it will receive a milestone payment from its global licensing partner Dow Chemical Co. (DOW).

Nanoco noted that Dow is starting construction of the world's first large-scale, cadmium-free quantum dot manufacturing plant in South Korea, reflects customer demand for Nanoco quantum dots. This triggers a milestone payment from Dow to Nanoco.

The plant is capable of supporting the manufacture of millions of cadmium-free quantum dot televisions and other display applications. Preparatory work for construction of the plant, at an existing Dow site in Cheonan, South Korea, is well advanced. The company noted that commercial production of Nanoco quantum dots at the plant is expected to begin in the first half of 2015. The quantum dots will be marketed by Dow under the brand name TREVISTA Quantum Dots. Michael Edelman, Nanoco's Chief Executive Officer, said, "We are delighted that demand for Nanoco's cadmium-free quantum dots is at a point where Dow will begin construction of a large-scale manufacturing plant in South Korea based on our novel manufacturing process. Under Dow's brand name TREVISTA Quantum Dots, Nanoco's technology will offer an outstanding quality of colour reproduction and set the standard for quantum dots globally." In London, Nanoco shares were gaining 30.25 pence or 25.42 percent, and trading at 149.25 pence.