Nanosynth updated the market on its joint venture with Volz on Thursday, reporting that agreement had been reached for Volz to convert its production line to provide the capability for Nanosynth’s ‘alphaviron’ layer to be included across Volz’s product range.
The AIM-traded firm said the move would be “extremely beneficial” to the joint venture company Virosynthm, as Volz is both an HVAC material provider and an HVAC filter provider.
That meant that, by Volz converting their production line to incorporate the company’s technology as standard, Virosynth would end up with its first client.
It was also expected to save Virosynth “considerable” cash expenditure.
“The cost of converting the Volz production line is considerable,” the Nanosynth board said in its statement.
“It has therefore been agreed that, to save Nanosynth having to inject cash into Virosynth to meet half the cost of this, it will instead provide a warrant over ordinary shares in the company to the shareholders of Volz, namely Rainer Volz and Jonathan Thornton.”
As a result, Nanosynth said it had issued £0.5m of warrants over 50 million shares at an exercise price of 1p each, to be granted equally to Volz and Thornton.
The warrants would be exercisable for three years from the date of grant. and only on completion of the conversion of the product line.
At 1215 GMT, shares in Nanosynth were up 20.52% at 0.93p.
