(Reuters) - Shares Nanoco Group Plc surged nearly 44 percent on Thursday after the British nanotechnology company signed a supply and development agreement with an undisclosed U.S.-listed company.
Shares in the company were on track on for their best day in more than nine years and were top gainers on all of London Stock Exchange by a distance.
Nanoco, which specialises in quantum dots, said as part of the deal Nanoco would mass produce nano-particles for advanced electronic devices from its UK factory.
As per the deal, commercial supply is anticipated to begin early 2019 and will strengthen its balance sheet, Nanoco, which posted higher loss than revenue for its fiscal year 2017, said.
The U.S.-listed company will also fund the expansion of Nanoco’s UK factory and make milestone payments.
Quantum dots are semiconductor nanocrystals that are 10,000 times finer than a human hair and can convert electrical energy into light and be manipulated to produce precise colours in display.
Nanoco, whose cadmium-free quantum dots are licensed by U.S. chemicals maker DowDupont and Germany’s Merck KGaA, is one of the four biggest makers of the product.
Nanoco shares were up 43.3 percent at 33.90 pence at 0904 GMT.
Reporting by Rahul B in Bengaluru; Editing by Gopakumar Warrier