Foreign Currency Hedge of Litigation Settlement
Nanoco hedges second tranche of litigation settlement proceeds, securing £58.8m receipt in February 2024.
- Litigation proceeds second tranche (before withholding) $75m
- Withholding tax $3.25m
- Net USD receipt to be hedged $71.75m
- GBP amount secured via hedge £58.8m
- Hedge rate GBP1:USD1.22
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Further to the announcement on 3 February 2023, Nanoco Group plc (LSE: NANO), a world leader in the development and manufacture of cadmium-free quantum dots and other specific nanomaterials emanating from its technology platform, is pleased to announce that it has signed an agreement to hedge the second tranche of litigation proceeds due to be received in February 2024. This secures a rate equivalent to the rate on settlement signing date.
The hedge means that Nanoco will receive £58.8m in return for selling $71.75m, which is the net receipt from the second tranche of litigation proceeds ($75m less withholding tax $3.25m). The hedge has no deposit and no margin collateral.
The hedge has a translation rate of GBP1:USD1.22, which is in line with the rate ruling on the day that the litigation settlement was signed.
Brian Tenner, Nanoco's CEO, commented:
"This hedge removes any uncertainty around the net GBP cash flows to Nanoco. Given the volatility around the foreign exchange markets, we felt this was an important step to take when the opportunity arose to secure a rate equivalent to the rate on settlement signing date. This significantly de-risks the return of capital to shareholders, which is expected to take place after the second tranche of proceeds is received by the company."
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.