Nanoveu (ASX:NVU) signs MoU to form new JV; how are shares reacting?

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Image Source: © Leach | Megapixl.com

Highlights

  • Nanoveu and Alan Scott have signed an MoU for establishing a new firm, Alan Scott Nanoveu India Limited (ASNIL) in India.
  • ASNIL will have a paid capital of US$200,000, and Nanoveu will own 35% of the company.
  • Nanoveu’s expansion in India adds scales and numbers, offering the growth momentum for both NVU and Alan Scott.

Nanoveu Limited (ASX: NVU), a nanotechnology company, has signed a memorandum of understanding (MoU) with Alan Scott Industries Ltd, under which a Joint Venture Company named Alan Scott Nanoveu India Limited (ASNIL) will be established in India. Following the news, shares of Nanoveu were trading with an uptick of over 6% on Thursday.

As per the agreement, ASNIL will have a paid capital of US$200,000 and Nanoveu will own 35% of the new JV company.

Nanoveu leverages nanotechnology to reduce contagious transmissions on high touch points to immersive vision-based entertainment. The company's brands are Nanoshield, EyeFly3D, Customskins, and EyeFyx.

Alan Scott was founded in 1994 as a knitwear company, and it ventured into media and advertising in early 2000. It owns the franchise of Miniso and Xtep in India.

Terms of the agreement

Once the MoU comes into effect, commercial terms will be negotiated and finalised. After that, a definitive agreement is anticipated to be signed, under which ASNIL will purchase Nanoshield products from Nanoveu and sell them in India using Alan Scott's current networks and retail channels outlets. Unless agreed by the parties, the MoU shall terminate on 31 December 2022.

A strong growth momentum

According to Nanoveu Managing Director and CEO Alfred Chong, the expansion in India, which is the world's second-most populous country, would add scale and numbers, and boost NVU and Alan Scott’s growth momentum.

Similarly, Manoj Iyer, CEO & ED of Alan Scott Industries Limited (ASIL), said, "Together, working as one team, ASIL will seek to unlock the full potential of our diverse range of products collaborating with various technologies from Nanoveu to place our clients on the best path for success, whilst adding value to our JV partners, shareholders & employees."

Shares of Nanoveu last traded at AU$0.015 with a market cap of AU$3.33 million.


 


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