Nanoco Group PLC (LSE:NANO) said it signed a major one-year work package with a key European electronics customer, which will more than double its order book year-on-year.
As a result, revenue for financial year 2022 is now expected to exceed previous expectations, the maker of nanomaterials for use in commercial applications said in a statement.
In addition, revenue in FY23 is forecast to be ahead of expectations for FY22.
Nanoco also announced plans to raise £2.25mln through a placing and subscription of 6.08mln new shares at 10p each.
The new contract, which adds new materials to the group's range, is a "very important step" for Nanoco, said Brian Tenner, Nanoco's CEO.
"It creates a significantly more stable financial environment for operations and business planning compared to the previous series of short, quarterly, work packages. The addition of new materials to the development pipeline emphasises the long-term nature of our relationship with our customer.
"Furthermore, the support for working capital will enhance our readiness for visibility of potential commercial production orders in the second half of CY22. Any production orders received will be in addition to this work package,” he added.
Nanoco said net proceeds of the fundraise will extend its cash runway into calender year 2024 and support its core IP assets and ongoing business operations.
The company said it remains “very confident” in the strength of its litigation case against Samsung and in an outcome “that is transformational for Nanoco's prospects”.
Last month, the US Patent Trial and Appeal Board (PTAB) ruled in favour of Nanoco in all 47 claims in the five patents under review as part of the litigation against Samsung over the alleged wilful infringement of the group's intellectual property.
As expected, Samsung has lodged notices to appeal the outcomes, Nanoco said.
“While the outcome of any appeal by Samsung is by its nature uncertain, the board believes that the PTAB opinions appear to limit both the scope of any appeal and the chances of success,” it added.
It said it will now press for a lifting of the stay in the case in the very near term, which is expected to lead to a rescheduled trial in the fourth quarter of 2022.
"This fundraise will enable Nanoco to plan confidently for the future of the organic business and to position us in the strongest possible way for the next stages of the litigation,” noted Tenner.
Shares were 1.82% higher at 39.20p midmorning.