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Nanosynth Group shares double in value on back of masks deal with India


Shares in Nanosynth Group (LSE:NNN) have been on a tear over the last week, following interest on its work in the field of protective masks.

Now that the global population is – slowly – getting vaccinated, investors are turning to look for opportunities among companies that have long term solutions to the virus.

Nanosynth Group is better known by its previous moniker of Remote Monitored Systems. We have covered the company previously on The Armchair Trader. and avid readers of our AIM round-up will be aware that it has made regular appearances over the last year.

COVID virus looks like it is here to stay

Investors are becoming aware that COVID is likely here to stay, at least for the next few years. Which smaller companies have the tools and solutions to assist with this? Nanosynth recently announced that it had entered into an agreement with a firm in India for the sale of 250,000 Pro-Larva anti-viral face masks. These makes have been shown to actually be able to kill the virus when it lands on them, making them far more useful for medical professionals.

Nanosynth confirmed Friday that it would be delivering the masks to Vivek Kohlin Enterprises OPC in India within the next few weeks. The masks will be in part distributed to interested parties in India with whom VKE has been in discussions. Nanosynth said it was hopeful that it would be seeing further mask orders coming from India.

Nanosynth shares are picking up speed again

Shares in Nanosynth have been picking up speed since 19 August.

They popped from 0.6p to hit 1.27p at time of writing, effectively doubling in price.

The stock has a long way to go to reach its 52 week peak, however, which was back in November last year.

The shares had been witness to a gradual decline in price since February.

Followers of Remote Monitored Systems will know that the masks have not been big sellers in the UK. But Nanosynth seems to be demonstrating that it has the ability to sell them in big quantities abroad.

Virus under control in India, but challenges remain

India remains in the grip of a major pandemic, although the spread of the case load seems to have been brought under control over the hot summer months in the country. India has now provided at least one dose to half its adult population and reported last week that it was scaling up manufacture of vaccines.

Daily vaccinations surpassed 10m doses on Friday in what has been a major effort by public health agencies.

India was facing a major shortage of PPE equipment going into the pandemic, but has the capacity to now produce huge amounts of vanilla PPE kit domestically. For example, in July 2020 it was reporting that it was manufacturing over 400,000 masks per day, from virtually zero in January 2020.

India still represents a huge market for specialist protective equipment. There are worries among doctors in the country that it will see a third wave of the virus this winter. It will be interesting to see whether Nanosynth is going to aim to simply export its masks to India or whether it will explore local manufacturing deals with its partners.

If it can leverage Indian manufacturing efficiently, then it could potentially radically increase sales in South Asia and even further afield.

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This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

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