Nanoco encouraged by European MP ban on competitors quantum dots

LONDON (ShareCast) - Nanoco, the maker of fluorescent quantum dots for use in TVs and lighting, has been boosted by a European Parliament ruling to clamp down on quantum dots that contain toxic heavy metals. Members of the European Parliament (MEPs) voted against a proposed exemption on use of heavy metals in quantum dots in electrical equipment in Europe, which, as a developer and manufacturer of quantum dots that are free of cadmium and other hazardous heavy metals, Nanoco welcomed.

A proposal had been made to try and relax the EU directive on the Restriction of Hazardous Substances Directive (RoHS) over the use of toxic substances such as cadmium.

Analyst Arun George at Canaccord Genuity (Other OTC: CCORF - news) , one of Nanoco's two house brokers, told Sharecast/Digital Look: "This is a huge decision for Nanoco".

MEP's rejection of the delegated directive does not ban cadmium containing QDs, he noted, but will trigger a new assessment, with the current exemption remaining valid until revoked.

Nanoco beleive the RoHS exemption will only last through a grace period.

Michael Edelman, Nanoco's Chief Executive Officer, said: "Cadmium-free quantum dots are without question the preferred choice for human and environmental health. Such quantum dots have significant technological benefits and they are available today." George added that while the vote might drive positive sentiment on Nanoco, there was "little change from a business perspective" for Nanoco as major TV makers Samsung and LG (KSE: 003550.KS - news) have already firmly committed to cadmium-free quantum dots.

"However, this decision severely undermines Nanoco's competitors business prospects. Nanosys' customers (Hisense TVs, Changhong TVs, ASUS laptops, Amazon Kindle Fire HDX) and QD Vision's customers (TCL TVs) ability to launch cadmium containing QD products into the EU is put at risk. The only way forward looks like cadmium-free QDs."