Zenith Nurseries Contract and UKRI Grant Update
Light Science Technologies Holdings plc
("LSTH", the "Company" or the "Group")
Zenith Nurseries Contract and UKRI Grant Update
· First Gateway of Zenith Contract now complete
· Early commencement of first phase of Gateway 4
· Increased value of UKRI Grant
Light Science Technologies Holdings plc (AIM: LST), the controlled environment agriculture ("CEA") technology and contract electronics manufacturing ("CEM") group, provides an update on progress on its contract with Zenith Nurseries Ltd ("Zenith Nurseries") to develop a cloche lighting and sensor technology system.
The Company is pleased to announce that the project's first milestone, Gateway 1 - to develop the cloche lighting system and demonstrate viability - is now complete, resulting in revenue of £51,000 for the Group.
Reordering of implementation programme
As further detailed in the Company's Admission Document, the project is broken into four gateways which are specified to prototype, develop, and commercialise the offering. Following the success of Gateway 1, the customer has redefined its near-term priorities in response to ongoing energy and import conditions, and to increase focus on the lighting element of the rolling cloche. This will place further emphasis on growing more indoors, mitigating the impact of unpredictable and extreme weather conditions and climate change, with a view to increasing yields and extending the growing season.
Therefore, the project gateways have been re-ordered, bringing the first phase of Gateway 4 forward. This phase is now set to proceed before Gateways 2 and 3, and will see the incorporation of the rolling cloche device within new polytunnels. This phase is expected to commence in the first half of 2023 with potential revenues of c.£1.9 million . The Company is also exploring new potential revenue generating additions to the cloche design in order to make the units more self-sufficient in terms of energy usage, using solar power and batteries.
The overall time scale and potential contract value of £13.84 million remains unchanged.
UKRI Grant Update
The Company will now take full responsibility for the development of the harvesting elements alongside specialist contractors, which means that the value of the UK Research and Innovation ("UKRI") grant receivable by the Group has increased to £621,077, for this project.
As previously announced on 15 February 2022, the grant was awarded by UKRI, the UK's innovation agency, as part of its Farming Initiative Pathway (FIP) consortium for more sustainable and efficient plant growth in the UK agricultural sector.
Simon Deacon, CEO and founder of Light Science Technologies, said : "We are delighted with the progress made on the project and the agility of our relationship with Zenith Nurseries, which has allowed a reordering of workflow to bring forward part of Gateway 4.
"The cloche lighting and sensor technology system is as exciting as it is innovative. With applications across multiple plant varieties, we believe there will be significant demand for this solution as food security becomes progressively more crucial in a changing world.
"Importantly, given the numerous issues associated with climate change, which have and will severely impact growing conditions, our solutions enable growers to produce crops more locally, all year round."
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (as amended).
For further information, please contact:
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Light Science Technologies Holdings plc
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Simon Deacon, Chief Executive Officer Jim Snooks, Chief Financial Officer Andrew Hempsall, Chief Operating Officer |
via Walbrook PR |
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Strand Hanson Limited (Nominated & Financial Adviser)
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Tel: +44 (0) 20 7409 3494 |
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Ritchie Balmer / James Harris / Rob Patrick |
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Turner Pope Investments (TPI) Ltd (Broker) |
Tel: +44 (0) 20 3657 0050 |
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James Pope / Andy Thacker |
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Walbrook PR Ltd (Media & Investor Relations)
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Tel: +44 (0)20 7933 8780 or lst@walbrookpr.com |
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Nick Rome / Paul McManus |
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About Light Science Technologies Holdings plc (www.lightsciencetechnologiesholdings.com)
Light Science Technologies Holdings plc is the holding company of the Group's controlled environment agriculture ("CEA") division, Light Science Technologies Ltd ("Light Science Technologies"), and its contract electronics manufacturing ("CEM") division, UK Circuits and Electronics Solutions Limited ("UK Circuits").
Controlled Environment Agriculture
Light Science Technologies was founded in 2019 and is the Company's grow lights and sensor technology business, providing bespoke recipes and technologies tailored to customers' needs - with key targets including indoor, vertical, glasshouses, polytunnels and medicinal farming markets. The all-in-one CEA solution will include analysing customers' crop growing requirements to provide bespoke, low-energy and sustainable equipment.
Market drivers include food and water shortages in many parts of the world; growing global population; UK and other government policy encouraging sustainable and efficient growth methods; increased scrutiny of the effect of food production on climate change and the continuing transition away from processed foods.
Contract Electronics Manufacturing
UK Circuits is the Company's CEM focussed division, with strong revenue and cash generation. The Group designs, procures, and manufactures high-quality CEM products, specialising in Printed Circuit Boards, which are used in a range of sectors including audio, automotive, electronics, gas detection, lighting, pest control, telecommunications and, more recently, the CEA market.
LED Grow-Lighting Cloche/Rig Cloche
The LED grow-lighting cloche/rig is expected to be the first retrofittable, all-in-one lighting-sensing-automation rig designed for polytunnels and glasshouses, bringing controlled environment technology to, and providing year-round harvests for, the grower. The sensor element of the system will provide increased monitoring and data, which will enable greater efficiency in the use of resources, such as energy, nutrients and water, which will ultimately result in reduced costs and higher yields.
Once development is complete, the cloche system has the potential to generate significant one-off hardware revenues and recurring revenues from growers, lasting up to 25 years through the deployment of data, upgrades, replacements, data analysis and in future AI.
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