RNS out today, SP up 18%.








Oxonica plc - Supply Agreement
RNS Number:7127H
Oxonica plc
16 August 2006


16 August 2006

Oxonica plc
Supply Agreement

Oxonica plc ('Oxonica') a leading international nanomaterials group, today
announces that it has reached agreement with Petrol Ofisi A.S., the leading
national oil company in Turkey with sales of US$8.8 billion in 2005, to supply
its Envirox(TM) fuel borne nanocatalyst, for use in diesel fuel across Petrol
Ofisi's nationwide distribution network. This agreement is the first of its kind
for Envirox(TM) and is in line with Oxonica's strategy of signing commercially
significant deals with major partners to access the volume market.

The agreement provides for an initial supply of Envirox(TM) which will be used
by Petrol Ofisi to evaluate market acceptance of the new enhanced fuel within
its national market and is expected to generate sales for Oxonica worth US$12.7
million this year. Following the marketing evaluation, Oxonica expects to be in
a position to indicate likely levels of ongoing demand in Q1 2007.

Envirox(TM) has been shown in field trials to reduce fuel consumption in diesel
engines with savings of 5 to 10% with commensurate reductions in carbon dioxide
(CO2). Envirox(TM) has also been shown to reduce particulate emissions by up to
15%.

In addition, Oxonica will be announcing on Wednesday 16 August the launch of a
collaboration with Petrol Ofisi and Oxford University to develop new catalysts
for the petrochemical industry.

Kevin Matthews, Chief Executive Officer of Oxonica plc, said:

'This deal is another major milestone for Envirox(TM). The initial order
provides a meaningful increase in Oxonica's revenues for the current year and a
successful nationwide product launch by Petrol Ofisi could lead to a significant
boost to Oxonica's sales and cash flow going forward. We are delivering on the
strategy we set out at the time of the IPO last summer and today's announcement
further demonstrates Oxonica's ability to deliver innovative commercial
solutions to major customers in international markets using its expertise in
nanomaterials.'

In addition to this announcement, the Board is pleased to report that trading
for the first half is in line with current expectations. Oxonica intends to
announce interim results for the half year ended 30 June 2006 on 18 September
2006.

For further information, please contact:

Oxonica plc Tel. 01865 856 700
Kevin Matthews, Chief Executive
Richard Clarke, Finance Director

Smithfield Consultants Tel. 020 7360 4900
Sara Musgrave
George Hudson


Notes to Editors

About Oxonica plc - www.oxonica.com

Oxonica (AIM: OXN.L) is one of the leading international nanomaterials groups
with products already launched into international markets and is listed in
London on the AIM market. It was spun-out from Oxford University in 1999 and
currently employs 56 professional staff. Oxonica's mission is to focus on the
development of innovative commercial solutions for international markets using
its expertise in the design and application of nanomaterials. It owns a
portfolio of demand driven products that offer substantial benefits to the
target markets of energy, healthcare, materials and security.

The Group currently has four operating divisions: Oxonica Energy, Oxonica
Healthcare, Oxonica Materials and Oxonica Security. Oxonica has already
launched products into international markets. Lead products include:

* Envirox(TM) Fuel Borne Nanocatalyst - a nanocatalyst improving fuel economy
and reducing emissions

* Optisol(TM) UV Absorber - a revolutionary photostable UV protection system
designed to optimise the performance of quality sunscreens and anti-premature
aging products

Oxonica is also active in searching for the next generation of products and is
already engaged in developing transformational detection technologies which will
enable a new generation of ultrasensitive multiplex diagnostic tools for the
clinical diagnostic life science and security markets. In addition, the company
is developing other UV absorber technologies into polymer systems and coatings,
based on similar technologies to that used in Optisol(TM).

Envirox is also being targeted at the US market:

(Quote from Final Results, 28Mar2006)
In order to sell Envirox(TM) into the United States for on-highway use, a US EPA
registration is required. Oxonica Energy made its submission regarding Envirox(TM)
to the EPA in April 2005. The EPA responded with a request for further data in
October 2005 and it is anticipated that this additional data will be submitted
to the EPA later this year. The EPA may require further testing before it
potentially approves the product.

Been watching this for a long time --- this is a big money deal. Underlines the potential of the product too.

Previously just worried about slow take up of product if product is proved with this deal the market is very big to say the least

Stock fell on no news or volume thru' June and July looks like will head back to 150p area fairly quickly

I very much like the look of this - Envirox and one of OXN's other products, "Optisol(TM) UV Absorber - a revolutionary photostable UV protection system
designed to optimise the performance of quality sunscreens and
anti-premature aging products"

are between them providing OXN with a small revenue stream already. The potential for international adoption of Envirox and the growing uptake of Optisol-based cosmetics gives hope for the future.

Confidant, thanks for your feedback. Are you certain about the dropping back of the SP? - Envirox looks to me like a product waiting to take the world by storm. Turkish sales for this year are going to be 6.6 million in the trials; if the US (EPA) accepts it, how big could this thing go?

Today the SP is up on T/O of only 65,000 shares approx - I accept that it could go back the other way just as quickly if the selling continues, but I would have thought that the Turkey news is a bit of a breakthrough compared with the skincreams.

Here's a thought: if one diesel supplier in a particular country adopts Envirox, the others will be more or less obliged to follow suit as the Envirox fuel will be more efficient than the rest and will put the other companies at a severe competitive disadvantage.

Stock t'over likely to be higher when all the deals are counted at the end of the day -- mine ones are not there for some reason

Stock looks like it could go to 150p as it has fallen from 150p on no volume and no news -- do not see share price dropping back short term

Agree this seems to be a big break compared to suncreams

But company is burning cash i.e. looks to run out by end of this year --- before this deal that is. If all goes well with this deal the cashflow should not be a problem but whether they need to come to market before then to finance scale-up I'm not sure. Even they come to the market if this news is as good as it seems even in these markets there should be plenty of supporters

Like the fact the company has made an acquisition too

soultraders re your thought

Big problem -- petrol/diesel has never been able to carry a"brand". i.e its all the same to you and me diesel and cleaner diesel etc -- buy the cheapest. The marketing push to get past this as the stuff will cost more per litre.

Others follow suit unlikely i.e +5% fuel efficiency -- price 2% difference ? Hardly going to make me go to a different petrol station but could make me buy the Envirox diesel if I was in the station that sold them both

Hence trial period very important -- might have to take a December break in Turkey to see how the trials are going

Agree the possibility of a cash call, Confidant - that happens pretty frequently with these tiddlers, as you know!

By my reckoning a deal like that just done in Turkey could be worth 20 million over a full year - add a few of those together and OXN could pretty quickly be looking at profits.

Have just banged off a very tiny order right on the closing bell to get a toe in the water - I hope it gets filled today! Am trying to do some more investigating and will give serious thought to adding some more to my holding if I'm pleased with what I find out.

Confidant, I like the comment about brands but don't agree re comparisons of efficiency. The bean-counters generally go wild over a 5% saving (or even a 2% saving if the cost centre is a large component of the business, as it would be in a truck or coach co) and in such a multi-billion dollar business as the fuel industry I don't see one company letting another get away with undercutting it - or providing a more efficient, and therefore cost-saving, product - for long.

Also, given that fuel prices are now compared on the internet by people wishing to get the cheapest possible tankful, I think the pressure on vendors is greater than ever to drive prices - or at least the overall cost of fuel usage, down.

If Envirox is really as good as has been shown in the trials, then I guess the enhanced fuel - or copycat versions if competitors manage to get in on the act - would become the industry standard just as low-sulphur products have. I like the fact that Envirox reduces particle emissions too - could see governments pushing it for the sake of the environment.

Looks exciting Soul, I'll keep reading the thread for any more info you can find - product looks Interesting but I assume their must be some competitors out there ?
Also can the Envirox be adapted to be used with Biodiesl ? as I see Biodiesel being introduced very soon around the world for a considerable discount to normal fuels which could replace the need for Envirox IMO, your thoughts#?

Intersting point, GDP. (EDIT, actually that's a very, very good question). I'm not sure of the economic case for using Biodiesel as against fossil fuel - I have a feeling that in a low-oil-price scenario Biodiesel becomes too expensive and it is government-backed tax breaks and similar initiatives that enable it to succeed.

Is biodiesel on its own more fuel-efficient?

As I understand it, European biodiesel is going to be a blend containing approx 95% fossil diesel and 5% bio - in which case you could still derive an advantage from using the additive. One would have to look into the chemistry of the nanotechnology, as it may be that it confers an advantage even when using pure biodiesel, but I think that the days of the majority of people fuelling their cars on chip fat or rapeseed oil are still some way off.

Further to previous: I am trying to make contact with OXN and will put the question to them unless I find some info that settles the issue beforehand.

I wasn't fast enough - my trade got booted out of the system as the MM couldn't fill the order. Something like 70% of the stock is owned by major shareholders, so I wonder if liquidity may be an issue - almost certainly if they couldn't fill the tiny order I placed!. Still, at least I can sleep on my decision to purchase!

FYI - What is Envirox?

READ IT HERE

Panmure Gordon Price Target 200p

Agree with you point soultraders on truck and coach companies

Stagecoach have been using Envirox on their buses for a year or so. Question is perhaps why the deal was made in Turkey and not with one of the UK retailers -- especially perhaps Tesco who don't produce the stuff so don't have a conflict of interest. If we get to know that and also how the Philipinnes sales are going then it could be even more interesting

Good morning Confidant. Is that price target new today?

Clearly it is - just seen on FT.com:

The news prompted Panmure Gordon, the broker, to forecast that Oxonica would report profits during 2007 and see sales rise to 21.4m by 2008.

Kevin Matthews, chief executive of Oxonica, said the deal would provide a "meaningful increase" in current year revenues.

There is also an interesting little presentation by the UK distributor, Rozone, which provides a range of fuel-related products and services.

CLICK HERE

with RSI at 70, sp is looking quite heavily overbought ...... would not be surprised to see it retracing until RSI comes back to below 50

Depends upon how good the newsflow is going to be.

I just spoke to Kevin Matthews at Oxonica, who very kindly returned the call I made yesterday.

He said (and I summarise) that there have been no problems with Envirox in the US as such, but that the EPA did ask for OXN to carry out more engine testing in the US. The new data were submitted to the EPA in May; the EPA's deliberations typically take 6 months, so that an answer should be forthcoming by the end of the year.

Although no problems are anticipated, nanotechnology is a new area for which regulation still has to be drafted and it is likely that the EPA will require further work to be undertaken regarding the environmental impact of the nanoparticles (as opposed to that engines using the modified fuel, which is the subject of the current application). Mr. Matthews reckons that the whole approval process could take, from here, another 12-18 months.

As far as Envirox's compatibility with other fuels is concerned, it should confer similar benefits. Biodiesel produces more carbon than does fossil diesel, so that in theory the product is even more useful in biodiesel blend. No tests have been done for pure biodiesel; Mr. Matthews pointed out that this is not a large area of concern at present.

Similar products could eventually be developed for petrol; however, due to the higher carbon/soot output of diesel, Envirox is a diesel-specific product.

Finally, I asked about the potential divestment of Envirox should it become a major money-spinner. Mr. Matthews stated that divestment is not a priority, although understandably the company would take offers seriously if the price was right.

Shareholder register tight --- 70%+ held in secure hands. Noticeable Stagecoach Bus Holdings has a 5% - did they get this as part of the deal to take the product ? or because they liked the product so much they bought the company?

Overall this looks v good and the lack of interest and free float just makes it look better. Profitability next year I think is a year ahead of schedules

Important will be progress on trials they say were going on at the Final results stage -- the Sept interims should be interesting

cynic

RSI ??? YOu have to be kidding -- look at the share over anything more than last 5 days. Plus realise there is less than 30% of stock outstanding and the mm's look short. Where's the seller coming from -- no mutual funds here ? All holders long term. Vols on the way down lucky to be 3% of total share cap.
Try and buy them and you'll be lucky to get a quote in 2000

picked up the RSI from the charts on site here ..... not my guesswork!

not doubting the RSI score just the relevance here

well if you can't see the relevance, i am afraid i cannot help you

cynic

what is the use of your 3 day RSI on a stock where the fundamentals have just changed, the mkt cap is small, the free float tiny.

Try a 200 day RSI and what do you get?

All your RSI is saying is the stock has gone up. Wow! If you cannot understand that then I cannot help you

I do ..... but that is not to say that the stock is not overbought ..... mind you, it is also of concern (to me) that the company is so illiquid

True its unbelievable illiquid

But that is good for me if I see no chance of near term disappointment as at now. The update in September crucial to see that other trials are progressing -- 2nd UK bus company coming on board would be big boost -- trials stated last last year from company comment

THe main shareholders look to be very long term and were happy to hold at 170p a few months ago. So with just good news from the company, and apparently no institutions in the share with possible redemption worries, I cannot see where the selling will be coming from - at least until 150p

Sure the stock may take a breather but for all the indicators the news in September can be expected to be good -- so again where are the sellers. There are very few who have short term profits to take -- unless bought in last 3-4 weeks when vols very low. Hence again not clear on use of RSI here or why recent buyers would want to sell just yet

Even if sp just consolidates at this level, I think RPI gradually falls ..... no hurry to buy methinks.

Illiquid? ..... no kidding! ..... NMS is only 500

Another deal plus another big guy wanting a stake !!

But illiquidity might mean we won't see the share price for nanoparticles

Oxonica plc - Interim Results
RNS Number:0648J
Oxonica plc
18 September 2006


18 September 2006

Oxonica plc

Interim results for the six months ended 30 June 2006

Oxonica plc, a leading international nanomaterials group, today announces
interim results for the six months ended 30 June 2006.

Highlights

* Turnover rose 87% to 1.280m (1H05: 0.684m)

* Gross profit increased by 105% to 0.770 (1H05: 0.375m)

* Operating loss was 3.107m (1H05: 1.919m)

* Optisol(TM) was incorporated into Boots Soltan Once and Tesco Finest
suncare product lines

* The acquisition of Nanoplex Technologies Inc. was completed in February,
and the company, now renamed Oxonica Inc. has been fully integrated into
the Group

* Post period end, Oxonica Energy signed a key supply agreement for
Envirox(TM) with Petrol Ofisi A.S., the leading national oil company in
Turkey, which is expected to generate sales worth US$ 12.7 m this year

* In August, Oxonica signed a licence agreement and a research
collaboration agreement with Becton Dickinson in connection with Oxonica's
proprietary Nanoplex(TM) technology for the clinical in-vitro diagnostics
market. At the same time, Becton Dickinson subscribed for new ordinary
shares in Oxonica to a value of US$ 2 million.


Commenting on today's announcement, Dr Kevin Matthews, Chief Executive, said:

'Oxonica is continuing to successfully establish itself as an international
multi-sector business. In the light of the major step forward for Envirox(TM)
with Petrol Ofisi, along with sound progress for Optisol(TM) and the exciting
developments with Becton Dickinson in diagnostics, the Board continues to look
to the future with a high degree of confidence. We remain on track for the full
year.'

Looks encouraging - if they sustain the same level of business in the year 2007 they could reach break-even. Current market cap seems to price this in already, however.

EDIT - it's also noticeable that so far no shares appear to have changed hands today (unless FT.com is having a problem with its data feed).

AFTERNOON, ST

sva up over 300 %

Big one page article in FT yesterday

some buyers in today

??? Must be some news/ write up that I am totally unaware of. Any ideas ?

Posted on the other side:


Gardener1 - 9 Oct'06 - 09:27 - 94 of 95


Positive article in the Mail on Sunday - heading "Oxonica: small but perfectly formed".
"For those willing to take a risk for the long term, Oxonica looks appealing. Like it's technology it is small but it's potential is huge. Buy "

The real money's to be had once that approval comes from the EPA in the States. Could take a while though.

71 mil looks a bit pricy for a company worth 16 mil NAV with its P&L account still showing losses; on the other hand if goldrush fever gets a grip the SP could rocket.

Mind you, that Petrol Ofisi deal should narrow the FY losses significantly.

I'm beginning to wish I had taken the plunge when I first started this thread!

soul

people always say they've missed it......

stock gone far enough IMHO until next oil deal announced but then that could be before the year end if we are lucky.

cannot understand how one of the food retailers have not signed up for this diesel product. They are falling over themselves to be the greenest. Until one does the jury will have to be out on whether co will really be a success. I can see why majors not interested -- BP would effectively sell 5%+ less diesel if they bought this product. Probably only able to up price/litre 1p (my guess). So it might save the environment but it won't save BP profits -- I wonder which the BP management are really more concerned about

You're right Confi, it would be a mistake to say I missed it at this early stage. Today I'm smiling about my success with SOLA - I'm up 36% in less than two months :o)

I'd say give it time re the food retailers. This is a new technology and will need a while to raise its profile.

Good point re the erosion of T/O, profits, etc. However, I seem to remember you made a point some weeks ago about things meeting in the middle price-wise, plus there is always first-mover advantage and the resultant likelihood of a price war to think about. Given that most of petrol stations' profits are made not on the forecourt but in the kiosk anyway, it may not be too much of an issue.

It may also be swings and roundabouts regarding how much fuel the majors actually sell. The additive will help existing resources stretch further, which is good; cheaper fuel on the other hand may encourage consumers to use more, so ironing out and decrease in turnover.

Ultimately I think market forces (and possibly legislation) will dictate that this kind of additive will gain acceptance.

Results look fine here

Key seems to be whether the oil additive is working in Turkey Compnay seems to think decision will be made in next few months

Still interesting but the VC holders must be getting bored

Haven't seen the SP yet, but I don't think the VC's will be getting bored. Boundless patience is a prerequisite. Besides, aren't they all busy trying to buy Boots and Sainsbury's?

By VC's mean't the current big holdes of the co. It's been listed a while, done little and hardly trades --- it might not be giving these guys enough short term.

Key will be the diesel additive -- if it works in Turkey then the institutions will want some of the action --- a placing by a current holder to a range of institutions would be good news. Until then its just us small guys playing

So the fuel additive dsoes not work then?

That's a massive set back for this co. Mkt cap is 50m and the closest part of the blue sky has just been completely clouded over.

With VC's still big holders and likely to be v disappointed put this share alongside ENTL in the bargepole category for some time

That is indeed a bit of a setback, but it should be noted that it is only with high-sulphur diesel that the product does not show a signficant saving. Low-sulphur diesel continues to show mch more substantial savings.

I have no financial involvement with this co but there is an aspect of "trials" that must not be forgotten....when drivers use company vehicles it is not unheard-of for them to do some private mileage, or take the scenic route etc.
However, if a trial is being conducted it is likely the driver will be aware of the additional kit being installed (although they should be blind to the test IMHO)...henceforth they will take the "Approved" route and maybe a more-steady pace since their timing/mileage is being monitored. Thus it would not be difficult to achieve a 10-20% improvement due to these "human-factors".
Naturally the trials will try to eliminate such issues, as well as any delay until the weather improves etc. etc. For these reasons it would be better to use identical vehicles with similar loads to be driven over the same course at the same time...not difficult to achieve if the load can be split between two otherwise similar vehicles. ((only this time you don't let the drivers know which has the "fuel-saving" device fitted and preferable put black tape over the fuel gauges AND then you swap-over the kit to eliminate driver-bias and any risk the vehicles are not the same!))

The trouble is that humans are probably more-variable than the technology, (or gadgets ),- furthermore Drivers will drift off-piste if Management doesn't keep an eagle-eye on their activities - 'tis the nature of the beast.

If the saving is as reported "...about 1%" - then that's NO deal, IMHO - you could better that improvement by increasing the tyre pressure (c 4%) or improve streamlining for motorway speeds (c.5-10%) and fitting a strong spring to the accelerator pedal will have similar effects (c.20%), although the journey time may increase a few %.

I'm really somewhat alarmed by this news, however, it is possible the tests were upset by the operators - one cannot eliminate human influence - especially those you "don't know" - but this may be being kind. Time will tell.

For my money the sp is pretty high (and there is a small debt) - there are other places I can invest with better chances.... where the sp is not-exactly factoring-in potential....like BTG, currently about the same money, yet I get the impression their chances are somewhat better, if not spectacular, at least spread over dozens of "technology" and healthcare arenas....at 20p I would invest, but above even 50p I'd buy Oxford Biomedica - Both [BGC/OXB]are full-list so no "time-risk" for CGT savings...with AIM you have to be certain the company won't dip over 2-years!
Oooo-ey! No, I don't feel that lucky - well not at current prices/news.
so, Watch it rocket....Doh!
Please DYOR, all above IMHO based on what I've read here.
Don't shoot.

Hangon, please read the RNS as if memory serves, the trial took place driving the trucks around the service road of the Turkish Formula One racing track.

This one looks very interesting ST.

Will have to do more research.

SP not doing much but not looked into underlying fundies yet.

GF, IMO this is a slow burner. Could be good if Envirox continues to gain a footing in the treatment of low-sulphur diesel (not to be confused with the problematic high-sulphur diesel!). now might be a good time to buy after the shock earlier in the week, but I would urge caution.

I agree with you Soul Traders...I think now is a good time to buy as over all I think this is a good share. I bought into OXN this morning. There was a great write up about OXN yesterday in SHARES MAG although I think they will be abit embarassed as they said buy at 134p and that 110p is not likely to be seen again!
Still I think yesterdays news was a minor setback and buying oportunity and over all this company has alot going for it.
Di
dyor etc

Lets not get too excited about this company, or overly pessimistic. Remember it hasnt made any money and any purchase of shares will be on the HOPE their products are successful. If they are then it could be a very good buy, but at the moment its a bit of a gamble

Cheers guys.

Im rather optomistic but looking for an entry point.

News below is a setback for OXN...need more trials before commiting to this.


Oxonica plc
28 March 2007

Oxonica plc

Initial Results from ENVIROX(TM) Track Trial in Turkey

Oxonica plc ('Oxonica') a leading international nanomaterials group, today
announces that it has received the initial results from the second data point
(30,000 km) of the ENVIROX(TM) track trial being carried out in Turkey on
Turkish, high-sulphur diesel fuel. The track trial is an extensive trial of 16
trucks that are representative of vehicles operating in the Turkish market. The
vehicles are being driven around the service road of the Formula One track in
Istanbul with fuel usage and mileage recorded and fuel efficiency calculated.


The initial data point of 20,000 km showed positive results of a 1-1.5% fuel
saving, which was in the range of management expectations at that stage of the
trial. The initial trial results from the second data point are currently
inconclusive and it has not been possible to identify whether there has been any
improvement in fuel economy. Further work will be required in order to clarify
the trial results and fully evaluate all aspects of the trial design to
determine whether there are any mitigating factors affecting the trial. Oxonica
continues to review the progress of the trial and subsequent results with Petrol
Ofisi and agree on next steps.


Despite the inconclusive second data point from the trial in Turkey, the Board
believes that there is a large body of evidence to support the view that
ENVIROX(TM) works effectively in a wide-range of operating conditions to reduce
fuel consumption and emissions. Extensive fleet trials in low-sulphur diesel
fuel, which is the predominant form of diesel used throughout Europe, Asia and
the USA have shown fuel savings of 5 - 11%.

Moreover, the Group's other activities in the areas of Healthcare, Security and
Materials continue to make good progress including a key technology development
in Healthcare expected to be announced on April 19th at the AACC Oakridge
Conference in St Louis, a key event for the diagnostics industry, and the
continued adoption of Optisol(TM) UV absorber by the market with it now being
used in 27 formulations, with sales in 9 countries.

Pinched from Greystone's TRAD thread, a tip from Shares Mag:

BUY - OXONICA (OXN:AIM) - 134p (STOP LOSS 107p)

Unlike most high-tech investments Oxonica is fairly low risk, as it has established its
technologies and is half-way to commercialising them, but high reward.


PDYOR - I am passing this on only for information's sake and not as a recommendation.

Actually, that tip looks like bad timing, as I guess it must have been published on the same day (28th March) that OXN announced that Envirox was no good for hi-sulphur diesel, cos the SP was at 134 on the 27th and has since dropped to 115 before recovering to 121 on Friday.

I'm not sure anyone should be paying over 1 for an AIM share, indeed I dislike anything over 25p and certainly over 50p...unless there is something supporting it like Stanley Gibbons, or any number of FTSE 250 where the turnover and profits are known to be so.

What concerns me is that the recent test was done at all. Surely as you are driving down the Turkish M1 you will notice your fuel consumption isn't making it? So why go to the trouble of trials which are reported in Public? A relativly simple trial can be conducted by the Execs...so one has to conclude they did and the advantage is small...so small no-one spotted it wasn't there.
If a technology is to be accepted, then it must work and be obvious it works. Cars fitted with turbos perform better than ones without - fact and you only have to drive round the block to feel the difference. Later-on some trials will sort out the figures but fundamentally you know it's a Go-er.
If this stock was much lower, I feel a lot better cosseted, ie a greater safety-margin. At these prices IMHO (and I'm often wrong) it is too high and I'd put my money into something with a better risk/reward...since I suspect all the value is in the OXN-price. ...These were nearly 1.50, - that's about a quarter of LLOY which pays out 7% dividend.....

From the Times - April 9, 2007

Double blow for UK nanotech company.
James Doran in New York

The future of one of Britains leading nanotechnology companies is in doubt amid a legal battle over one of its key products and the near-collapse of its biggest contract with a national oil and gas company.

Oxonica, a technology company listed on the Alternative Investment Market (AIM), makes Envirox a product designed to boost the efficiency of diesel fuel. Envirox is used in the fleet of buses operated by Stagecoach, the British national bus company, which also owns two million shares in Oxonica. The nanotechnology company is also one of the stable backed by Richard Farleigh, the Australian businessman and star of BBC2s Dragons Den.

It has emerged that Envirox is at the centre of a legal dispute between Oxonica and Neuftec, a company based in the Dominican Republic that claims to have invented the fuel additive. Oxonica has filed a patents suit in Londons High Court to protect itself against the claims. Neuftec has said that it will fight the suit and believes that the British firm is using its technology unlawfully.

Envirox, while just one of Oxonicas growing stable of nanotechnology products, is its most significant revenue driver.

Kevin Matthews, the chief executive of Oxonica, told The Times that the dispute with Neuftec was minor. Intellectual property disputes like this are commonplace in nanotechnology, he said. But he urged Neuftec to come to the negotiating table.

Ronen Hazarika, the founder of Neuftec, said that any settlement would have to be substantial.

To compound the problems with Neuftec, Oxonica also faces losing its biggest Envirox contract a deal worth more than $12 million (6.1 million) from Petrol Ofisi, the Turkish national oil and gas company. Oxonica signed the Ofisi deal last year, which sent annual revenues soaring from 1.2 million to more than 10 million.

Last week Oxonicas shares fell more than 12 per cent on the AIM as it revealed that tests using Envirox in diesel engines in Turkey were disappointing. Oxonica claimed at the time that further tests had to be run, but Mr Matthews told The Times that the future of the Turkish deal looked bleak.

It doesn#t look good, does it? The Co reaction after some delay is to put many staff on notice - you'd expect them to be saying the trials were scuppered because - - - and set a time for new trials, or an improved additive etc.....
Then there is the Patent issue - it may be opportunistic, OR it could be a serious blow - does anyone (here) have a view?
As I suggested earlier, I think this sp is fully valued and it wouldn't surprise me to see a halving, until some resolution is clear and Future progress well in-place.

Hmmm I'm glad I only held OXN for a week...I made 10% profit and soon as it started to drop I bailed out double quick...a good move I think.
Di

Agree Dynamite and well done not to lose the lot! I think these small Aim co's are vastly overpriced - the slightest thing makes them tumble as MM's try to avoid the goey-stuff sticking to them. At 25p I'd be much happier.

When is it coming out of suspension? I believe OXN was a BUY in Shares mag.

It was a buy hylyeo at 134p I believe, it then had bad news come out before Shares was even published and dropped to 110p when I bought it. I glad I got back out equally as quick. The loss of their main deal looks alot more serious than just a trial not being up to scratch.
Di

Falls to 57p
-Now back from suspension but with an RNS that tells it like it is! Cash position enough to keep advisors happy and turnover just sufficient to provide meals for Directors. Oh dear!
This is worse (dare I say) than I could have imagined, but I shouldn't be that surprised - the facts appear to be that the fuel-savings are not spectacular, otherwise the likes of Big Retailers would already be using it......ie an overnight success!.
Looks like a fund-raising will follow, with Retail Investors at the end of the queue (well, not at all, I guess). Who will pitch-in at 25p?
This is like a firesale with the fire still raging! Yikes!
When (er, IF), this is over, then may be the time to look again - but at the earlier prices I would have preferred something like BTG (similar money, with wrecks wrung out)....
OXN at 25p? there is a better chance of some uplift - - - but watch that dilution......it may be that "at 25p" you could be paying the equiv. of 50p (ie at today's share-density)....
Yikes! It just gets worse.

Shares mag was totally wrong in advising a buy at 134p a few weeks ago. Now 50p. What a bummer.

Agreed, and I never understand why publications wait for a share to rise 100% or even 200% - and THEN tell us to buy - I'm like the country bumpkin: - "I don't want to ..read-about Wicked Orgies the townsfolk are having..."
" I want to BE there!"
All publications get it wrong and maybe Shares were swayed by Richard - of "Dragon's Den" who has an investment in OXN I read somewhere.

That is why we have to do our own research and don't always trust the Shares or Investors Chronicles magazine.

MM playing games - as I read it Directors have bought less than 1k-worth of shares at 44p - and the sp rises like it's rocket-propelled....I expect a decline until we read about a Review of Operations, cash position, Contracts/Research still in play, etc. etc.
At todays price the news should already be out...yet I am amazed by the silence.
DYOR

Now OXN is 24.5p...biggest bummer of the year.

Well they couldnt have released better news today. Suggests the market could be huge for OXN's Envirox, Could be a buy again but I wouldn't risk buying over the next few weeks as I dont know whether the jump today has been over the top or is reflecting the quality of the news, re. new 'major' distribution agreements and continuing sucessful trials across Europe.

You still in ST? Just re-read the RNS and this could really be worth getting on-board before there next results, they havent talked any figures yet which the half year's will have to show and they could be sizeable. The value of the co. has just doubled in one morning though so best watch any profit taking that could tear down the sp

120% rise because it saves 5% fuel - doesn't seem like a sure-fire fuel-saver to me....still anyone that bought recently will be very pleased with this jump.

It will take a few more customers ( and maybe a greater economy-improvement IMHO), to get this back to 1.20 . . . which was always fully priced IMHO
LLOY is only 4 after todays 7% rise and the yield is c.9% - so don't pay too much for this. . . .
Directors buying 50k-worth each would help.
I don't hold.
EDIT Feb08-(2009?). Pse note LLOY is now (52p) IMHO close to Bankrupt (odd term), due to a childish behaviour wanting to be bigger than everyone else, - buy buying HBOS before they realised ( but shareholders did!) that HBOS was a timebomb....by comparison OXN at 21p is quite refreshing!

EDIT (12Mch09)- what a difference a Year makes! - LLOY is now in deep trouble abt. 44p...and OXN about 11p-ish.....I wonder if LLOY is the better multi-bagger? Oh dear.
EDIT(30Sept09) - 3.3p mid - - - oh deary me

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