ROMEOVILLE, Ill. - Nanophase Technologies Corporation (OTCQB: NANX), known for its mineral-based health care solutions, has announced the resolution of its ongoing litigation with chemical giant BASF. The two companies have reached a settlement agreement and will amend their existing supply contract, signaling an end to the legal dispute that had been pending in the Superior Court of New Jersey.
The joint stipulation to dismiss the case with prejudice is expected to be filed within the next five business days. This development marks the culmination of negotiations between the two parties, with Nanophase's President and CEO, Jess Jankowski, expressing satisfaction with the outcome.
"We are happy to conclude this litigation on positive terms. BASF has been a good partner to Nanophase over the years, and we expect that partnership to continue to bear fruit in the future," said Jankowski.
The settlement clears the path for Nanophase and its subsidiary, Solésence Beauty Science, to focus on their core businesses without the distraction of legal proceedings. Nanophase anticipates growth in the sale of mineral-based Active Pharmaceutical Ingredients (API) and the Solésence finished products business, now with the benefit of their undivided attention.
Nanophase Technologies, with a portfolio of patented and proprietary technologies, provides engineered materials and fully formulated products for various applications, including beauty and life science categories. Its subsidiary, Solésence, offers patented mineral-based technology for skincare, contributing to the advancement of sun care and pollution protection.
The information for this report is based on a press release statement from Nanophase Technologies Corporation.
InvestingPro Insights
Following the recent settlement with BASF, Nanophase Technologies Corporation (OTCQB: NANX) is poised to refocus its efforts on its core businesses. As the company looks to the future, investors may consider a few key financial metrics and InvestingPro Tips that could influence their assessment of Nanophase's market position and growth potential.
According to InvestingPro data, Nanophase currently holds a market capitalization of $44.3 million. Despite showing a strong return over the last month with a 72.79% increase and a 66.74% increase over the last three months, the company's Price / Book ratio stands at a high 22.18 as of the last twelve months ending Q4 2023. This suggests that the stock is trading at a premium relative to the company's book value.
Moreover, Nanophase has not been profitable over the last twelve months, with an adjusted P/E ratio of -9.61, reflecting challenges in generating net income. Additionally, the company does not pay a dividend, which may be a consideration for income-focused investors.
InvestingPro Tips highlight that while the company has experienced significant price movement in the short term, its long-term financial health and profitability remain areas for investor scrutiny. For those seeking a deeper dive into Nanophase's financials, InvestingPro offers additional tips, which could provide further insights into the company's performance and valuation. Interested investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to a wealth of data and analysis to inform their investment decisions.
As the company moves past its legal challenges and continues to innovate in the mineral-based health care and beauty sectors, keeping an eye on these financial indicators will be crucial for stakeholders and potential investors alike. There are 5 additional InvestingPro Tips available for Nanophase, offering a comprehensive look at the company's financial health and market potential.
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