Shareholders in technology company Nanoco are set to receive a pay out of up to £40m.
The Runcorn-headquartered business is making the move after Samsung agreed to pay $150m as part of a no fault settlement in February.
Nanoco had been suing the South Korean group in Texas after it alleged that its QLED televisions use the company’s technology without permission.
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Nanoco is to retain the remaining funds after litigation costs have been paid.
It added it intents to invest in R&D and commercial activities, a proactive IP licensing programme, payment of debt obligations and to provide working capital through to the self-financing position that is expected to be achieved during 2025.
Nanoco's non-executive chairman Christopher Richards said: "The proposals in relation to a capital reduction and the proposed return to shareholders are consistent with our stated intention to balance the investment needs of Nanoco's growing organic business whilst delivering a material return of capital to shareholders following the Samsung litigation.
"The board considers the resolutions to cancel the company's share premium account and capital redemption reserve to be in the best interests of the company and its shareholders as a whole and the board unanimously recommend that shareholders vote in favour of the resolutions to be proposed at the general meeting."
Since the decision in February, Nanoco has been the subject of two high-profile rows with shareholders.
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