News: Xeros outlines £7m fundraising proposals
The board at innovative Rotherham company, Xeros Technology, has outlined plans to raise some £7m to support its move to an IP rich and asset light business model.
Based on the Advanced Manufacturing Park (AMP), Xeros is a Leeds University spin-out that has developed a patented system using a unique method of special polymer beads rather than the usual large amounts of fresh water to clean clothes.
The proposal involves raising approximately £5m before fees and expenses by a placing of 505,000,000 new ordinary shares with existing and new institutional investors at an issue price of 1 pence per share. In addition, qualifying shareholders will be given the opportunity to subscribe for up to 199,932,635 new Ordinary Shares through an open offer to raise up to £2m before expenses.
The net proceeds are intended to be used to fund the Group's operations through to the end of 2020 and the directors said they will seek to raise further funds at the end of 2020, if not sooner.
The Xeros strategy sees the licensing of technologies to market incumbents and receiving a proportion of the value created by means of royalties. A number of licenscing deals have recently been announced and the directors believe the group will be generating sufficient cashflows to be break-even by the end of 2021.
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Mark Nichols, CEO of Xeros, said: "Xeros' products help reduce the increasing pressures on the world's supply of water. Testament to this are the development and license agreements we have signed in India and China, the world's two largest water users.
"This funding, provided by both existing and new shareholders, will enable us to complete our full migration to becoming a high-margin royalty business delivering sustainability and cost benefits to our licensees' customers.
"Having completed much of the development and protection of our products, we are now well-positioned to continue the commercialisation of our intellectual property with major OEMs across multiple large-scale markets."
Xeros website
Images: Xeros
Based on the Advanced Manufacturing Park (AMP), Xeros is a Leeds University spin-out that has developed a patented system using a unique method of special polymer beads rather than the usual large amounts of fresh water to clean clothes.
The proposal involves raising approximately £5m before fees and expenses by a placing of 505,000,000 new ordinary shares with existing and new institutional investors at an issue price of 1 pence per share. In addition, qualifying shareholders will be given the opportunity to subscribe for up to 199,932,635 new Ordinary Shares through an open offer to raise up to £2m before expenses.
The net proceeds are intended to be used to fund the Group's operations through to the end of 2020 and the directors said they will seek to raise further funds at the end of 2020, if not sooner.
The Xeros strategy sees the licensing of technologies to market incumbents and receiving a proportion of the value created by means of royalties. A number of licenscing deals have recently been announced and the directors believe the group will be generating sufficient cashflows to be break-even by the end of 2021.
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Mark Nichols, CEO of Xeros, said: "Xeros' products help reduce the increasing pressures on the world's supply of water. Testament to this are the development and license agreements we have signed in India and China, the world's two largest water users.
"This funding, provided by both existing and new shareholders, will enable us to complete our full migration to becoming a high-margin royalty business delivering sustainability and cost benefits to our licensees' customers.
"Having completed much of the development and protection of our products, we are now well-positioned to continue the commercialisation of our intellectual property with major OEMs across multiple large-scale markets."
Xeros website
Images: Xeros
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