Tuesday, June 21, 2022

News: Xeros signs global licensing agreement


Xeros Technology Group plc has signed a licensing agreement for its XFilter filtration technology with a world leading manufacturer of components for the appliance industry.

Based on the Advanced Manufacturing Park (AMP) in Rotherham, Xeros is a Leeds University spin-out that has moved to "IP-rich, capital-light" business model with water saving and filtration technologies with multiple commercial applications.

The AIM-listed firm has signed an agreement with Hanning Elektro-Werke Gmbh & Co.KG. which is based in Germany and makes pumps and motors for some of the world's largest domestic washing machine manufacturers.

Hanning components are incorporated in the washing machines of some of the world's leading brands and the agreement is described as transformational for Xeros. It has the potential to deliver significant revenues from late 2023 onwards.

Under the terms of the 10-year, non-exclusive agreement, Hanning will manufacture and sell filters incorporating Xeros' proprietary XFilter technology. This will enable washing machine manufacturers to provide consumers with the ability to capture and easily and safely dispose of over 90% of microfibres, including microplastics, released during laundry cycles. The filters are built into the washing machine and are designed to last the life of a machine.

Hanning is establishing a production line to meet demand from their customers ahead of new legislation in France requiring the fitting of microfibre filters in all domestic washing machines by 1 January 2025. Similar legislation is in development in the UK. Xeros is already working alongside Hanning on the integration of XFilter within the washing machines of a number of their existing customers.

Under the terms of the agreement Xeros will receive a royalty per filter device sold by Hanning. The royalty amount is commercially sensitive, but Xeros can confirm that the commercial terms of the agreement are in line with the Board's expectations and, as previously communicated, Xeros expects to begin receiving royalty revenues from Hanning in late 2023.

In addition, Xeros continues to make progress under the XFilter development agreement previously announced with a large, Asian-based washing machine OEM and a highly respected testing institute for the textile industry recently accredited Xeros' filtration device with the highest level of performance, capturing over 99% of microplastics.

Klaas de Boer, Chairman of Xeros, said: "The ambition we have been working towards is for Xeros' XFilter technology to establish the de facto standard for legislators and to be the device of choice for all washing machine manufacturers. Our solution is designed to be the most efficient, most reliable, most durable and the easiest to use. This agreement with Hanning is testament to the fact that our solution achieves these objectives. Hanning's customers are now working with us and Hanning for incorporation into their machines.

"Doing so enables them to meet the legislation in France with the expectation that filtration will be mandated across the EU and in the UK.

"Through their adoption of this technology, the washing machine industry will radically reduce the largest source of primary microplastic pollution which is from washing our clothes at home."

The deal is much-needed. Xeros' board said earler in the year that it was actively evaluating several funding options to secure investment as it no longer believed that it was likely to reach month on month EBITDA profitability and cash breakeven in the first quarter of 2023, as previously guided. The Board now expects this to be reached in 2024.

Xeros website

Images: Xeros


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