Thursday, April 18, 2024

News: Xeros to raise up to £5.5m


Xeros Technology Group plc, the Rotherham-based creator of technologies that reduce the impact of clothing on the planet, is in the process of raising £5.5m to provide working capital and enable to execute its high profile contracts.

Based on the Advanced Manufacturing Park (AMP) in Rotherham, Xeros is a Leeds University spin-out that has created a number of technologies, such as the use of polymer beeds in washing and filters to collect microplastics.

Moving to a to an "IP-rich, capital-light" business model with water saving and filtration technologies with multiple commercial applications, making money has proved tricky following around £150m in investment, with breakeven expected during the second half of this financial year with "addressable global market opportunity of c£40m-£50m pa in revenue terms to Xeros in the medium term."

Confirming the investment, secured from share placing, Xeros said that license agreements were in place with five manufacturers of garment washing/processing machines, three major European manufacturers of components for the machine supply chain and direct commercial discussions with six of the top ten global washing machine manufacturers.

The Placing and Subscription will raise gross proceeds of £4.5m in aggregate, with up to an additional £1m being raised through the Retail Offer to allow Shareholders to subscribe alongside the Placing.

Net proceeds of the Fundraising will be used to strengthen the Company's balance sheet, enabling execution of current contracts, pursuit of global opportunities and to provide reassurance to contract counterparties, provide working capital as the Company advances commercialisation of its Core Technologies, provide contingency against timing of royalty income and operational cash flow break-even, and, as appropriate, scale operations and accelerate development of other markets and applications for the Company's IP.

Neil Austin, CEO of Xeros, said: "Our technology solutions drive significant cost, energy and water efficiencies for our customers while reducing pollution in both the manufacture and laundering of clothing.

"The fundraise puts the Group in the strongest possible position to execute its commercialisation strategy, which is focused around high-margin licence fees and recurring consumable revenue.

"I would like to take this opportunity to thank investors for their continued support at this exciting time for Xeros."

Xeros website

Images: Xeros


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