(Alliance News) - Xeros Technology Group PLC on Friday said it has raised GBP6 million via a share placing and the PrimaryBid offer, after reporting narrowed loss in 2019.
The water saving and filtration products provider said its loss narrowed in 2019 to GBP18.5 million compared to GBP28.4 million a year earlier, as administrative expenses were reduced to GBP18.3 million from GBP23.4 million.
In addition, in 2018, Xeros booked a GBP5.4 million exceptional cost of sales, with no such cost reported in 2019.
Revenue, however, declined to GBP1.8 million from GBP2.7 million year-on-year, with move to licensing model and exit from direct operations.
"We intend to work with our partners during the rest of the year to provide a platform for high margin growth. Also, we intend to expand selectively on a geographic basis in each of our chosen applications," said Chief Executive Mark Nichols.
"We will do so from our reduced cost base with the announcement of today's equity placing enabling us to so during the course of the next two years," added Nichols.
On Friday, Xeros raised GBP5.7 million before fees and expenses through a placing of 1.14 billion of new shares at a price of 0.5 pence each.
Xeros shares were trading 8.2% higher in London on Friday afternoon at 0.81p each, giving it a market capitalisation of about GBP6.4 million.
In addition, the company said it issued 60.0 million shares on the PrimaryBid platform, raising another GBP300,000.
The proceeds will provide funding for the company's current portfolio of contracts and development agreements, with earnings before interest, tax, depreciation and amortization cash break-even expected in the second quarter of 2022.
"The fact that the PrimaryBid Offer was heavily oversubscribed and had to close early is an excellent outcome and confirms that retail investors continue to have strong support for Xeros, even in the current extraordinary times," explained Nichols.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Xeros Tech (XSG)