(Alliance News) - Xeros Technology Group PLC said Thursday it plans to raise up to GBP7 million through a heavily discounted share placing and open offer in order to fund operations until the end of 2020, with a further fundraise forecast.
Xeros will place 505.0 million shares at 1.00 pence each and issue a further 199.9 million shares at the same price through an open offer. Shares in Xeros closed 77% lower at 1.21 pence in London on Thursday, giving it a market capitalisation of GBP3.1 million.
"Xeros' products help reduce the increasing pressures on the world's supply of water," Chief Executive Officer Mark Nichols said. "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," Nichols added.
"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," Nichols continued.
Water saving firm Xeros explained the funds would be used to finance the firm until the end of 2020. The company will have to raise further funds, however, at the end of 2020 if not sooner.
By Ahren Lester; ahrenlester@alliancenews.com
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Xeros Tech (XSG)