LONDON (Alliance News) - Xeros Technology Group PLC on Thursday confirmed it raised about GBP40.0 million through a share placing, with the money to be used in its commercial laundry business in the Americas and Europe and other areas of the business.
In addition, the proceeds of the placing will be used to continue the development of technologies for the domestic laundry and leather processing markets, and to increase the scope and scale of its polymer science and engineering platforms so it can capitalise on opportunities for its polymer bead innovations.
Xeros, which has developed washing machines that use polymer beads in the washing process to reduce the need for cleaning powders and liquids, water and energy, had said late on Wednesday that it was in the late stages of talks with investors to raise the money.
The 17.8 million shares have been sold to new and existing institutional investors at 225 pence per share. Shares in Xeros were down 2.4% at 222.0p on Thursday morning.
Independently, IP Group PLC, an existing shareholder in Xeros, said it agreed to subscribe for 2.1 million shares available through the placing, amounting to GBP4.7 million. That will give London-listed IP Group, which helps to commercialise intellectual property, an 11.8% stake in the enlarged Xeros.
Jefferies, an investment bank, is acting as the sole bookrunner in connection with the Xeros placing.
Separately, Xeros said it is "rapidly gaining traction" in commercial laundry, citing an increasing US market take-up and figures showing that seven out of the 10 largest US hotel chains are now customers.
The company's accounts for the year to July 31 showed that its pretax loss widened to GBP10.7 million from GBP6.8 million the prior financial year. Revenue grew to GBP466,000 from GBP315,000, and Xeros said that contracted future revenues amounted to GBP1.6 million at the end of July.
Administrative expenses swelled to GBP11.1 million from GBP6.8 million.
Xeros said it spent GBP3.6 million on research and development including staff and patent costs against GBP3.0 million the prior year, alongside the commercial laundry working capital and start-up costs, in line with board expectations.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Ip Group (IPO)
Xeros Tech (XSG)