My XSG notes from April 2019 (some parts may have changed)20 Nov 2019 15:23
1yr operational progress:
·Chinese Hydrofinity (commercial laundry) licence signed
·Three additional sites operational in Marken (high performance workwear)
·10 year contract signed with Mexican tannery
·Heads of terms signed with two large scale tanneries
·Agreement signed with Eastern Laundry Systems to service commercial laundry customers in nine US states
·Joint development agreement signed with Chinese domestic washing machine manufacturer
·Raised £15m in deeply discounted share placing at 10p (61% to SP at the time) to provide additional capital for commercialisation strategy
Directors both bought £50k each at 10p in placing
23rd Jan 19 - A positive announcement from Xeros this morning, confirming that it has signed a Joint Development Agreement (JDA) with Wuxi Little Swan Company, a subsidiary of Midea Group, one of the worlds largest manufacturers of domestic washing machines.
HIGHLIGHTS
– This is a non-exclusive JDA to develop and design a prototype including Xeros' technologies - if successful this will enable future commercial discussions to take place
– In 2017, Wuxi sold 12.4m washing machines in China giving it a 28% share of the retail market - it also exported 3.9m washing machines
– Some basic assumptions to highlight the opportunity
– Assuming technology assessments proceed successfully and Wuxi / Xeros agree a royalty payment model – Assuming a $25 royalty per machine, if just 10% of existing sales convert to the Xeros technology, the
agreement could be worth $40m per annum with little or no associated cost – This compares to a current market cap of £15m (2/4/19)
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