Last checked at 19 Mar 2020 07:00
19 March 2020
Xeros Technology Group plc
Licensing agreement with leading Asian OEM for garment finishing
Xeros Technology Group plc (AIM: XSG, 'Xeros', 'the Group'), the developer and provider of water saving and filtration technologies with multiple commercial and domestic applications, has signed a licensing agreement ('agreement') with Ramsons Garment Finishing Equipments PVT Ltd ('Ramsons'), one of the largest garment finishing equipment suppliers in South Asia.
The agreement provides Ramsons with an exclusive license for the manufacture and sale of Xeros-enabled garment finishing and dyeing equipment in South Asia. Under the terms of the agreement, Xeros will receive a royalty for each XDrum™ machine sold by Ramsons and a share of the multi-year annuity revenues, paid by the garment manufacturers, for the ongoing use of XOrbs™. The agreement allows for additional geographies to be added into the future.
Denim finishing will be the first application to be commercialised under the agreement. Xeros and Ramsons are currently developing cycles on a 5,000 litre XDrum™ machine ahead of trials with major denim manufacturers. The first sales of machines are anticipated in the second half of 2020, albeit with limited revenue impact this year.
About 1.2 billion pairs of jeans are manufactured globally every year. Xeros' technology significantly reduces the volume of water, chemistry and cycle time used in the processing of raw denim jeans into consumer products.
Mark Nichols, CEO of Xeros commented:
"The process of making garments, and especially denim, is putting enormous pressure on our natural environment. It consumes vast amounts of water and other raw materials whilst producing chemical and greenhouse gas emissions.
"Working together with Ramsons to embed our products in their garment finishing equipment, we have an opportunity to significantly improve the sustainability of the clothes we all wear.
"This agreement is our first in apparel production and it validates our efforts to prove that our innovative technologies can have a significant impact in the sector."
Sunder Belani, Managing Director Ramsons commented:
"Protecting the earth's natural resources and our precious environment is the mantra of sustainability.
"Across India and South Asia garment manufacturers are actively looking for new and innovative technologies to help us protect our environment, which is under extreme pressure from the effects of a changing climate.
"By embedding Xeros' products in our equipment our clients will save water, energy and reduce harmful emissions. It represents the best option for sustainability."
ENDS
Xeros Technology Group plc Mark Nichols, Chief Executive Officer Paul Denney, Chief Financial Officer
| Tel: 0114 321 6328
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finnCap Limited (Nominated Adviser, Broker) Julian Blunt / Teddy Whiley, Corporate Finance Andrew Burdis, ECM
| Tel: 020 7220 0570 |
Notes to Editors
Xeros Technology Group plc is a platform technology Group that is transforming water intensive industrial and commercial processes.
Xeros' patented XOrbTM technologies significantly reduce the amount of water used in the washing or dyeing of soft substrates such as garments and fabrics. They enable the remaining water to become far more efficient and effective in either affixing or removing molecules, the result being improvements in economic, operational, product and sustainability outcomes. The Group is applying its technology in the fields of cleaning, tanning and textiles.
Xeros' XDrumTM technology is a patented, simple, low cost machine drum design which enables XOrbs to be introduced into and subsequently removed from process cycles in Xeros' chosen markets. The design enables rotating drum machine Original Equipment Manufacturers ("OEMs") in the fields of garment manufacture and cleaning, the ability to make simple and low cost changes in their production lines to incorporate the Company's XOrbTM technology.
The Group has signed multiple agreements to develop and license its XDrumTM and XOrbTM products in major commercial and domestic markets.
XFiltraTM is a patented in-machine filtration technology which is designed to prevent harmful micro-plastics generated by washing cycles from being released into the aquacycle. Plastics released from synthetic clothing during washing cycles is one of the single largest sources of primary micro-plastic pollution. For more information, please visit - http://www.xerostech.com/
About Ramsons
For more information, please visit - http://www.ramsonsindia.com/