Listed cleaning tech firm announces £15m placing

Cleaning technology group Xeros Technology Group has announced a placing shares to raise £15m. 

The listed firm said it would offer 150m new Ordinary Shares with existing and new institutional investors at a placing price of 10p per share. In addition to the placing, qualifying shareholders will be given the opportunity to subscribe for up to 49m new Ordinary Shares through an open offer to raise up to £5m.

Xeros, based at the Advanced Manufacturing Park, develops and provides water saving technologies. The applications are focused on large scale markets which are being impacted by increasing water scarcity and water costs.

The announcement comes a year after Xeros said it planned to raise £25m through 11m new ordinary shares at a price of 225 pence per placing share.

It said that it would use the proceeds to target and negotiate commercialisation and development agreements with domestic laundry machine OEMs. Xeros will look to receive up-front payments and a royalty per machine sold. 

In its High Performance Workwear division, having established a four-sites US network, Xeros plans to increase revenues and profitability and to target licensing options to cleaners and owners of large fleets of personal protective equipment.

In Commercial, Xeros is forecasting to continue the migration of this business to a licensing model with further agreements targeted with distributors and OEMs. It expects to receive first revenues in 2019 from its China licensing agreement signed with Jiangsu SeaLion Technology Development.

Xeros’ technology increases environmental sustainability through reducing water and chemical use and effluent production and delivers cost benefits to its customer. The Commercial Laundry business and High Performance Workwear business are both generating revenue and the Tanning business has a contract which is forecast to generate revenue in 2019.

The majority of the technical development for the Group’s applications has been completed. The Group’s cash burn rate has reduced and Xeros has plans for it to reduce further in 2019.

 Mark Nichols, Chief Executive of Xeros, said: “These additional funds will allow us to continue to execute on our IP-rich, asset-light strategy to commercialise our technologies, which address the key global environmental issues of water scarcity and pollution.

“The commercial benefits and sustainability improvements that our technologies deliver have been validated by a number of recent contracts.  These clearly demonstrate that our platform technology is capable of broad deployment in scale industries. 

“Our focus is on increasing the commercialisation of our technology in each of our markets working with channel partners and manufacturers whose businesses and customers are facing ever increasing pressure on their water use.”

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