Technology business aiming to clean up with £9m fundraise
Xeros Technology Group, which is using technology to make cleaning more sustainable, has announced a proposed conditional placing to raise £8m, along with an open offer to raise up to £1m.
The conditional placing will involve 3,333,333 shares of 15 pence each in the capital of the company, at an issue price of 240 pence per share.
And the Rotherham-headquartered business intends to give all qualifying shareholders an opportunity to subscribe for up to 416,586 new ordinary shares via an open offer at the issue price.
Xeros says net proceeds of the fundraise will be used to provide funding to accelerate commercialisation of its XFiltra technology for the domestic washing machine market over the next two years, with revenue anticipated in 2023.
The proceeds will also provide funding to continue the execution of the company’s current portfolio of contracts and development agreements, as well as providing contingency money for any further potential Covid-19 related delays.
Xeros notes its current plans with its licensees and partners mean it expects to be able to deliver a cash breakeven position by the end of 2022.
The fundraising is conditional on shareholder approval at a General Meeting of the company on 25 March 2021.
Mark Nichols, CEO, said: “This placing enables the development and commercialisation by licensees of our filtration technology platform, XFiltraTM, in the domestic washing machine market where there is now regulatory and consumer pressure to stop some 280,000,000 kilograms of microfibres from washing clothes reaching the environment.
“It will also finance growth in the number of licensing contracts and high margin revenues in our XOrbTM/XDrumTM technology platform, which radically reduce environmental impacts and costs across large parts of the clothing and fabric lifecycle.
“The support of existing and new shareholders in delivering these environmental improvements in global scale industries is highly valued by both the company and the increasing numbers of stakeholders who will now benefit.”