Xeros Technology Group plc Terms of Warrants Consultation and Trading Update (9729U)
November 29 2023 - 1:00AM
UK Regulatory
TIDMXSG
RNS Number : 9729U
Xeros Technology Group plc
29 November 2023
29 November 2023
This announcement contains inside information
Xeros Technology Group plc
('Xeros", the "Company" or the "Group")
Consultation on Amendment to Terms of Warrants and Trading
Update
Xeros Technology Group plc (AIM: XSG), the creator of
technologies that reduce the impact of clothing on the planet,
today provides an update on outstanding Warrants and an update on
trading to date in the full year to 31 December 2023 ("FY23" or
"Period").
Warrants
There are currently in issue 127,192,846 Warrants to subscribe
for ordinary shares, which were issued in October 2022 as part of
the fundraise undertaken by the Company at that time. These
Warrants can be exercised at a price of 5p and are due to lapse on
21 April 2024. Following requests from certain Warrant holders, the
Board is currently exploring the possibility of amending the terms
of these Warrants with a view to bringing additional capital into
the business in the near-term in a cost-effective manner. Further
announcements will be made following the Board's review.
Trading update
Adjusted EBITDA(1) for FY23 is expected to be in line with
market expectations(2) as a result of continued focus on cost
control. The revenue for the Period is dependent on the timing of a
specific XOrb shipment delivery date to one of the Group's licence
partners. The final timing of this delivery, either during FY23 or
post Period-end will determine whether or not FY23 revenue will be
in line with market expectations. Delivery of this order during
FY23 would see the Group's performance ahead of expectations at the
Adjusted EBITDA level.
The Group anticipates that the year-end cash balance will be in
line with market expectations(2) , subject to the timely receipt of
an R&D tax credit payment of approximately GBP0.5m from HMRC,
which is anticipated to be received before the year end.
Neil Austin, CEO said:
"We are delighted that the business continues to perform as
expected. We would also to thank our shareholders for their
continuing and proactive support, in what is an important year in
Xeros' transition to break-even."
(1) Adjusted EBITDA losses are defined as the loss on ordinary
activities before interest, tax, share-based payment expense,
warrant expense, depreciation and amortisation.
(2) For the purpose of this announcement, the Board believes market
expectations for FY23 to be Revenue of GBP0.8m, Adjusted EBITDA
loss of GBP4.7 million and a year-end cash balance of GBP1.6
million.
Enquiries
Xeros Technology Group plc Tel: 0114 269 9656
Neil Austin, Chief Executive Officer
Alex Tristram, Director of Finance
Cavendish Capital Markets Limited (Nominated Adviser and Broker) Tel: 020 7220 0570
Julian Blunt/Teddy Whiley, Corporate Finance
Andrew Burdis/Sunila de Silva, ECM
Belvedere PR xeros@belvederepr.com
Cat Valentine Mob: 07715 769 078
Keeley Clarke Mob: 07967 816 525
About Xeros
Xeros Technology plc has developed patented and proven,
industry-leading technologies which reduce the environmental impact
of how industries make and care for clothes.
The traditional wet processing methods used in industrial and
domestic laundry and garment manufacturing consume billions of
litres of fresh water and large amounts of energy and chemicals, as
well as damaging and weakening clothing fibres and creating rising
levels of environmental pollution. It is estimated that washing
machines contribute 35% of the 171 trillion microplastic particles
in the ocean.
A range of actors, including consumers, the media NGOs and
regulators are exerting pressure on these industries, with
legislative action beginning to be taken.
Xeros' three main technologies, Filtration, Finish, and Care,
facilitate garment manufacturers, industrial laundries, domestic
washing machine manufacturers and consumers, to reduce their
environmental impact, whilst also significantly improving
efficiency in the process.
Xeros' model is to generate revenue from licensing its
technologies, generating royalties and the sale of consumables.
Currently there are 8 agreements in place. The addressable markets
in Filtration, Finish and Care are estimated to be valued at
GBP350m p.a., GBP132m p.a. and GBP3bn p.a. respectively.
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