REG - MyCelx Tech. Corp. MyCelx Tech. Cp-MYXR - Operational and Trading Update

Mycelx TechnologiesAnnouncement

07/04/2025 07:00

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RNS Number : 8314D  MyCelx Technologies Corporation  07 April 2025

The information contained within this Announcement is deemed by MYCELX
Technologies Corporation to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as it forms part
of UK domestic law by virtue of the European Union (Withdrawal) Act 2018
("MAR").

 

7 April 2025

 

MYCELX Technologies Corporation

("MYCELX" or the "Company")

 

Operational and Trading Update

 

MYCELX Technologies Corporation (AIM: MYX), the clean water and clean air
technology company, is pleased to provide an update on its trading and
business operations.

 

Earn-out on sale of Saudi Arabia business operations

 

MYCELX confirms that the earn-out for the first 12-month period from the sale
of its Saudi Arabia branch assets in 2024 is $1.25 million and the Company
expects to recognize a further gain on the sale in 2025 based on the earn-out
for the second 12-month period.

 

Successful water trial in the United States

 

MYCELX is also pleased to update the market on a successful produced water
trial in the United States ("US") that was completed in Q1 2025. The project
deployed the MAC ("MYCELX Advanced Coalescer") and REGEN system with a global
integrated oil producer. The trial confirmed that the patented MYCELX solution
achieves performance benefits with its two-stage system that are beyond the
operating capability of the traditional three stage systems currently in use
by our competitors. The primary goals of the trial were showcasing the
efficiency of removing residual oil from produced water as well as measuring
the quality level of the captured oil.

 

The MYCELX system recovered over 99% of the oil in the water and the oil
quality was well above the producer's sales specification. The immediate
benefits to the producer include their ability to sell the high-quality
recovered oil creating a continuous revenue stream, and recycling the
remaining water for use in their other processes. The Company believes that
this is a leap forward in creating value and optimizing benefits from produced
water treatment and looks forward to updating the market on future progress
and projects.

 

The Company will begin two anticipated PFAS trials within the next 4-6 weeks
and is working with channel partners to sell its PFAS-Flex™ mobile systems
to address AFFF and groundwater remediation projects. Robust project proposals
and bids continue as well as testing potential customer's water samples for
treatment evaluation and system design.

 

Impact of tariffs on FY 2025 revenue guidance

 

In light of the United States reciprocal tariff implementation that went into
effect on 2 April 2025, the Company is updating its FY 2025 forecast in
consideration of the tariffs on steel equipment and parts. MYCELX buys a
portion of equipment and parts from US fabricators who import raw materials
that will be subject to tariffs. The tariff charges will be passed on to
customers such as MYCELX through increased equipment prices. Given the
uncertainty created by the tariff program, which management will continue to
monitor, projects we have quoted but not signed must be requoted for customer
approvals, which could potentially impact project and delivery timelines later
in the year. In recognition of the difficult forecast environment, the Company
is revising FY 2025 revenue to be between $12.5 million and $15.5 million. The
wide range reflects the size of the projects in the forecast and project
pipeline. The Company will be profitable at the lower end of the range with
inclusion of the gain on the Saudi asset sale.

 

Connie Mixon, CEO, commented:

 

"I am pleased to provide a positive update relating to the first earn-out
period of the Saudi Arabia business operations that we sold last year;
alongside the highly successful results we achieved during a produced water
trial we were involved in. We also felt it prudent to revisit our revenue
guidance for FY 2025, in light of the reciprocal tariff implementation that
was enacted on 2 April 2025. While we do not expect any major changes to our
order backlog, given the timeline required to requote for certain projects, we
believe the timing of our revenue recognition could be impacted during the
period.

 

We continue to make positive progress as we move into the second quarter of
2025 and we look forward to announcing our 2024 Full Year Results next month."

 

For further information, please contact:

 

 MYCELX Technologies Corporation

 Connie Mixon, CEO                                                      Tel: +1 888 306 6843

 Kim Slayton, CFO

 Cavendish Capital Markets Limited (Nominated Adviser and Sole Broker)

 Giles Balleny / Dan Hodkinson (Corporate Finance)                      Tel: +44 20 7220 0500

 Ondraya Swanson (Corporate Broking)

 Jasper Berry / Michael Johnson (Sales)

 Celicourt Communications (Financial PR)

 Mark Antelme                                                           Tel: +44 20 7770 6424

 Jimmy Lea

 Charlie Denley-Myerson

 

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