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

Mycelx TechnologiesAnnouncement

16/11/2023 07:00

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RNS Number : 6171T  MyCelx Technologies Corporation  16 November 2023

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").

 

16 November 2023

 

MYCELX TECHNOLOGIES CORPORATION (AIM: MYX)

 

Trading Update

 

MYCELX Technologies Corporation ("MYCELX" or the "Company"), the clean water
and clean air technology company transforming the environmental impact of
industry, announces a trading update today.

 

The Company is pleased to announce it has been notified a project valued at
$5.4 million to MYCELX has been awarded for deployment of its REGEN media
during oil production to meet the strict requirements for overboard discharge.
The Company expects a formal purchase order in this regard in the coming days.
REGEN was exclusively specified for this project because of its ability to
reliably meet the strict water purity requirements of its client and
regulations. Whilst the Company will not recognise revenue from the sale of
the new equipment and media until 2024, this award will further solidify our
position as a leader in clean production technology.

 

Following a robust performance for the first half of 2023, which included a
number of project wins and new trials being signed, the Company continues to
make progress in all of its target markets. However, unforeseeable events at
two projects have impacted H2 2023 revenue. A variable volume dependent
contract has not yet met anticipated volumes due to less plant activity. We
expect the received volumes to ramp up as plant activity increases. Elsewhere,
an unscheduled plant shut down led to the delay in the mobilisation of another
project which we now anticipate will commence operations before year-end. As a
result, revenue for 2023 is now expected to be in the range of $11.0 million -
$11.8 million, against market expectations of $13.1 million. There are several
other potential opportunities which could influence year-end revenue within
the range, but final outturn is primarily dependent on the activity at these
two projects. As a consequence, the Company also expects profitability for
2023 to be reduced versus previous market expectations.

 

Whilst we are disappointed in these unforeseen challenges, these longer
duration projects underpin our outlook for next year. These projects together
with our advance opportunity pipeline, increasing order book and legacy media
sales enable us to increase our 2024 guidance to $17.5 million from market
estimates of $14.9 million. The Company will provide further trading updates
as we continue to build on the momentum in our core markets.

 

The Company is making progress in the PFAS market continuing with a landfill
leachate trial in coordination with a global engineering and consulting
company and a series of drinking water trials with a global water treatment
company. Whilst we will continue to participate in these and other important
trials in 2024, we expect to convert trials to project sales in 2024.
Importantly, the U.S. EPA Administrator has recently stated the Agency is
committed to finalising PFAS standards for drinking water by year-end 2023
which are expected to reduce the uncertainty that, the Company believes, has
contributed to the delay of adoption of new technology and prevented
enforcement of PFAS treatment for drinking water.

 

Connie Mixon, CEO, commented:

 

"Although we are revising our financial guidance for 2023, we believe that
this is more than offset by the expected increase to revenue in 2024.
Following a strong performance in H1 2023 we continue to make consistent
progress in all of our core target markets and we are especially pleased by
the new contract award for deploying our REGEN media. The Company is poised to
capture more projects in this active market where awareness of our REGEN
media's capability to support higher production levels and cleaner water is
taking hold. We look forward to updating investors on material developments in
all of our core markets when we can.

 

As a business, we continue to benefit from our proprietary technology that
allows our clients to maximise their operational performance while minimising
their environmental impact. These tailwinds leave us well positioned as we
head into 2024, as we look to aggressively pursue projects where we have a
differentiator, can leverage strategic partnerships and deliver value to our
customers and stakeholders."

 

For further information, please contact:

 

 MYCELX Technologies Corporation

 Connie Mixon, CEO                                  Tel: +1 888 306 6843

 Kim Slayton, CFO

 Canaccord Genuity Limited (Nomad and Sole Broker)

 Henry Fitzgerald-O'Connor                          Tel: +44 20 7523 8000

 Gordon Hamilton

 Celicourt Communications (Financial PR)

 Mark Antelme                                       Tel: +44 20 7770 6424

 Jimmy Lea

 Charlie Denley-Myerson

 

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