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

Mycelx TechnologiesAnnouncement

22/02/2024 07:15

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RNS Number : 0734E  MyCelx Technologies Corporation  22 February 2024

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").

 

22 February 2024

 

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, is pleased to announce a Trading Update, which includes select
financial extracts from its unaudited FY2023 results. The Company expects to
release its final audited results for FY2023 in May 2024.

 

MYCELX has made a very encouraging start to 2024, having sold its Saudi Arabia
business operations for an acquisition price of up to $7.125 million (split
$3.125 million on closing with the remainder deferred on an earn-out over the
following 24-month period), as noted in a separate announcement. The proceeds
of the sale will enable the Company to accelerate its marketing and sales plan
for its unique technologies in the burgeoning Perfluoroalkyl and
Polyfluoroalkyl Substances ("PFAS") remediation and Enhanced Oil Recovery
("EOR") markets. These markets are large and lucrative and the Board believes
they will deliver long term value and sustainable growth by leveraging
MYCELX's differentiated and environmentally effective solutions.

 

MYCELX recorded 2023 revenue of ca.$10.9 million, EBITDA of approximately
negative $2.5 million and a net loss of ca.$3.7 million. As of 31 December
2023, the Company had cash and cash equivalents of $383K.  MYCELX continues
to manage its working capital to support its future growth ambitions. The
Company will net approximately $2.75 million from the initial consideration of
the sale of its Saudi Arabian business operations after closing costs and
payments associated with transferring employee contracts.

 

When taking into account the sale of the Saudi Arabian business, MYCELX is
revising its forecasted revenue for 2024, which is now expected to be in the
range of $9.0 million - $10.0 million. The Company continues to focus on a
number of other potential opportunities which could influence 2024 revenue and
the final outturn is dependent on projects meeting delivery timelines.

 

Connie Mixon, CEO, commented:

 

"Our financial results in 2023 reflect unforeseen challenges in operations and
project timing. We have taken decisive action to improve financial performance
and we continue to make consistent progress in our core markets.

 

We have made a strong start to 2024 and, following the sale of our Saudi
Arabia business operations, our focus is on accelerating the marketing and
sales plan for our unique technologies in the PFAS remediation and EOR
markets. We believe that these core areas best showcase MYCELX's
differentiated and environmentally effective solutions and will ensure that
the Company can obtain strong levels of profitability and deliver long term
value for all our stakeholders going forward."

 

The financial information presented has been extracted from the unaudited
results and could be subject to possible change following the completion of
the Company's year-end audit process.

 

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

 Ana Ercegovic

 Celicourt Communications (Financial PR)

 Mark Antelme                                       Tel: +44 20 7770 6424

 Jimmy Lea

 Charlie Denley-Myerson

 

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