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

Mycelx TechnologiesAnnouncement

23/09/2024 07:00

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RNS Number : 2035F  MyCelx Technologies Corporation  23 September 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").

 

23 September 2024

MYCELX Technologies Corporation

("MYCELX" or the "Company")

Trading Update

MYCELX Technologies Corporation (AIM: MYX), the clean water and clean air
technology company, announces a trading update following changes to the
customer's project timeline at one of its REGEN installations for a customer
in Nigeria.

 

As set out in the announcement dated 23 August 2024, the Company highlighted
that the outturn for the current financial year would be dependent on projects
meeting delivery timelines with one significant project in particular
expecting to be recognised in December when factory acceptance testing was due
to be completed.

 

Subsequent to successful achievement of the last project milestone three weeks
ago for the above-mentioned project, the Company has just recently been made
aware by the customer that the next major milestone has been delayed for
several weeks. While not unusual for a project of this size and complexity,
this delay comes at a critical time in terms of MYCELX's ability to deliver
its equipment as scheduled. The Board recognises that there is now a strong
possibility this delay will affect the Company's factory acceptance testing in
mid-December, and revenue recognition in 2024, and as a result, the Board has
made the prudent decision to shift anticipated revenue from the project from
Q4 2024 to Q1 2025. The Company has accordingly revised its 2024 revenue
forecast of $9.5 million to $4.5-$5.0 million and will recognise the project
value of $5.4 million in 2025.

 

There will be no loss of revenue for the Company and minimal impact to the
forecasted year end cash balance given MYCELX will continue to receive
milestone payments that keep the project cash flow positive despite the delay.
The Company will be announcing its Interim Results in the coming days.

 

The Company looks forward to working closely with its partners in Nigeria to
successfully deliver this project and continuing its momentum in REGEN
adoption in the oil and gas market.

 

Connie Mixon, CEO, commented:

 

"While this project will be marginally delayed, there will be no significant
effect on the business since revenue is simply shifting from Q4 2024 to Q1
2025 and impact to the Company's cash balance at year end is minimal. We look
forward to completion of this project which is our fourth installation in
Nigeria where our technology is enabling producers to achieve their goals of
better water treatment and a cleaner environment.

 

We plan to announce our Interim Results over the coming days, which will give
the market further insight into the progress across our core markets."

 

For further information, please contact:

 MYCELX Technologies Corporation

 Connie Mixon, CEO                                              Tel: +1 888 306 6843

 Kim Slayton, CFO

 Canaccord Genuity Limited (Nominated Adviser and Sole Broker)

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

 Charlie Hammond

 Celicourt Communications (Financial PR)

 Mark Antelme                                                   Tel: +44 20 7770 6424

 Jimmy Lea

 Charlie Denley-Myerson

 

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