REG - Xeros Tech Grp plc - Terms of Warrants Consultation and Trading Update

Xeros TechnologyAnnouncement

29/11/2023 07:00

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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 £0.5m 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 £0.8m, Adjusted EBITDA loss of £4.7 million and a
      year-end cash balance of £1.6 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 (mailto: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 £350m p.a., £132m p.a. and £3bn p.a.
respectively.

 

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