MyCelx Technologies Corporation Trading Update (7803Q)
02 March 2021 - 6:00PM
UK Regulatory
TIDMMYX TIDMTTM
RNS Number : 7803Q
MyCelx Technologies Corporation
02 March 2021
2 March 2021
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). This inside
information is now considered to be in the public domain.
MYCELX TECHNOLOGIES CORPORATION (AIM: MYX)
Trading Update
MYCELX Technologies Corporation ("MYCELX" or the "Company"), the
clean water and air technology experts, supplying customers with
cost-effective, future-proof solutions that optimise production and
protect the environment, is pleased to announce a trading update on
the Company's operations.
MYCELX has made a strong start to the year with two project
extensions signed with customers in the Kingdom of Saudi Arabia.
These projects confirm that MYCELX's superior solutions continue to
support its customers' efforts to optimise production, increase
cost savings and improve energy efficiency. During Q1, the Company
will commence delivery of the equipment for its third sale to
Nigeria.
Following product development initiatives in 2020, carried out
to enhance its REGEN solution, the Company has secured a paid
trial. This will demonstrate REGEN's superior performance over
other water treatment offerings for Enhanced Oil Recovery ("EOR")
production. The Company has commenced fabrication of this system in
Q1 and anticipates that a successful outcome of this trial will
lead to heightened interest in the REGEN product offering by
leading EOR producers.
The value of these project extensions, trial and capital sale
amounts to $3.5m in revenue for 2021.
As previously reported, the impact of the COVID-19 pandemic and
the resulting disruption to its core markets meant that 2020 was an
extremely challenging year for the business, with generated revenue
of $7.1 million during the year. The Company's strong start to this
year demonstrates it has successfully navigated the downturn by
focusing on supporting customers, advancing product development
initiatives and implementing cost controls. The Company notes the
recent increase in activity in core markets, and is well positioned
to progress new contracts as the global economy begins to
recover.
MYCELX also recently announced the sale of its building in
Duluth, Georgia, USA, to right-size its office space needs across
its main operating locations, as part of the cost reduction
program. The sale enables MYCELX to achieve a financial gain of
approximately $2.5 million. After the sale closes, the Company will
have circa $6 million of cash and cash equivalents on the balance
sheet.
Commenting on the market update, Connie Mixon, CEO, said:
"Following a challenging year, I am pleased to report that we
are seeing an increase in activity in the markets in which we
operate. This can be seen with the two contract extensions we have
signed in Q1 2021, alongside the exciting opportunities arising
from the paid trial for REGEN and our development of novel product
applications. While we expect it to take time for the wider energy
and industrial markets to normalize, we anticipate bidding activity
by customers to increase, bolstered by the global economic
recovery.
The Company continues to benefit from being in a financially
robust position, following the cost reduction measures implemented
in 2020 and the sale of the building in Duluth, and we look forward
to keeping our stakeholders updated on our business progress over
the coming months."
For further information please contact:
MYCELX Technologies Corporation
Connie Mixon, CEO Tel: +1 888 306 6843
Kim Slayton, CFO
Canaccord Genuity, Nominated Adviser
Henry Fitzgerald-O'Connor Tel: + 44 20 7523 8000
Georgina McCooke
Celicourt
Mark Antelme Tel: +44 20 8434 2754
Jimmy Lea
Notes to Editors
MYCELX is a revolutionary oil-free water technology company
solving the world's toughest oil removal problems in the Oil and
Gas industry. The systems are based upon scientific breakthrough
for a completely different approach to permanent oil removal. The
Company created the patented MYCELX polymer using innovative
molecular cohesion for removing oil from water far beyond what
conventional systems have ever achieved. MYCELX systems remove oil
to critically low levels in a much smaller physical footprint than
conventional systems and in a virtually fail-safe process.
www.mycelx.com
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