Xeros Technology Group plc Tanning business spun-out to management team (7019N)
26 September 2019 - 4:01PM
UK Regulatory
TIDMXSG
RNS Number : 7019N
Xeros Technology Group plc
26 September 2019
26 September 2019
Xeros Technology Group plc
Tanning business spun-out to Qualus management team
Xeros Technology Group plc (AIM: XSG, 'the Group', 'Xeros'), the
developer and provider of water saving and filtration technologies
with multiple commercial applications, has spun out its Qualus
tanning business operations to its management team in exchange for
an exclusive worldwide licensing and royalty agreement.
The Qualus management team has formed a new company, ESTR
Limited ('ESTR'), which has acquired the physical assets associated
with the business, its contracts including the LEFARC agreement and
the brand "Qualus".
Xeros has provided ESTR with a capped convertible loan facility
in order to fund the business until the end of December 2019. The
management team plan to raise further financing to fully
commercialise the business.
ESTR has the exclusive rights for the use of Xeros' patents in
the tanning market and will pay the Group a royalty on its
worldwide income in respect of these patents. Royalty levels, which
are subject to contractual minimums from 2022 onwards, are in line
with Xeros' expectations for this application.
This spin-out will reduce the Group's cost base beyond December
2019 as part of the previously communicated intention to be a pure
play licensing company with a monthly cash burn rate of GBP0.6m per
month from January 2020.
In the event that ESTR does not meet its contractual
obligations, the licensing rights revert back to Xeros.
Mark Nichols, Chief Executive of Xeros, said:
"This agreement is another milestone in the migration of Xeros
to a pure-play licensing and royalty business and will further
reduce our cost base.
"ESTR is best placed to commercialise our tanning patents. The
team has the expertise and credibility both to execute existing and
future contracts and to raise the finance required to take the
business forward."
Enquiries:
Xeros Technology Group plc Tel: 0114 321 6328
Mark Nichols, Chief Executive Officer
Paul Denney, Chief Financial Officer
Jefferies International Limited (Nominated Tel: 020 7029 8000
Adviser and Joint Broker)
Simon Hardy / Will Soutar
Berenberg (Joint Broker) Tel: 020 3207 7800
Chris Bowman / Ben Wright / Laure Fine
Instinctif Partners Tel: 020 7457 2020
Adrian Duffield / Kay Larsen / Chantal Woolcock
Notes to Editors
Xeros Technology Group plc (LN: XSG) is a platform technology
Group that is reinventing water intensive industrial and commercial
processes.
Xeros' patented XOrb(TM) technologies significantly reduce the
amount of water used in a number of major applications with the
remaining water becoming far more efficient in either affixing or
removing molecules from substrates such as fabrics and garments.
The result being significant improvements in economic, operational,
product and sustainability outcomes. The Group is applying its
technology in the fields of cleaning, tanning and textiles.
Xeros' XDrum(TM) technology is used to apply XOrbs in world
scale commercial and domestic markets and has signed multiple
agreements to license its products.
XFiltra(TM) is Xeros' in machine filtration technology which
enables major reductions in the amount of microfibres being
released from washing machines into the marine environment.
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contact rns@lseg.com or visit www.rns.com.
END
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