Majority stake in medical device manufacturer

RNS Number : 6256I

HeiQ PLC

15 December 2020

 

This article is not intended to be distributed in the USA.

15 December 2020

HeiQ Plc

("HeiQ" or "the Company")

Concludes acquisition of majority stake in Spanish medical device manufacturer

HeiQ Plc (LSE:HEIQ), an established global brand in materials and textile innovation which operates in high-growth markets, is pleased to announce that it has completed the acquisition of a majority stake in a leading Spanish mask manufacturer, MasFabEs, further to entering into a joint venture outlined in the Company's Prospectus. The manufacturer has been renamed HeiQ Medica S.L. and will manufacture medical devices with HeiQ's cutting-edge textile technologies.

MasFabEs has already been producing OTC (over the counter) medical device Type IIR surgical masks (certified for use in a close clinical environments), enhanced with HeiQ Viroblock technology, since the beginning of the pandemic. To date, over 1 billion community face coverings as well as medical masks enhanced with HeiQ Viroblock technology have been sold and the technology is already being used by more than 150 major mask brands such as Burberry.

The Company continues to experience strong demand for surgical masks which benefit from the extra protection provided by its Swiss Technology Award-winning HeiQ Viroblock technology. With a maximum production capacity of 15 million masks per month, enough to cover the needs of entire Switzerland with two masks a day, this acquisition will provide HeiQ with more control over the manufacture of its products. It will also provide the Company with an ideal base from which to establish an R&D hub for medical devices in Europe. Bulk order supply will be prioritised for institutions in the medical and healthcare sectors, such as hospitals, clinics, pharmacies and care homes. The masks will also be available on HeiQ's direct to consumer webshop.

HeiQ co-founder and CEO Carlo Centonze said:

"As a leading, profitable player in the $10 billion antimicrobial market, this manufacturing capability will ensure that we are well positioned to meet the strong on-going demand that we are experiencing for our products. The acquisition is in line with our stated strategy to deliver shareholder value by building   on the significant momentum achieved by HeiQ Viroblock while also growing other innovations within our core product portfolio. The pandemic has changed our behaviour for good. Following the SARS epidemic in Asia in 2003, all medical and healthcare workers now use face masks daily in this region and we are confident that this practice will continue worldwide even when the Covid-19 pandemic is under control.

"The third pillar of our growth strategy is focused on launching new high margin innovations which serve high growth markets. We are working on a range of exciting technologies, including a new antimicrobial technology with our long standing Australian partner Xefco, as well as our graphene membrane innovation. We look forward to sharing news of a number of exciting advancements ongoing within our R&D pipeline in the coming months."

Pedro Herranz, Co-founder and General Manager of MasFabEs, said:

"As a company that was founded expressly to provide "made in Spain" products, hence the name MasFabEs (Mascarillas de Fabricación Española), we were already producing HeiQ Viroblock powered masks and enjoyed an excellent relationship with HeiQ. Their majority participation, distribution reach and their plans for applying their materials innovations to medical devices were received with open arms and we are excited about future developments."

For further information, please contact:

HeiQ Plc Carlo Centonze (CEO)	[phone]
Arlington Group Asset Management Limited (Financial Advisor and Joint Broker) Charles Cannon Brookes	[phone]
Cenkos Securities plc (Joint Broker) Stephen Keys / Callum Davidson / Michael Johnson	[phone]
Newgate Communications (Media Enquiries) Elisabeth Cowell / Robin Tozer / Megan Kovach	[phone] [e-mail]

About HeiQ

HeiQ is a pioneer and at the forefront of global technology in the $10 billion antimicrobial fabrics and $24 billion textile chemicals market. With the focus on materials and textile innovation, HeiQ has created some of the most effective, durable and high-performance technologies and textile effects in the market today, which cool, warm, dry, repel, purify, and destroy viruses. Since 2005, HeiQ has developed over 200 technologies in partnership with 300 major brands.

HeiQ is a high intellectual capital company which has successfully built up a reputation in textile technologies, having won multiple awards and innovating with leading eco-conscious brands such as Patagonia.

Led by an experienced management team, HeiQ rapidly researches new solutions for partners, quickly delivers scaled up manufacturing from its sites across the world and helps partners market the product to end consumers - aiming for lab to consumer in months.

HeiQ aims to deliver growth for its shareholders through a combination of increased sales of its core products and by entering additional lucrative markets through disruptive innovations.

 

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