Acquisition of Chem-Tex Laboratories, Inc

RNS Number : 3428I

HeiQ PLC

02 December 2022

 

2 December 2022

HeiQ Plc

("HeiQ" or "the Company")

Acquisition of Chem-Tex Laboratories, Inc

HeiQ Plc (LSE: HEIQ), an established global brand in materials and textile innovation which operates in high-growth markets, is pleased to announce the acquisition of the land and property of Chem-Tex Laboratories, Inc. ("Chem-Tex") in North Carolina, USA ("the Acquisition") for a total consideration of US$2.5 million. US$550,000 will be paid in cash and US$1.95 million in HeiQ Plc shares. The Acquisition will strengthen the Company's footprint in the USA, which is a key market for HeiQ .

Since May 2017, HeiQ's US subsidiary, HeiQ ChemTex has leased Chem-Tex's real estate property in Concord, North Carolina to develop and manufacture specialty chemicals for the functional flooring, textile, and industrial chemicals industries. HeiQ has now made a strategic decision to assume ownership of the land and property in order to safeguard past and future investments into its operations site. HeiQ foresees further expansion of the location over the coming years, serving mainly its global textile, functional flooring and industrial chemicals business.  

This Acquisition is expected to improve HeiQ's operating margin in 2023 and beyond and will also enable HeiQ to focus its future manufacturing investments in the USA, which have proven to be less exposed to energy price increases and critical base chemical raw materials availability challenges experienced in Europe in the recent years.

The sellers of Chem-Tex are three trusts, the beneficiaries of which are related to a minority shareholding of HeiQ Plc.

Recently joined HeiQ Chemtex Inc. (USA) CEO, Mike Abbott (former Hanes Inc. CTO) said:   

" We are excited to announce the acquisition of Chem-Tex's land and property, which is expected to improve operating margin for 2023 and beyond and also enable further expansion of HeiQ's current footprint in the USA market, that remains resilient in the current volatile macroeconomic environment."

Issue of Equity and Total Voting Rights  

The Company will issue 2,176,884 new ordinary shares ("Consideration Shares") to the sellers of Chem-Tex , at a price of £ 0.744 per share, which is the average 5 day closing price prior to signing in order to part satisfy the consideration due. Applications will be made for the Consideration Shares to be admitted to the standard segment of the Official List, and to trading on the London Stock Exchange's Main Market ("Admission").

It is expected that Admission will become effective, and that dealings in the new Ordinary Shares are expected to commence, at 08.00 a .m. on 8 December 202 2 .

Following Admission, the total number of Ordinary Shares in issue will be 136,734,308 and the total number of voting rights will therefore be 136,734,308 . This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

This announcement contains inside information.

For further information, please contact:

HeiQ Plc Carlo Centonze (CEO)	[phone]
Cenkos Securities plc (Joint Broker) Stephen Keys / Callum Davidson	[phone]
SEC Newgate (Media Enquiries) Elisabeth Cowell / Axaule Shukanayeva / Molly Gretton	[phone] HeiQ@s ecnewgate .co.uk

About HeiQ

HeiQ is focused on improving the lives of billions of people world-wide by innovating the materials people use every day. HeiQ has strong IP which is at the forefront of global technology in the $10 billion antimicrobial fabrics market, $24 billion textile chemicals market, the $50 billion probiotics market and the $150 billion man-made fibers market. It has also moved into the medical device, healthcare and hygiene coatings markets, to help make hospitals and healthcare environments more hygienic. 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 and M&A.

HeiQ has created some of the most effective, durable and high-performance technologies 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 and it has a significant R&D pipeline containing over 50 projects. The Company has won multiple awards and gained a strong reputation for the ESG & sustainable downstream effect of its innovations. HeiQ is the only company to have won the Swiss Technology award twice. It has also won the Swiss Environmental award with an innovation that saves energy and water consumption during the textile manufacturing process.

Led by an experienced leadership team, HeiQ researches new solutions for partners, 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.

 

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