Trading Update

RNS Number : 0278R

MyCelx Technologies Corporation

04 March 2016

 

MYCELX TECHNOLOGIES CORPORATION (AIM: MYX)
("MYCELX" or the "Company")

Contract and Trading Update

MYCELX Technologies Corporation (AIM: MYX), the clean water technology company providing patented solutions for commercial industrial markets worldwide, announces that is has agreed a fixed term, two year contract for water treatment with one of its existing customers in the Middle East for a total value of US$5 million over the life of the contract.

In light of the continued weakness in the oil and gas industry and associated services, MYCELX's customers increased their focus on their own cost management during the last year. The award of a fixed term contract demonstrates MYCELX's value proposition and reliable performance of its technology for companies in the petrochemical industry.

This contract underpins a proportion of the Company's sales revenue for 2016. However, in this challenging environment, the Company has reviewed the run rate for its installed customer base and currently estimates a conservative base-level recurring revenue for FY2016 of US$8 million. MYCELX has continued with its expense control measures and expects that the Company would be at least cash neutral from operations in 2016 at this level of revenue.

The Company is actively pursuing its advanced stage pipeline and large scale trials are ongoing. The budgets and schedules for many projects remain uncertain and the whole oil and gas industry is observing significant delays in capital expenditure. However, the award of any further project work would materially improve the Company's revenue expectations for FY 2016.

For further information please contact:

MYCELX Technologies Corporation Connie Mixon, CEO Kim Slayton, Interim CFO	Tel: [phone]
RFC Ambrian Limited Corporate Finance Samantha Harrison Jonathan Stephens Corporate Broking Jonathan Williams Kim Eckhof	Tel: [phone]
Numis Securities Limited Corporate Broking James Black Ben Stoop	Tel: [phone]
Bell Pottinger Nick Lambert Henry Lerwill	Tel: [phone]

 

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