Terms of Warrants Consultation and Trading Update

Xeros Technology Group plc

29 November 2023

 

29 November 2023

This announcement contains inside information

Xeros Technology Group plc

('Xeros", the "Company" or the "Group")

Consultation on Amendment to Terms of Warrants and Trading Update

Xeros Technology Group plc (AIM: XSG), the creator of technologies that reduce the impact of clothing on the planet, today provides an update on outstanding Warrants and an update on trading to date in the full year to 31 December 2023 ("FY23" or "Period").

Warrants

There are currently in issue 127,192,846 Warrants to subscribe for ordinary shares, which were issued in October 2022 as part of the fundraise undertaken by the Company at that time. These Warrants can be exercised at a price of 5p and are due to lapse on 21 April 2024. Following requests from certain Warrant holders, the Board is currently exploring the possibility of amending the terms of these Warrants with a view to bringing additional capital into the business in the near-term in a cost-effective manner. Further announcements will be made following the Board's review.

Trading update

Adjusted EBITDA¹ for FY23 is expected to be in line with market expectations² as a result of continued focus on cost control.  The revenue  for the Period is dependent on the timing of a specific XOrb shipment delivery date to one of the Group's licence partners.  The final timing of this delivery, either during FY23 or post Period-end will determine whether or not FY23 revenue will be in line with market expectations. Delivery of this order during FY23 would see the Group's performance ahead of expectations at the Adjusted EBITDA level.

The Group anticipates that the year-end cash balance will be in line with market expectations², subject to the timely receipt of an R&D tax credit payment of approximately £0.5m from HMRC, which is anticipated to be received before the year end.

Neil Austin, CEO said:

"We are delighted that the business continues to perform as expected. We would also to thank our shareholders for their continuing and proactive support, in what is an important year in Xeros' transition to break-even."

1	Adjusted EBITDA losses are defined as the loss on ordinary activities before interest, tax, share-based payment expense, warrant expense, depreciation and amortisation.
2	For the purpose of this announcement, the Board believes market expectations for FY23 to be Revenue of £0.8m, Adjusted EBITDA loss of £4.7 million and a year-end cash balance of £1.6 million.

Enquiries

Xeros Technology Group plc Neil Austin, Chief Executive Officer Alex Tristram, Director of Finance	Tel: [phone]
Cavendish Capital Markets Limited (Nominated Adviser and Broker) Julian Blunt/Teddy Whiley, Corporate Finance Andrew Burdis/Sunila de Silva, ECM	Tel: [phone]
Belvedere PR Cat Valentine Keeley Clarke	[e-mail] Mob: [phone] Mob: [phone]

About Xeros

Xeros Technology plc has developed patented and proven, industry-leading technologies which reduce the environmental impact of how industries make and care for clothes.

The traditional wet processing methods used in industrial and domestic laundry and garment manufacturing consume billions of litres of fresh water and large amounts of energy and chemicals, as well as damaging and weakening clothing fibres and creating rising levels of environmental pollution. It is estimated that washing machines contribute 35% of the 171 trillion microplastic particles in the ocean.

A range of actors, including consumers, the media NGOs and regulators are exerting pressure on these industries, with legislative action beginning to be taken.

Xeros' three main technologies, Filtration, Finish, and Care, facilitate garment manufacturers, industrial laundries, domestic washing machine manufacturers and consumers, to reduce their environmental impact, whilst also significantly improving efficiency in the process.

Xeros' model is to generate revenue from licensing its technologies, generating royalties and the sale of consumables. Currently there are 8 agreements in place. The addressable markets in Filtration, Finish and Care are estimated to be valued at £350m p.a., £132m p.a. and £3bn p.a. respectively.

 

END