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XL TechGroup, Inc. (XLT)

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Monday 05 November, 2007

XL TechGroup, Inc.

EnGen validation and funding

XL TechGroup, Inc.
05 November 2007


Press Release                                                    5 November 2007


                               XL TechGroup, Inc.
                       ('XL TechGroup' or 'the Company')

          EnGen battery technology validated for commercial deployment
                        and receives additional funding


XL TechGroup (AIM: XLT), the systematic architect and builder of an ongoing
stream of high value new companies, is pleased to announce that EnGen LLC has
had its technology validated for commercial deployment by a global market leader
in the energy storage market and has also received an additional US$1 million in
funding from a fund associated with GEN3 Partners Inc, XL TechGroup's partner in
its value creation joint venture, GenXL LLC.

EnGen is engaged in the development of new technology solutions and services
using its proprietary nano-scale polymer technology, initially for the energy
storage or battery industry, but now with potential other applications in a
number of broader markets.  As announced on 26 March 2007, EnGen was the first
company to meet the criteria for GenXL investment.  GenXL took an initial 45%
equity stake in EnGen, which has now been diluted to 27% after this additional
funding.

The competitive cost and significant performance advantages of EnGen's platform
technology have now been validated, and it is ready for commercial deployment in
ultracapacitors within 3-6 months and in lithium-ion batteries within 9-12
months.  Negotiations with a number of potential partners are underway,
including with the market leader that has validated the technology.  EnGen's
materials are eco-friendly and add no incremental safety or environmental
concerns to existing technology.  Furthermore, in addition to seven patents
already filed, EnGen plans to file multiple patents related to lithium based
primary and secondary batteries over the next year.

Potential applications for the EnGen platform technology in a number of broader
markets have also shown encouraging indications and are now being further
researched.  These include battery electrodes (US$15 billion market), cold
cathode lighting (US$4 billion market), electro-optical devices (US$24.5 billion
market) and electrochromic flat glass or smart windows (US$61.5 billion market)
(Note - these numbers are from industry sources).  While any commercialisation
would be at least 9-12 months away in these cases, EnGen would have a very
attractive mix of performance, cost and environmental advantages over existing
players if the initial indications are confirmed.

The additional US$1 million received by EnGen will be used to continue
developing its technology and pursue commercial opportunities with strategic
partners.  The attributes of EnGen's technology mean that it can be delivered as
a component or a system or a product or service, so that potential competitors
can actually become partners.  This broadens the commercialisation opportunities
and is expected to significantly shorten the potential time-to-market for
products using EnGen's technology.  In this regard, EnGen is currently
anticipating its initial revenues from licensing fees and royalties before the
end of 2008.

Dr John Scott, CEO of XL TechGroup, said: 'This validation and additional
funding is a strong endorsement of the technology that EnGen is developing as a
solution to a number of identified unmet market needs.  It is also positive that
the technology is showing encouraging indications for use in a wider range of
significant target markets than first envisaged, thereby increasing EnGen's
potential value even more.  Further developments from the range of opportunities
that GenXL has been reviewing are anticipated before the end of the year.'


                                    - Ends -

For further information:
XL TechGroup Inc.
John Scott / Harold Gubnitsky                               Tel: +1 321 409 7403
[email protected]
Chris Munden, Director of Investor Relations           Tel: +44 (0) 20 7398 7720
[email protected]                                             www.xltechgroup.com

Nomura Code Securities
Richard Potts, Corporate Finance                       Tel: +44 (0) 20 7776 1200
                                                              www.nomuracode.com

XL TechGroup media enquiries:
Abchurch Communications
Heather Salmond / Gareth Mead                          Tel: +44 (0) 20 7398 7700
[email protected]                        www.abchurch-group.com


NOTES TO EDITORS

About XL TechGroup

XL TechGroup is in the business of significant value creation.  Working with
major international corporate and technology partners such as AES, Procter &
Gamble and leading universities, XL TechGroup first identifies global unmet
market needs and then targets and exploits these by the systematic creation of
successful, disruptive technology businesses.  These new companies are built
from scratch, and are then managed, developed and funded by XL TechGroup through
to the point of a trade sale or a stock market listing.

XL TechGroup's unique and proven methodology selects the best opportunities in
order to create one-to-two new companies annually, where each company is
expected to achieve a realisable valuation of at least US$400 million within
four years from its creation.  While an XL TechGroup company might perform a
stock market listing at an earlier point in this four year timeframe, XL
TechGroup would retain a controlling interest and would continue to assist with
the company's development.  It is XL TechGroup's aim to deliver significant
shareholder distributions at the final exit from each company.

XL TechGroup's companies to date are:

•    AgCert International plc (LSE: AGC, www.agcert.com)

•    TyraTech Inc. (AIM: TYR, www.tyratech.com)

•    DxTech LLC (www.dxtech.com)

•    PetroAlgae LLC (www.petroalgae.com)
     
•    QuoNova LLC (www.quonova.com)

XL TechGroup has also established GenXL LLC as a joint venture to capture the
value of those prospects that do not fully meet XL TechGroup's US$400 million,
four year criteria but still demonstrate considerable potential worth.  Over and
above XL TechGroup's core business model, GenXL is reviewing a significant flow
of opportunities from both XL TechGroup and GEN3 in order to generate new
companies, standalone product lines and technology licensing opportunities or an
appropriate mix of these.

For further information, see www.xltechgroup.com.


                      This information is provided by RNS
            The company news service from the London Stock Exchange                                                                                                                                                                                                                                  

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