Alexium International Group Limited (ASX: AJX) (OTCQX: AXXIY)
Highlights:New client represents at least $150,000 in revenue per month upon full transition to Alexium chemistry in third quarter. Production to commence with new customer with seven-year cycle. Custom formulation for client's fabric will be used on tents for the United Nations.
Alexium International Group Limited ("Alexium," "the Company") (ASX: AJX) (OTCQX: AXXIY) announced that a new agreement was reached today with a textile finisher and major supplier of tents internationally for a production order of Alexium's proprietary environmentally-friendly flame retardant chemistry. Purchase orders have already been received and production will commence with this new client, and once the full transition to Alexium chemistry is complete, the expected life cycle for production is seven years with ongoing monthly revenue of at least $150,000 (depending on fluctuating demand).
This new customer relationship is the result of a six-month collaborative effort between Alexium and the new customer, a supplier of tents to the United Nations for humanitarian efforts. After significant research and development, Alexium produced a customized, environmentally friendly chemical solution for the client's natural fiber tent fabric that meets flame retardant specifications and passes stringent durability tests. All field trials have been completed successfully in all areas.
"We are very pleased with the continued growth of our portfolio," said Michael Schwartz, Vice President of Sales. "This partnership with this supplier of tents to the United Nations is in keeping with our mission to provide safe, environmentally friendly products to consumers and businesses on a global basis."
This new business is also significant because while Alexium's initial products were developed primarily for synthetic fibers, this is Alexium's first client supplying 100% cotton goods, a market segment that has not seen significant innovation in decades. In addition, this new client addition furthers Alexium's expansion into innovative chemistries for outdoor fabrics and increases the visibility of the Company in that sector. This new business is in addition to ongoing efforts in outdoor fabrics with longtime Alexium partner, iTextiles, also a major global supplier of tent fabrics.
"The size of this customer relationship, although smaller than others in the portfolio, represents long term, sustainable revenue for Alexium," said Dirk Van Hyning, President. "We are on growth trajectory for an end of year ramp-up and are confident in our goals for calendar year 2016."
Alexium International Group Limited (ASX: AJX) (AX: AJX) (OTCQX: AXXIY) holds proprietary patent applications for a process developed initially by the U.S. Department of Defense, which allows for the surface modification and attachment of nano-particles or multiple chemical functional groups to surfaces or substrates to provide functions such as fire retardancy, water proofing, oil proofing, and anti-microbial treatments. Applications under development include but are not limited to textiles, paints, and packaging, glass and building materials. Alexium's fire retardant chemical treatments are currently marketed for different fabric markets under the Alexiflam, Ascalon, Nycolon, Nuvalon, and Polytron, Omnitron and Bactron trademarks. For additional information about Alexium, please visit www.alexiuminternational.com.