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Alexium International Group Limited (ASX:AJX), is based out of Perth and engaged in the manufacturing and sale of specialty chemicals and solutions in Australia as well as the United States.
On March 26th, 2019, Alexium International announced to have signed a mutually exclusive Development Agreement that covers the provision of Alexiumâs proprietary FR chemistry to PineBelt Processing for the treatment and supply of nylon/cotton garments for military applications. The agreement entails the provision of samples, pricing, testing and the timetable for delivery of Alexium treated uniforms by PineBelt Processing to the US military for limited user evaluation.
It is a significant milestone marking the progress from months of product development and rigorous testing in the laboratory towards large scale deployment.
As of now, Alexium is working with PineBelt Processing to comply with their production requirements and to prepare the required uniforms. After the closure of the development agreement, the two parties will implement a Supply Agreement for the final commercialised process and treatment.
Alexium International also released the 2019 Gabelli & Company Specialty Chemicals Conference Presentation during mid of March, highlighting the business overview, products and markets, financial analysis and management Bios. The companyâs current market valuation stands at around $ 38 million with the investor mix comprising a majority of retail and high net worth investors (76%). Some of its product offerings include flame retardant (FR) treatments like Alexiflam FR, Alexiflam NF Alexicool, as well as a phase change materials (PCM) for clients in the defence industry, consumer applications like automotive and transportation, outdoor fabrics, bedding applications and others.
As per the figures posted, the global chemical markets for FR and PCM reaches around USD 9.0 billion and USD 1 billion per year respectively.
The financial results for the half-year ended December 31st, 2019 (H1 FY2019), suggest that sales of Alexicool® products have been the primary source of revenue for the Company. In January 2019, Alexium leveraged its PCM technology with the launch of Alexicool® FM designed particularly for foam-based bedding. Besides, the company also strengthened its leadership team with new additions that brought the specialty chemicals skills and experience needed to realise the prevalent opportunities.
For the first half of FY2019, the revenue from ordinary activities was down 77% to USD 1.55 million. The net loss for the period attributable to members increased by 102% to USD 3.23 million mainly due to loss of a PCM customer due to product differentiation confusion. Besides, the operating expenses were down by USD 354K, reflecting a 10% reduction over the prior corresponding period (PCP) ended December 31st, 2017. During the period, the Group experienced increased employee expenses of USD 225K related to the realignment of the management team. At the end of the half-year, the net cash and cash equivalents stood at USD 6.01 million.
To date, Alexium has a market valuation of around AUD 38 million with ~ 345.44 million outstanding shares. On March 26th, the AJX stock price closed the market trading at AUD 0.130, shooting up by 18.18% or AUD 0.020 with ~ 1.23 million shares traded.
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