On 24th April 2019, Alexium International Group Limited (ASX: AJX) announced that it has received the US Environmental Protection Agency (EPA) approval for Alexiflam® NF under the US Toxic Substances Control Act (TSCA). TSCA is the regulator of the new chemical products in the US. The signoff will enable AJX to produce and sell Alexiflam® NF in the US. It is to be noted that US is about 50% of the global market (flame-retardant). This has opened up the opportunity to access the largest market region for flame retardant cotton. It has also signed Memorandum of Understanding with ICL which will help the company for the future manufacture, marketing and sales of Alexiflam® NF.
Memorandum of Understanding (MoU) details:
On 4th April 2019, the company announced that it has signed MoU with ICL for future marketing, sales, and potential manufacture of Alexiflam® NF by ICL. ICL is a global speciality minerals and chemicals company which caters to agriculture and industrial markets. Under the MoU Alexium will retain the rights to sell Alexiflam® NF into defined markets while ICIL being granted sole global marketing and sales rights for the Alexium® NF.
Alexiflam® NF is used for the flame-retardant for cotton and cotton-blend that has decreased processing costs vs other established flame-retardant cotton methods. It has enhanced flame-retardant properties and provides improved environmental and health profiles. Some of the other benefits of Alexiflam® NF are;
- It requires no ammonization chamber which makes the production process simpler
- It is used in work-wear, apparel and upholstery
- It is essentially formaldehyde free
After the approval for Alexiflam® NF received under TSCA, EPA successfully completed a risk assessment of the hazards related to the manufacturing, processing, and use of Alexiflam® NF. The assessment of Alexiflam® NF was more rigorous due to the new standard updated by the Lautenberg Chemical Safety Act. Based on the provisions of the approvals, the company can increase the volume according to its sales target for military and industrial application in the US.
The company’s CEO, Dr. Bob Brookins stated that this EPA approval is a major achievement for the company and will support the company’s manufacturing and sales in the US. This approval is based on the recently signed MoU with ICL for it to manufacture and distribute to Alexiflam® NF in future. The company is well placed for the voluminous production of Alexiflam® NF to tap the international opportunities for the company’s unique textile technology.
On 26th March 2019, the company announced that it has signed a development agreement with PineBelt Processing.
The market capitalisation of the company is A$55.27 million. The 52-week high and low of the stock is A$0.200 and A$0.096 respectively. The stock is up by 3.125% and trading at A$0.165 on ASX (as at Friday 26 April, AEST: 12:05PM). In the last six months, the stock has delivered a return of 33.33% while YTD return stands at 45.45%.
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