REG - Xeros Tech Grp plc - Filtration Licence Agreement with Donlim Group

Xeros TechnologyAnnouncement

05/09/2024 07:00

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RNS Number : 9594C  Xeros Technology Group plc  05 September 2024

This announcement contains inside information as stipulated under the market
abuse regulation no. 596/2014 (as incorporated into UK law by virtue of the
European Union (Withdrawal) Act 2018, as amended by virtue of the Market Abuse
(Amendment) (EU Exit) Regulations 2019). Upon the publication of this
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now considered to be in the public domain.

 

5 September 2024

Xeros Technology Group plc

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

 

Filtration Licence Agreement with Donlim Group

 

Xeros Technology Group plc (AIM: XSG), the creator of technologies that reduce
the impact of clothing on the planet, today announces the signing of a
contract with Donlim Group ("Donlim") to manufacture its XF3 External Filter
under licence. It has also entered a strategic partnership agreement with
Donlim, combining the expertise of each party to maximise marketing and
distribution and, in addition, to work together on further product
development.

 

Donlim will also receive a licence to manufacture and distribute the XF1,
which is the internal filter for domestic washing machines. This will take the
total number of licensees for XF1 to four. The XF1 currently has three
licences with European manufacturers.

 

Donlim, the owner of the Morphy Richards brand, is a world-leading
manufacturer of electrical appliances, employing over 26,000 people and
generating revenues in excess of US$2bn from three manufacturing sites across
China and Indonesia.

 

Under the strategic partnership agreement, marketing of the XF3 will be done
jointly bringing together the expertise and industry contacts of the two
businesses. Xeros will support Donlim to generate sales leads to maximise
interest in the products, with mass production targeted for Q2 FY25. Donlim
will pay Xeros a licence fee for every unit sold.

 

The strategic partnership further enables Donlim and Xeros to collaborate on
the future development of innovative filtration & water saving products.

 

Donlim has world leading expertise in manufacturing small domestic appliances
and R&D, working with many leading global brands. Xeros has unique and
substantive expertise in microplastic filtration, IP and prototyping, as well
as connections to the Major Domestic Appliance market. Together, Donlim and
Xeros have relationships with most of the leading global electrical product
brands.

 

Neil Austin, CEO of Xeros, said:

 

"We are delighted to announce this strategic partnership and contract with
Donlim. It forms a key part of our commercialisation plan and, whilst we are
hugely excited by the wider possibilities for our collaboration, in the
short-term we will focus solely on helping Donlim bring XF3 to market
successfully.

 

"Accessory sales of external microfibre-capture devices for domestic washing
machines are forecast to be significant in Europe in the next few years, and
XF3 is the perfect plug and play solution to meet this demand. Working with
Donlim not only enables scaled production but allows us to work together to
promote wider industry take up."

 

Lydia Zhu, Donlim Sales Vice President, added:

 

"We are excited to be working with Xeros to manufacture and market the XF3,
which we see as an entry point into further innovative, green technologies.
Our agreement brings together the expertise of two leading businesses. Xeros'
unique and substantive expertise in microplastic filtration IP, prototyping,
and scientific capability in developing innovative, green technology, fits
perfectly with Donlim's ambition to bring new energy and water efficient
products to market."

 

Further background

 

Consumer awareness of the impact of microplastics in the sea is becoming
increasingly widespread and a survey, undertaken by Xeros, demonstrates that
there is latent demand for a filtration solution. 79% of those surveyed were
concerned or very concerned by the impact of microplastics with 69% stating
that they would consider purchasing if a product was available. Industry
interest is also growing, alongside governmental focus on regulating around
microplastics from domestic and commercial laundry.

 

XF3 is a retro-fitted, 'outside-of-machine' microplastic, filtration device
with full flexibility of placement for domestic washing machines. The product
was the subject of overwhelming interest at its launch at IFA Berlin, Europe's
largest consumer electronics show, in September last year.  The XF3 has all
the features of Xeros' integrated washing machine filter, the XF1, with a
market-leading microfibre capture rate of 99%, one of the lowest emptying
frequencies of all available filters, and no requirement for replacement
cartridges.

 

Enquiries

 

 Xeros Technology Group plc                                        Tel: 0114 269 9656

 Neil Austin, Chief Executive Officer

 Alex Tristram, Finance Director

 Cavendish Capital Markets Limited (Nominated Adviser and Broker)  Tel: 020 7220 0500

 Julian Blunt/Teddy Whiley, Corporate Finance

 Andrew Burdis/Sunila de Silva, ECM

 Rawlings Financial PR Limited                                     Tel: 07715 769078

 Cat Valentine

 

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 eight
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.

 

 

 

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