Business
Commercial update and fundraising plans
Commercial update and fundraising plans.
About this update from Xeros Technology Group Plc
[{"type":"text","content":"\n \nRNS Number : 9444I Xeros Technology Group plc 14 August 2019 \n\n14 August 2019 \n \nXeros Technology Group plc\n \nCommercial update and fundraising plans\n \nXeros Technology Group plc (AIM: XSG, 'Xeros', 'the Group'), the developer and provider of water saving and filtration technologies with multiple commercial applications, today provides an update on its commercial activities and fundraising plans.\n \nHighlights:\no Significant commercial progress year to date across all markets with further progress expected during the rest of the year.\no Planned exit from all direct sales business by the end of 2019.\no On course to have a pure-play licensing organisation in place by end 2019 with a Q1 2020 monthly cash burn run rate of £0.6m. Down from an average monthly cash burn of £2.2m in 2018.\no Group announces today it is seeking to raise between £5m and £10m of equity funding. Raising £10m is expected to fund the business through to cash breakeven.\n \nMark Nichols, Chief Executive of Xeros, said:\n \n\"The business case for our technologies continues to increase as the scarcity and pricing of water rises with consumption progressively outstripping availability in many parts of the world. \n \n\"With our technologies now proven and much simplified, following the introduction of the XDrumTM, global scale OEMs are now licensing or testing our products with a view to long term licensing. \n \n\"It has been a challenging journey to this point, given the maturity and size of the industry players we have to convince to adopt our technology. However, we have now reached an inflection point in the implementation of our strategy to become an asset light IP rich licensing business.\n \n\"Our focus for the rest of the year is to complete our exit from all direct sales businesses, win further licensing contracts and implement those already awarded. Our cost base has and will continue to move down to that required for a successful high margin licensing business. \n \n\"Switching to high margin licensing turnover over the next two years against a backdrop of a low-cost licensing organisation provides us with a line of sight to cash breakeven.\"\n \n \nTransition to licensing business...