Business
Sale of Marken Business
Sale of Marken Business.
About this update from Xeros Technology Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 7616E\n Xeros Technology Group plc\n 03 March 2020\n \n \n \n \n 3rd March 2020\n \n \n \n \n \n Xeros Technology Group plc\n \n \n \n \n \n Sale of Marken business\n \n \n \n \n \n Xeros Technology Group plc (AIM: XSG, \"the Company\", \"the Group\" or \"Xeros\"), the developer and provider of water saving and filtration technologies with multiple commercial applications, announces today that it has agreed to sell its four US Marken specialist cleaning sites. Subject to closing conditions, completion is expected to take place by the end of March (\"Completion\"). \n \n \n \n \n \n The sale of these sites completes the Company's planned transition to a licensing model whereby its intellectual property is commercialised by licensees with royalties paid to the Company. Following Completion the Company will cease to have any physical operations in the US and will have an organisation of close to 50 full time personnel dedicated to licensing. This is in line with previous guidance of less than 60 staff.\n \n \n \n \n \n The evidence, accreditations and manufacturer endorsement achieved by Xeros during its ownership of Marken has fully verified Xeros' ability to remove harmful substances and extend the life of expensive, life protecting garments. The Company intends to continue to transfer this learning and evidence to its licensees in order that they can access this valuable segment of the commercial laundry market.\n \n \n \n \n \n In 2018, the Marken US sites generated combined revenue of £858,000 and an operating loss of £1,933,000. The Marken business reported net assets of £1,897,000 at the end of 2018. Proceeds of £265,000 will be received in cash by Xeros upon Completion. These proceeds will be used to fund the Group's ongoing working capital requirements.\n \n \n \n \n \n \n Mark Nichols\n \n , Chief Executive of Xeros, said:\n \n \n \n \n \n \"We are very pleased to have reached our objective of becoming an asset light and IP rich licensing organisation. We are now working hard to execute the contracts with our license partners in India and China with evidence and learnings from these being the platform for further geographic and segmental coverage and we look forward to updating the market on our progress in the near future.\" \n \n \n ...