Alexium International Group Limited · ASX:AJX
Alexium International — Investor Presentation (November 2019)
14 slides from Alexium International's investor presentation, Nov 27, 2019
Slide 1: Fully Committed $22.3M Capital Raise
Fully Committed $22.3M Capital Raise 27 November 2019 1
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer This presentation has been prepared by Alexium International (AJX) and has been prepared in relation to AJX conducting a placement to institutional and sophisticated investors (Placement) and a non-renounceable pro rata entitlement offer of new shares in AJX (Entitlem
Slide 3: Contents
Contents 1. Overview 2. Strategic Pathway for Long Term Growth 3. Sources and Use of Funds 4. Details of Entitlement Offer 5. Timetable 6. Key Risks 3
Slide 4: Overview of capital raising
Overview of capital raising Fully committed capital raising of A$22.3 million to repay existing expensive debt facility and support the company’s transition to a high growth performance chemicals company Strong support from existing and new • Fully funded capital raise demonstrates strong support fr
Slide 5: Capital raising rationale
Capital raising rationale The Board and management team view this transaction as an inflection point in Alexium’s long term journey The Company’s current capital structure does not support long-term growth • Current mezzanine debt is very expensive with interest payments of AUD 145k per month • Near
Slide 6: Clearly defined pathway to deliver shareholder value
Clearly defined pathway to deliver shareholder value FY11 – FY18 FY19 FY20 FY21 FY22 Invest in world leading Foundation for Commercialize Accelerate Deliver R&D Growth world leading revenue growth meaningful technologies shareholder returns >US$25m invested New management team o Commercialize an
Slide 7: Sources and Uses of Funds
Sources and Uses of Funds Capital raising to fully retire the current debt facility and provide working capital to support long term growth Debt reduction The Company intends to use the net proceeds from the $22.3m proceeds to retire, in full, the current debt facility (US$9m) . This will also elimi
Slide 8: Details of the Entitlement Offer
Details of the Entitlement Offer Offer structure and size • 2 for 5 pro-rata accelerated non-renounceable entitlement offer to eligible shareholders of Alexium to raise total proceeds of approximately $8.3 million Underwriting arrangements • The Entitlement Offer is fully underwritten via underwriti
Slide 9: Indicative Timetable
Indicative Timetable Activity Date Lodgement of Prospectus with the ASIC 27 November 2019 Lodgement of Prospectus & Appendix 3B with ASX 27 November 2019 Notice sent to Optionholders 27 November 2019 Notice sent to Shareholders 28 November 2019 Ex date 29 November 2019 Record Date for determining En
Slide 10: Key Risks
Key Risks Topic Summary Introduction The Shares offered under this Prospectus should be considered speculative because of the nature of the Company’s business. There are numerous risk factors involved with the Company’s business. Some of these risks can be mitigated by the use of safeguards and appr
Slide 11: Key Risks
Key Risks Topic Summary Company Specific (c) Ability to source chemicals The Company’s core business, being the deployment of chemical solutions, requires the Company to source various chemicals. If the Company is unable to continually source such chemicals, it may adversely impact the Company’s abi
Slide 12: Key Risks
Key Risks Topic Summary Company Specific (h) Competition risk We face significant competition from major international producers as well as smaller regional competitors. Our most significant competitors include major chemicals and materials manufacturers and diversified companies, a number of which
Slide 13: Key Risks
Key Risks Topic Summary Company Specific (k) Infringing the intellectual property rights of third parties Although it is our intention to avoid infringing or otherwise violating the intellectual property rights of others, our processes and products may infringe or otherwise violate the intellectual
Slide 14: Key Risks
Key Risks Topic Summary General risks (c) Market conditions Share market conditions may affect the value of the Company’s quoted securities regardless of the Company’s operating performance. Share market conditions are affected by many factors such as: (i) general economic outlook; (ii) introduction
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