Today published the following CEO Update Letter for shareholders.
To Our Fellow Shareholders:
We are writing to you today to share some of the many strategic developments and milestones our team has accomplished over the past few months highlighted by nearing commercialization of our Deposition Water Harvesting™ (DWH™) Technology.
I must first start by thanking each of you for your continued support and patience while our team worked diligently to transform the business and re-positioned it to capitalize on the tremendous value of our proprietary technologies. For almost a year now, during our self-imposed “blackout” period, our core team, augmented by the addition of several very talented and experienced business leaders, engineers and financial management professionals, have worked to ensure we have the solid organizational structure, production capability and supply lines, necessary for us to advance the business. Today, I am proud to say that we have largely accomplished every goal we set for ourselves as I will now elaborate on.
Over the past few months, our team has been focused on supporting the needs of our two principal businesses – moving into full-scale production of our proprietary Eternal Spring™ Deposition Water Harvesting™ (DWH™) technology and supporting the further development and delivery of Healixa Healthcare’s AdvocateCare™ patient-centric healthcare platform.
Eternal Spring™ II Goes into Commercial Production
Following extensive testing, including in-the-field trails of our Eternal Spring™ DWH technology, our engineers have radically redesigned the entire platform. Today, we believe that our Eternal Spring™ II (“ES II”) is amongst the world’s most efficient, cost effective and sustainable ways to generate ultra-pure water from the atmosphere, and most importantly, have created a more efficient manufacturing capacity and supply chain able to support its sale and distribution. As evidence of this, we now expect initial unit deliveries to select commercial customers and partners during our fourth quarter. Additionally, we have also laid the foundation of a robust sales, distribution and support network as well. Central to this effort, we are now currently onboarding a new commercial distribution partner for the ES II having secured a relationship with one of the largest plumbing and HVAC organizations of its kind, based in Pheonix Arizona, who currently serves 40,000+ commercial and residential customers. Relationships with partners like this, especially in water-scarce regions such as the US Southwest, will be critical to helping us reach both commercial and residential customers who are increasingly facing difficult and costly choices when seeking access to clean water. Furthermore, through a newly secured commercial leasing program with a division of a national bank, we have created an economical way for select customers to conveniently and economically improve their access to clean, fresh water with zero upfront costs while allowing Healixa to secure the funding required to accelerate our commercial production. We are very excited about this unique financing relationship and believe it has the potential to be the catalyst that allows us to dramatically and quickly scale up sales and production of the ES II.
Active Cooling – Vastly Expanding the Opportunity for Our Technology Beyond Water
One of the more interesting learning outcomes of the ES II re-engineering process was the applicability of the technology in other very large and rapidly growing market opportunities. One such market – providing economical cooling for data centers and computer server “farms” such as those used in Artificial Intelligence (“AI”) data collection and mining – is especially exciting because of its size and role in the future of society. Fundamental to our DWH™ technology is a process that mimics how ice forms at the Earth’s North and South poles, where water vapor changes from a gas directly to a solid (frost) which we use to collect ultra-pure water. That has led us to a simultaneous and highly synergistic product development program based upon this core technology. To that end, we have recently executed an agreement with one of the largest, U.S.-based publicly traded organizations involved with data mining who is collaborating with us on our new cooling solution for their initial use under a pilot program. Once this program is completed, and should it be as successful as early indications suggest (results indicate a significant reduction in cooling costs vs. existing HVAC systems and technologies), together we will seek broad marketing and sales of this technology throughout the data mining industry.
Advancing Patient-Centric Care and Improving the Business of Healthcare with AdvocateCare™
Away from our water business, progress continues to be made at Healixa healthcare subsidiary (“AdvocateCare™”). Under new leadership and a renewed focus on its mission to improve the business of healthcare, our healthcare business continues to secure new customers and made notable advancements in the capabilities of our AdvocateCare™ platform to ensure it continues to deliver on its mission to provide patients with broader access to care while supporting better outcomes. As we stand here today, AdvocateCare™ is continuing to contribute positively to the Company, generating both meaningful revenue and cashflow. Through new contracts, such as one recently received by a national wound care organization, we believe that AdvocateCare™ will continue to contribute positively to the business in the months and years ahead.
Capital Markets Strategy – Unlocking the Value of Our Companies for Our Shareholder
A critical focus of our team over the past year has been how to best protect and unlock the value we see in our operating companies to the benefit of all shareholders. As part of this effort, management and our Board of Directors have been working to explore several options which we believe have the potential to not only unlock that valuable but to increase awareness of Healixa with retail and institutional investors, particularly in international markets in Europe. As such, we are in the final stages of a process to potentially securing a listing onto one of the world’s largest international exchanges after the Nasdaq and NYSE. We believe that this transaction, should it be completed, will play an important role in helping us realize the value of Healixa’s assets by facilitating new investment from European investors in major financial centers in England, France, Germany, Switzerland and from Asia while supporting an improved balance sheet.
The Path Ahead
As I indicated earlier in this update letter, our team has been very busy executing against several strategic efforts, all of which are designed to position our company to capitalize on the significant value of our business portfolio and our unique technologies.
Over the coming months, we remain focused on continued execution across the entire business as we build upon the many notable achievements, we have already made this year.
This execution will be measured by:
- Commercial production and the sales our ES II system to select customers before the end of our fourth quarter
- Expanded sales and distribution for the ES II, through both internal and channels, as we prepare for volume production by mid-2025
- Entry into large new markets for our related cooling technology in 2025 through key industry partners
- Increased investment community engagement
Our confidence in the opportunities ahead of us is great, and increasingly, it is shared by not only every Healixa team member, but by a growing number of partners and stakeholders who also recognize the value and positive impact our technology can bring to their businesses and customers.
We are honored by your continued trust and support and believe that over the next few months, the realization of our plan for our Company will become clearer and more tangible and we hope that you will chose to join on our exciting journey.
Sincerely,
Ian Parker
Chairman and Chief Executive Officer
About Healixa, Inc.
Healixa is a technology company focusing on building and acquiring innovative and disruptive technologies in the clean water generation, health-tech, and green-tech industries. Healixa embraces innovation by combining its intellectual properties, patents, strategic collaborations, and partnerships to create a "LaunchPad" of disruptive sustainable products. For more information, visit www.healixa.com.
Safe Harbor Statement
Certain statements contained in this press release may constitute forward-looking statements. For example, forward-looking statements are used when discussing our expected research and development programs, and more. These forward-looking statements are based only on current expectations of management and are subject to significant risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, including but not limited to the risks and uncertainties related to the progress, timing, cost, and results of Partnerships and product development programs; difficulties or delays in obtaining regulatory approval or patent protection; and competition from other companies. Except as otherwise required by law, Healixa, Inc. undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Healixia Contact:
Bret Hedges
SVP of Strategic Partnerships
833-432-5492
Bret@healixa.com