AJX Fundamentals thread, page-20

My understanding of the business model is that Alexium has little need to maintain inventory. When a purchase order comes in management simply organises delivery of raw materials from their chemical supplier to the appropriately located toll manufacturer. Hence there is little need for capital to be tied up as inventory.

It is a very flexible, resource light and capital light model that is very unusual for the chemical industry with its lack of need for a dedicated manufacturing plant. It allows for rapid growth into different product lines without requirement for capital raisings and equity dilution. I daren’t suggest who should be given credit for it.