"We’ll also throw in the Perth based innovator in flame-retardant (FR) materials, which is targeting the US military complex in relation to uniforms treated with its non-toxic brew that changes the surface properties of materials.
But Alexium’s recent revenue traction stems from its involvement in a ‘softer’ market: comfy mattresses and pillows.As with so many tech juniors, Alexium’s progress has been a slow burn (pardon the pun) since the stock back door listed in 2010 at 20c apiece.Originally, investor excitement centred on Alexium’s ambition to supply the US military with uniform retardant.
“Progress is always slow to break into the defence sector unless there is an immediate unmet need ,’’ says Alexium chairman Gavin Rezos.. “The reason is the size and value of the orders and the supply chain changes warrant extensive testing to ensure best product, cost effectiveness and robust supply chain."
In the meantime, Alexium has targeted a number of industrial markets, including a deal with an unnamed large mattresses maker.There’s nothing new about FR treatments. The trouble is, most of them are based on highly toxic bromides, blamed for illnesses including thyroid cancer and memory loss. They’ve been banned (or are the process of being outlawed) in most western countries.
Alexium recently reported record shipments of Alexicool in the month of June of 90,000 pounds, more than five times the run rate in January. Alexium cites the FR market as a $US7bn global opportunity. Other applications include transportation (such as aircraft seats), decorative fabrics and outdoor fabrics. Another is fireproofing electric components, such as circuit boards.
Another use is coating technology for building materials, including cladding. If anyone doubts the potential there, look no further than London’s cladding-related Grenfell Tower fire that killed at least 79 people.
In the meantime, Alexium maintains the US military market is a “strong focus”, especially given President Trump’s intent to boost the number of battle-ready troops.Rezos says the US Department of Defence is after a more cost effective and non-toxic retardant on nylon-cotton uniforms to replace the existing cotton-rayon garb, for use by all staff rather than just combat troops.
Alexium has been working with Natick (the US Army Research Center) and the US Marines, along with a prime contractor that currently supplies the uniforms.
Testing to date shows Alexium’s FR meets their standards and is cost effective.
Rezos says: “once we sell to US Army and US Marines, the other US armed forces and 22 other militaries (such as NATO) will be able to buy without the need for the same level of testing.”
In the March quarter, Alexium reported revenue of $6.47m, cash outgoings of $5.36m and a cash balance of $6.4m.
The June quarter report, due out next week, should show the company in a cash-flow neutral position (on a run-rate basis).
While Alexium shares have rebounded from their May low of 47c after the June update, investors in the main have been snoozing. But if the company gets its intended Nasdaq listing away, a wider audience might take a different view."
I said a few months ago I'd be surprised if the NASDAQ listing happened mid year as announced, the Ann a few days ago said this about the listing.
"Alexium has a planned Level 2 ADR NASDAQ Listing underway including US accounting and audit processes and SEC reviews. The final timing of the move from NASDAQ Designate to trading on NASDAQ as a Level 2 ADR will be determined by Alexium based on our US Broker’s advice on market conditions for an optimum result."
That's very similar to what was emailed to me and I posted it about the NYSE listing ages ago, in other words it's now not up to us but we are taking advice on the listing time yet again.
"Listing process is fine. Filing done, and we will list sole on the advice of Cowen when it is best for the company and markets don’t effect us in a bad way."
So as far as I can tell the now NASDAQ listing will proceed on advice.
I think an update on this process is in order with NC's departure as he was taking care of this process, the NYSE listing just faded away without (from memory) any update that it was no longer on the cards, hopefully the NASDAQ listing doesn't suffer the same fate.
