New Shareholder Email

Dear Shareholders,



Alexium’s success in flame retardant applications has led to adjacent opportunities in markets such as phase change materials (PCMs) for thermal regulation. As we are now seeing success in our Alexicool product line, this has led to additional adjacent opportunities that allow us to broaden our technology platform further.



“INVISIBLE” PHASE CHANGE MATERIAL



Building on our success with PCM applications on pillows and bedding, we have identified an opportunity to expand the use of PCMs on color fabric where standard PCMs cannot be used historically. This limitation is due to a “ghosting” effect on the fabric. Alexium’s latest addition to the Alexicool line is invisible to the naked eye which allows it to be used on colored fabric. This opens up a wide range of markets that can integrate PCMs with non-white fabrics, such as upholstery, denim, workwear and fashion fabrics. Alexium is already working with a major supplier of retail apparel fabrics to incorporate our invisible Alexicool product into its offering, another sign of Alexium’s extremely strong reputation and growing presence in the marketplace.



DURABLE MOISTURE AND THERMAL MANAGEMENT



Alexium’s Alexicool product line works by using a proprietary chemistry which absorbs heat. There has been a different class of chemistry which has been used for years to achieve a similar effect but by a different mechanism – by wicking moisture away from the body. Over the first six months of launching Alexicool into various markets, a clear market gap was identified. A wide range of markets, particularly in apparel (under- and outer-wear) would love to use both chemistries to achieve maximum cooling in their products; however, those two technologies have never been integrated into a single durable application. Alexium has developed a first-of-its-kind product where we can now offer both heat-absorbing AND moisture-wicking functionality into the same highly-wash-durable application. This new product will allow Alexium to quickly address the massive apparel markets which are desperate for exactly this technology.



These two new products are quickly evolving, and we will continue to update you all as they progress. Look out for videos which demonstrate and further explain Alexium’s clear advantage in the thermal regulation market in the near future.



Regards,


Dirk L. Van Hyning, Ph.D.