AJX 0.00% 1.2¢ alexium international group limited

Already mentioned by fellow posters recently but it would be a...

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    Already mentioned by fellow posters recently but it would be a big plus if NF is successful

    Alexiflam NF – testing done and searching for licensing deals
    Alexiflam  NF  is  the  company’s  chemistry  for  application  to  Flame  Retardant  Cotton.  
    With  this  market cUS $15-200m in the US alone, there could be a significant opportunity for the company to displace the incumbent producer, Proban (owned by Solvay).
    Nonetheless, attacking market share can be time consuming, costly and damaging for profitability and the growing brand. Management  pleasingly  noted  that  they  have  been  in  deep  negotiations  with  three
    potential licensors of the product. We like the licensing approach as it:•Provides a faster source of revenue;
    • Leverage off licensors existing customer base, expanding take up and leverages off the brand
    of the licensor;  
    • Avoids the cost of market disruption in a fight to take share; and
    • Has a more positive impact on cash flows than own product roll
    -out.
    These have now passed the Industrial Laundering tests, which means the Alexiflam NF
    chemistry will remain on a garment for 100+ washes, at 65c degrees and with industrial detergents. This is far in  excess  of  a normal  household  requirement  and  feedback  with  the  three  customers  has  been  
    exceptionally  positive.  Management  had  previously  guided  to  a  H118  roll-out,  and  this  appears  to  
    be on track.

    I assume H118 is first half of 2018!
 
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