First Global Domestic XFilter Licensing Agreement

RNS Number : 7122O

Xeros Technology Group plc

14 June 2022

 

14 June 2022 

This announcement contains inside information

Xeros Technology Group plc

('Xeros' or the 'Company' or the 'Group')

First Global Domestic XFilter Licensing Agreement

Xeros Technology Group plc (AIM: XSG), the creator of technologies that reduce the impact of clothing on the planet, is pleased to announce the signature of a licensing agreement for its XFilter filtration technology with Hanning Elektro-Werke Gmbh & Co.KG. ('Hanning').

Hanning, headquartered in Oerlinghausen, Germany is a world leading manufacturer of components for the appliance industry, including pumps and motors for some of the world's largest domestic washing machine manufacturers.  In 2020, 24.2 million automatic domestic washing machines were sold across Europe and 95.7 million were sold worldwide[i]. Hanning components are incorporated in the washing machines of some of the world's leading brands and therefore this agreement is transformational for Xeros. It has the potential to deliver significant revenues from late 2023 onwards.

Under the terms of the 10-year, non-exclusive agreement, Hanning will manufacture and sell filters incorporating Xeros' proprietary XFilter technology. This will enable washing machine manufacturers to provide consumers with the ability to capture and easily and safely dispose of over 90% of microfibres, including microplastics, released during laundry cycles. The filters are built into the washing machine and are designed to last the life of a machine.

Hanning is establishing a production line to meet demand from their customers ahead of new legislation in France requiring the fitting of microfibre filters in all domestic washing machines by 1 January 2025. Similar legislation is in development in the UK. Xeros is already working alongside Hanning on the integration of XFilter within the washing machines of a number of their existing customers.

Under the terms of the agreement Xeros will receive a royalty per filter device sold by Hanning. The royalty amount is commercially sensitive, but Xeros can confirm that the commercial terms of the agreement are in line with the Board's expectations and, as previously communicated, Xeros expects to begin receiving royalty revenues from Hanning in late 2023.

In addition, Xeros continues to make progress under the XFilter development agreement previously announced with a large, Asian-based washing machine OEM.

Klaas de Boer, Chairman of Xeros, said:

"The ambition we have been working towards is for Xeros' XFilter technology to establish the de facto standard for legislators and to be the device of choice for all washing machine manufacturers. Our solution is designed to be the most efficient, most reliable, most durable and the easiest to use. This agreement with Hanning is testament to the fact that our solution achieves these objectives. Hanning's customers are now working with us and Hanning for incorporation into their machines.

"Doing so enables them to meet the legislation in France with the expectation that filtration will be mandated across the EU and in the UK.

"Through their adoption of this technology, the washing machine industry will radically reduce the largest source of primary microplastic pollution which is from washing our clothes at home."

Enquiries :

Xeros Technology Group plc Mark Nichols, Chief Executive Officer Paul Denney, Chief Financial Officer	Tel: [phone]
finnCap Limited  (Nominated Adviser and Broker) Julian Blunt/Teddy Whiley, Corporate Finance Andrew Burdis/Sunila de Silva, ECM Yellow Jersey PR Sarah Hollins/Lilian Filips/Laurie Gellhorn	Tel: [phone] Tel: [phone]

Notes to Editors

POWERED BY SCIENCE, XEROS CREATE TECHNOLOGIES ENGINEERED FOR THE FUTURE

Born out of textile research and advancing new standards of performance and responsibility, Xeros' technologies revolutionise the way we make and clean our clothes, conserving water and preventing waste. Designed to impact industries and people on a global scale, Xeros transforms the performance, impact and economics of the fashion and washing machine industry. 

Xeros enables the scaling of its innovations and impact by licencing its intellectual property to partners across the globe. Their work has, to date, created 38 patent families.

Xeros' technologies are already in use in major global industries, including commercial and home laundry and garment manufacture. So far, these technologies have saved millions of litres of water and could prevent billions of microfibres from ending in our oceans.

TO THE POWER OF CHANGE  

xerostech.com

About Hanning

HANNING ELEKTRO-WERKE GmbH & Co. KG has more than 70 years of experience and expertise gained as a global specialist for customer-specific drive systems and components. Its product line ranges from AC and three-phase motors, linear actuators, frequency inverters and fan drives through to drain and circulation pumps. They develop and produce customized drive solutions worldwide based on the slogan "moving ideas".

www.hanning-hew.com

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[i] Source: Euromonitor

 

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