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Friday 21 February, 2014

Xeros Limited

Intention to Float on AIM

RNS Number : 6167A
Xeros Limited
21 February 2014

The information contained in this announcement is restricted and is not for publication, release or distribution in the United States of America, Canada, Australia, Japan or South Africa


21 February 2014

Xeros Limited

("Xeros" or the "Group")

Announcement of Intention to Float on AIM

Xeros, the innovative developer of a patented polymer bead cleaning system with multiple identified commercial applications, today announces its intention to raise funds and to apply for the admission of ordinary shares to trading on AIM (the "Admission"). Jefferies International Limited is acting for Xeros in relation to the proposed Admission. Admission to trading on AIM is expected to take place in March 2014.


Admission and the fundraising are expected to allow the Group to accelerate roll-out in commercial laundry and to fund the research and development process through to commercialisation in other identified applications, not least in domestic laundry.


History and overview of the Group's technology

The focus of the Group since incorporation in 2006 has been to develop and commercialise years of research at the University of Leeds into textile dyeing and the use of polymer beads for cleaning various substrates.


Xeros has developed a patented polymer bead cleaning system that has been shown to provide superior cleaning performance whilst significantly reducing the consumption of water, energy and chemicals throughout the cleaning process. The system is characterised by replacing the majority of the water used in an existing conventional laundry process with reusable and recyclable polymer beads. The polymer beads clean substrates through a combination of mechanical action, attracting stains to the bead surface and absorption. The Group has developed its commercial laundry machines using predominantly existing conventional washing machine technology, with modifications to introduce its polymer beads into the wash process.


The Group has filed a total of 27 patent families relating to various aspects of its polymer bead cleaning system. The core process patent covers the use of a wide range of re-usable polymer beads to clean multiple substrates including textiles, synthetic fibres, plastics, leather, metal, glass, paper, cardboard and wood in a process which requires only limited quantities of water and which is free of organic solvents.


To date, the Group has raised in excess of £15 million from investors, including IP Group, Enterprise Ventures, the Entrepreneurs Fund and Invesco. Most recently, the Group raised £10 million from new and existing investors in March 2013.


Business model and strategy

The Directors' objective is to create value through commercialising the Group's patented polymer bead cleaning technology across multiple applications. In each of the target markets, the Directors see opportunities for the Xeros bead cleaning system to create value across a number of potential revenue streams. The supply of polymer beads is at the core of each application, but there are other revenue streams from detergent formulations, machines and the provision of service and maintenance. In addition, the Directors expect that if it is possible to re-sell beads after use back into the polymer supply chain, this will provide a further revenue opportunity.


Applications and market opportunity

The Group is initially targeting the commercial laundry market in the US, the UK, Europe and China with a business model founded on an integrated equipment and service package marketed under Xeros Sbeadycare™. The first commercial installation of a Xeros washing machine was completed in the UK in July 2011 and in the US in September 2012. Currently, the Group has 30 installed/committed to be installed machines in the US, UK and EU and management estimates that approximately 120 further machine installations are expected for 2014.


In trials with customers, this polymer bead cleaning system has been shown to achieve superior cleaning performance as well as significant reductions in water, energy and chemical usages compared to conventional commercial laundry methods. The Xeros proprietary bead cleaning system can also extend garment life, as well as provide energy efficiencies that reduce the carbon footprint of the entire laundry process.


In addition to the commercial laundry market, the Group's polymer bead technology has a range of potential applications in other industries including domestic laundry, leather processing, garment finishing and metal cleaning. The Group is currently in various stages of development and preparation for commercialisation of other identified applications, the most advanced of which is domestic laundry. The Group has developed a 'beta prototype' machine that is suitable for the US domestic laundry market.


Other than in commercial laundry, the Group intends to license the production, distribution and marketing of relevant machines and detergents to partners and will look to benefit from the expertise, scale and global reach of such potential partners. In those other application areas, the Group will continue to supply its beads as a branded ingredient.


While focusing on developing its products to the point of commercialisation for commercial and domestic laundry markets, the Group has continued to invest in the research and development of core bead technology. In March 2013, the Group signed a joint co-operation agreement with BASF to develop 'Gen II' beads with enhanced performance capabilities. In addition, the Group established a facility at the University of Northampton in November 2013 to develop its bead processing system for use in the leather processing industry.


Bill Westwater, CEO of Xeros, said:

"Xeros' patented reusable and recyclable polymer bead cleaning systems offer an attractive customer proposition combining cost savings, efficiencies and superior cleaning performance. Xeros' technology has the potential to transform a number of industries globally and our planned Admission to AIM will help accelerate our roll-out in commercial laundry and fund development through to commercialisation in other identified markets. I am delighted that our major shareholders are highly supportive of our proposed listing and associated fundraising."


For further information:


Xeros Limited

via Newgate  

Bill Westwater (CEO)

Chris Hanson (Finance Director)

Jefferies International Limited

Tel: 020 7089 8000

Simon Hardy

Simon Dowker

Harry Nicholas

Newgate Communications (Financial PR)

Tel: 020 7680 6550

James Benjamin

[email protected]

Andrew Jones

Madeleine Palmstierna


Xeros Board of Directors


Bill Westwater, Chief Executive Officer

Bill joined Xeros as Chief Executive Officer in November 2008. Bill's earlier career was in international marketing (particularly China) with global corporates including P&G, Royal Dutch Shell and Hutchison Whampoa. Since 2004, Bill has held leadership positions in entrepreneurial SME's, especially in the clean-tech sector.


Chris Hanson, Finance Director

Chris joined Xeros as Finance Director in February 2012. Chris has extensive experience as a Finance Director having held that position with a number of private and listed companies. Chris qualified as a Chartered Accountant with KPMG in 1982.


Dr Steve Jenkins, Chief Scientific Officer

Steve is a polymer physicist with over 20 years of experience in new product R&D. He joined Xeros in March 2009. His career to date with various blue chip corporations (including DuPont, INVISTA and ICI) has focused on novel polymer solutions. Over this time he has successfully commercialised new product developments in Europe, USA, India and the Far East. Steve is the author of multiple patents associated with these developments and heads Xeros's Research and Development team.


Non-executive Directors


John Samuel, Chairman

John joined Xeros as Chairman in September 2011. John has previously held a number of senior finance positions and was formerly the CEO of the Molnlycke Health Care Group as well as a former partner with Apax Partners LLP. John is also the Chairman at Tissue Regenix, FrosundaOmsorg and Vernacare.


Charles Winward

Charles was appointed to the Xeros Board in October 2010. Charles is a Director of IP Group plc having joined in April 2007 to manage investments in Top Technology Ventures, the Group's venture capital fund management subsidiary. Charles previously worked at JPMorgan Chase & Co and as an Investment Manager at Axiomlab, an AIM-listed early stage investment specialist. Charles is a CFA charterholder, has an MBA from the University of California at Berkeley and a Bachelors Degree in Mechanical Engineering from the University of Bristol.


Julian Viggars

Julian was appointed to the Xeros Board in June 2009. Julian is Head of Technology Investment at Enterprise Ventures, which is an investor in Xeros. He was previously a Director of BioProjects International plc, an AIM-traded early stage technology fund and an Associate Partner with accountancy firm NCL Smith & Williamson in London.


Maciek Drozdz

Maciek was appointed to the Xeros Board in October 2013. Maciek is an Investment Manager at Entrepreneurs Fund, an investor in Xeros. Before joining Entrepreneurs Fund he was an analyst at Atlas Venture in Munich and an Investment Director at MCI Bioventures in Poland. Maciek holds an MSc in molecular biology from A. Mickiewicz University, and a PhD from ZentrumfuerMolekulareBiologie in Heidelberg. He also has an MBA from Said Business School in Oxford.



This announcement which has been prepared by, and is the sole responsibility of, the Directors of Xeros Limited has been approved for the purposes of section 21 of the Financial Services and Markets Act 2000 by Jefferies International Limited ("Jefferies"), which is authorised and regulated by the Financial Conduct Authority.

This announcement does not constitute an admission document relating to Xeros and does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in Xeros in any jurisdiction nor shall it, or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with or act as any inducement to enter into, any contract therefor.

Recipients of this announcement who are considering acquiring Ordinary Shares following publication of the admission document are reminded that any such acquisition must be made only on the basis of the information contained in the admission document which may be different from the information contained in this announcement.

Jefferies is authorised and regulated by the Financial Conduct Authority in the United Kingdom and is acting exclusively for Xeros and no one else in connection with the Offer and will not regard any other person as their respective client in relation to the Offer and will not be responsible to anyone other than Xeros for providing the protections afforded to its clients or for giving advice in relation to the Offer or the contents of this announcement or any transaction, arrangement or other matter referred to herein.

Apart from the responsibilities and liabilities, if any, which may be imposed on Jefferies by the Financial Services and Markets Act 2000 or the regulatory regime established thereunder, Jefferies accepts no responsibility whatsoever, and makes no representation or warranty, express or implied, in relation to the contents of this announcement, including its accuracy, completeness or for any other statement made or purported to be made by it or on behalf of it, Xeros, the Directors or any other person, in connection with Xeros, the Ordinary Shares or the Offer, and nothing in this announcement shall be relied upon as a promise or representation in this respect, whether as to the past or the future. Jefferies accordingly disclaims all and any liability whatsoever, whether arising in tort, contract or otherwise (save as referred to above), which it might otherwise have in respect of this announcement or any such statement.

The Ordinary Shares have not been, nor will they be, registered under the US Securities Act of 1933, as amended (the "Securities Act") or with any securities regulatory authority of any state or other jurisdiction of the United States or under the applicable securities laws of Australia, Canada, Japan, or South Africa.  Subject to certain exceptions, the Ordinary Shares may not be offered or sold in the United States, Australia, Canada, Japan or South Africa or to or for the account or benefit of any national, resident or citizen of Australia, Canada, Japan or South Africa or any person located in the United States. The offer and the distribution of this announcement in other jurisdictions may be restricted by law and the persons into whose possession this announcement comes should inform themselves about, and observe, any such restrictions.

This announcement includes "forward-looking statements".  All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding the Group's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Group's products and services) are forward-looking statements.

Forward-looking statements are subject to risks and uncertainties and accordingly the Group's actual future financial results and operational performance may differ materially from the results and performance expressed in, or implied by, the statements.  These factors include but are not limited to those described in the formal admission document.

These forward-looking statements speak only as at the date of this announcement. Xeros expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect actual results or any change in the assumptions, conditions or circumstances on which any such statements are based unless required to do so by the Financial Services and Markets Act 2000, the AIM Rules for Companies or other applicable laws, regulations or rules.

- Ends -



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