We are pleased to provide an update on a company we have been involved with for many years, Alexium International (ASX:AJX).
In a positive turn of events, whilst many businesses have been adversely affected due to the COVID-19 lockdown, Alexium, from all reports, is returning to more normal conditions with increasing sales. Sales can be attributed to both re-stocking of inventory, and the return of demand for bedding and mattress applications as consumers spend more time at home, with a focus on comfort. Whilst sales during the peak of COVID-19 were impacted, the company was pleased to report declines in sales were not as disastrous as provisioned. Alexium remains in a healthy net cash position and has confidently stated no requirement to return to shareholders for additional capital.
Alexicool® Phonon technology unveiled
An exciting addition to Alexium’s offering, and, as anticipated, the share priced reacted in turn. This industry-first, patent-pending technology enhances the rate of cooling by up to 200% over current products and establishes a new standard for extended cooling performance. Currently, the company is exploring multiple potential products for which this technology can be commercialised. Initial attention will be directed towards existing clients in the bedding space for apparel in key markets, jackets, backpacks, and so on. At a later stage, once the product has industry acceptance, premium applications such as upholstery (in-home or automotive) and medical equipment will be developed, extending the technology’s many applications.
Patent protection?
No problem, Alexium is confident they will be granted a pending patent shortly. This patent has a 20-year term and will apply to all textile products.
Soft-Tex International Inc
In addition to the market update on the 15 April 2020, Soft-Tex Mattress will launch in a few months. This is an industry first, where Alexium’s Alexicool® PCMs will provide the cooling engine for Soft-Tex’s REACTEX technology, which manages bedding system heat flow and provides a comfortable sleep environment. Soft-Tex has business relationships with some of the world’s most recognisable retailers, including Bed Bath & Beyond, Amazon, J.C. Penney, and Dillard’s. This is an incredible partnership, anticipated to be very rewarding over the coming years.
Alexium’s Flame-Retardant Mattress Sock
On 1 June 2020 the product passed flammability testing required by U.S. Federal Safety Standards in 16 CFR 1633. This is a critical step, ensuring the Mattress Sock meets all required specifications. Having achieved third party certification, Alexium has been given the green light to begin the customisation process with clients across multiple applications.
The potential game changer
U.S. Department of Defense service personnel protected and kept safe with Alexium’s fire retardant technology – whilst the company has stated bedding is the priority at present, it is acknowledged military grade textiles are a natural next step. This presents Alexium the opportunity to team up with an existing textile supplier to the armed forces. Pine Belt Ltd Pty returned to operations after the COVID-19 lockdown and has resumed testing of Alexiflam®. These treatments provide a durable fire retardant finish to fabrics. A supply agreement of this nature would transform Alexium. Not only would revenue be reoccurring, but government departments are also renowned for paying a premium. Read more here.
It would seem Management’s tireless efforts over the past 18 months are beginning to be reflected in the share price. Given the achievement of key milestones highlighted, we look forward to continuing the journey with Alexium.
Learn more about Alexium International here.