The trials are for fire retardant (NYSE:FR) solutions for advanced textiles comprising exotic materials for specific defense sector applications.
The company's customer produces and sells materials with stringent FR requirements and which comprise combinations of exotic materials, including Lycra™, Neoprene™ and natural rubber.
Alexium quickly provided a solution with superior performance, feel and durability over the customer's current FR formulation.
Highlighting the potential, Alexium exceeded the customers FR specification requirements on each of the first two scale up trials.
A third scale up round is now underway to optimize throughput at the customers production and finishing facility.
The revenue potential for our FR formulations on a first application would start at US$1.0MM pa and grow as FR solutions for Lycra™, Neoprene™ and natural rubber are applied to new products.
This new work is an additional element to Alexium's overall Defense sector strategy, complementing the work being undertaken with the US DoD Natick Army Research Center on "Green Initiatives" and the Army Fire Retardant Army Combat Uniform (FRACU).
This week Foster Stockbroking re-iterated its Buy recommendation on Alexium, with a Price Target of $1.10.
This is over double the $0.50 last traded price.
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