Alexium's flame retardant phase change material (NYSE:PCM) will be exclusively used by a leading global mattress fabric producer.
Sales commence in the June quarter and a multi-year production plan is now being developed.
The global bedding customer has plants in North America and Europe, and supplies most of the major manufacturers in the U.S. and abroad with fabrics used for mattress covers.
This sale opens the door into the bedding market for Alexium's flame retardant technology.
Nicholas Clark, CEO commented:
"Our share of the PCM bedding market is more than $5 million annually and we expect this share to grow rapidly given the performance, cost and environmental benefits of our fire retardant PCM product.
"Alexium's fire retardant PCM technology provides bedding manufacturers with an exciting new product feature in a market where innovation is typically incremental.
"Our customers in this segment will now be able to significantly increase market share by offering what is a new and sought-after feature.
"With this sales agreement, we have launched an entirely new flame retardant product, and we're already making significant inroads with scale-up trials with a number of other bedding manufacturers."
Alexium holds over 20 patents across nine countries for a process developed initially by the U.S. Department of Defense, which allows surfaces to become fire retardant, water proof and oil proof.
Applications under development include but are not limited to textiles, paints, and packaging, glass and building materials.
Alexium's fire retardant chemical treatments are currently marketed for different fabric markets under the Alexiflam™, Ascalon™, Nycolon™, Nuvalon™, and Polytron™, Omnitron™ and Bactron™ trademarks.
This sales agreement shows that demand for Alexium's products is increasing across a variety of industries and the company is continuing to grow.
This is Alexium's first sale in the bedding market and will provide a valuable foundation for building further market share.
Sales such as this validate Alexium's innovative technology and its competitive advantages.
Investments in sales personnel are proving to be rewarding as Alexium is tracking ahead of schedule to meet its growth targets for CY2016.
Alexium see further opportunity for sales in bedding and decorative fabrics, military, outdoor, automotive and use in consumer electronics.
During April, Alexium received a Buy recommendation with a A$1.20 target price from Sydney broker Moelis Australia Securities Pty Ltd.
This represents nearly 100% upside from the current share price of $0.61 per share.
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