Xeros Technology Group plc

Proposed Placing to raise approximately £25 million

Xeros Technology Group plc (AIM: XSG, ‘the Group’, ‘Xeros’), the developer and provider of patented polymer based technologies with multiple commercial applications, intends to raise approximately £25 million before fees and expenses by a Placing of 11,111,112 new ordinary shares with existing and new institutional investors at a placing price of 225 pence per Placing Share (the ‘Placing’). The Placing will be structured in two parts.


· Proposed Placing will raise approximately £25 million.

· Proceeds will be used to accelerate commercialisation of the Group’s portfolio of applications; and for continued investment in polymer science and engineering and the creation of intellectual property in support of commercialisation of applications.

· Proceeds will be used to deliver major operational milestones in 2018 which provide demonstrable value to commercial partners and investors alike:

o Cleaning Technologies – domestic markets, high performance workwear and hotel & lodging sector;

§ In the home: as previously announced, Xeros will demonstrate its new domestic washing machine at the Consumer Electronics Show (‘CES’) in Las Vegas in Jan ’18 with the expectation of entering licensing agreements with at least one global machine OEM;

§ High Performance Workwear: Xeros expects to continue its penetration of the US firefighter market in 2018 and establish a business platform which provides strategic funding options for growth of this business beyond 2018;

§ Hotel & Lodging: Xeros plans to sign royalty agreements, under its Symphony Project, with at least two leading global OEMs and is planning major expansion in EMEA using Forward Channel Partners.

o Tanning Technologies in bovine tanning market;

§ Xeros is targeting to sign at least four multi-year contracts with leading European tanneries as well as establishing commercial presence in the US tannery market. In combination, these are intended to establish a business platform which provides strategic funding options for the growth of this business beyond 2018.

o Textile Technologies in garment dyeing and denim finishing markets;

§ In both denim finishing and garment dyeing, Xeros expects to complete commercial scale trials which demonstrate the potential for capital light business models for each of these applications.

Mark Nichols, Chief Executive of Xeros, said:

“We have developed unique polymer technologies which substantially reduce water, chemistry and energy usage. Over the last two years we have materially progressed their application in three world-scale markets: cleaning, tanning and textiles.

“Having completed the majority of this development, we are now progressively commercialising six business applications in our chosen markets with major milestones for each targeted in the near term. IP-rich business models with low capital intensity have been designed to provide demonstrable value to commercial partners and investors alike.

“We are delighted to welcome new investors who support our unique proposition and strategy. This fundraise enables us to progress significantly the commercialisation of our technologies and enhancement of shareholder value.”

A circular will be distributed to shareholders and made available on Xeros’ website shortly with further details of the Placing and to give notice of the general meeting to consider and, if thought fit, approve the resolutions laid out in the circular. The general meeting is to be held at the offices of Squire Patton Boggs (UK) LLP at 7 Devonshire Square, London EC2M 4YH at 10.00 a.m. on 28 December 2017. The formal notice of general meeting is set out in the circular.


Xeros Technology Group plc

Mark Nichols, Chief Executive Officer

Paul Denney, Chief Financial Officer

Tel: 0114 321 6328

Jefferies International Limited (Nominated Adviser and Joint Broker)

Simon Hardy / Will Soutar

Tel: 020 7029 8000

Berenberg (Joint Broker)

Chris Bowman / Ben Wright / Laure Fine

Tel: 020 3207 7800

Instinctif Partners

Adrian Duffield / Helen Tarbet / James Gray

Tel: 020 7457 2020

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