SOURCE: Alexium International

Alexium International

April 13, 2016 23:27 ET

Alexium Successfully Completes A$6.0 Million Institutional Placement to Pursue Growth Opportunities and Fund Working Capital

PERTH, WA and GREER, SC--(Marketwired - Apr 13, 2016) - Alexium International Group Limited (ASX: AJX) (OTCQX: AXXIY)

Highlights

  • Issuance of approximately 9.7 million new ordinary shares at a price of $0.62 per share.
  • Significant demand from new and existing institutional shareholders.
  • Capital raised will be used to fund the development into new markets and categories, take advantage of new sales opportunities from the growing sales network and fund working capital.

Alexium International Group Limited ("Alexium," "the Company") (ASX: AJX) (OTCQX: AXXIY) has announced that it has successfully undertaken an institutional placement of new fully paid ordinary shares to raise approximately A$6.0 million.

The placement was strongly supported by a number of new and existing institutional investors.

Under the placement, Alexium will issue approximately 9.7 million new ordinary shares at a price of A$0.62 per Share.

Proceeds from the placement will be used to fund the Company's development of environmentally friendly fire retardant (FR) chemistries into new markets and categories, take advantage of new sales opportunities from the growing sales network and fund working capital.

"We're gratified by the confidence that both our existing and new investors have shown in our momentum and our strategies for market growth, and a significant number of new institutional shareholders will join Alexium's register at completion of the placement," said Nicholas Clark, CEO and Executive Director.

"We've been monitoring the legislative and regulatory trends in the United States, and the increasing focus on environmentally friendly FR solutions has provided a strong pipeline for our innovative products for the commercial and defence sectors," Clark said. "In fact, we are seeing similar opportunities globally, and Alexium is investing aggressively in partnerships for distribution and sales."

Settlement of the placement is scheduled for Tuesday, 19 April 2016 and the placement shares are expected to be allocated and issued on Wednesday, 20 April 2016. The placement shares will rank equally with existing shares on issue.

The trading halt that has been in place since Wednesday, 13 April 2016 will be lifted from the commencement of trading today.

Moelis Australia Advisory Pty Ltd acted as sole lead manager and bookrunner for the placement.

About Alexium
Alexium International Group Limited (ASX: AJX, AX:AJX OTC QX: AXXIY) holds proprietary patent applications for a process developed initially by the U.S. Department of Defense, which allows for the surface modification and attachment of nano-particles or multiple chemical functional groups to surfaces or substrates to provide functions such as fire retardancy, water proofing, oil proofing, and anti-microbial treatments. 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.

About Moelis
Moelis and Company is a global independent investment bank that provides financial advisory services to corporations, governments and financial sponsors. The firm advises on strategic decisions such as mergers and acquisitions, recapitalizations and restructurings and other corporate finance matters. It was founded in 2007 and is headquartered in New York, with 17 offices in North and South America, Europe, the Middle East, Asia and Australia. It has 650 employees including 450 investment bankers. Of the 100 managing directors, averaging more than 20 years of experience.