Alexium Goes Full Scale with US Sales
ASX-listed chemical company Alexium International (ASX:AJX) has bagged a full production run order for its Alexiflam product of 1.5 tonnes, and says it could be a sign of things to come.
Its product is used in the ‘ticking’ of mattresses, the final component of mattresses used to encase everything in the mattress while protecting internal materials. In this case, the Alexiflam product makes the mattress flame retardant.
In recent times AJX has been working closely with an unnamed major customer in the US on scaling up early tests with the material to full production.
It told the market this morning that the goal had been reached, with a full production run of the client’s mattresses coated with Alexiflam now bound for stores.
The order is for 1.5 tonnnes of Alexiflam, and AJX said it expects similar-sized orders to come in every month, giving the company regular income.
Crucially, AJX said the full-scale purchase order means it has been just four months from trial work to purchase order.
Last month it told shareholders that an initial order from the client would be worth $US200,000 ($A271,275) to $300,000 per month, with the revenue to start rolling in the third quarter.
It is unclear whether the ongoing orders will be within this range, or higher.
The client, however, is currently experimenting with Alexiflam in other products – possibly pointing to increased sources of revenue.
Last month’s news sent shares in AJX through the $1 mark, and while the shares have pulled back since then, it is currently up over 3.3% to 92.5c in early trading.
Last week it announced that Rhode Island-based supplier to the US military, Murdock Webbing, had agreed to use AJX’s product in stretch webbing used in flexible straps for goggles.
The product deal gives Alexium an entry into a global market which is worth a total of $3.2 billion.
While the initial deal covers goggles, Alexium said there was scope to increase the deal to other products such as backpacks, parachutes, field vests, duffle bags, uniform accessories, belts, and tents.
It said Murdock products with the AJX fire retardant finish should be available from the first quarter next year.