Alexium and Soft-Tex join forces
In a significant commercial development for Alexium International Group Limited (ASX:AJX), the company has signed a supply agreement with Soft-Tex International, Inc. (Soft-Tex) to exclusively purchase Alexicool® phase change material (PCM) products for bedding systems based on Soft-Tex’s Reactex® technology.
Alexicool® is Alexium’s proprietary cost-effective chemical finish for fabrics that absorb heat while providing a cool-to-the-touch feel.
Designed for bedding fabrics to improve comfort, Alexicool® also provides a durable PCM finish at a practical cost, offering high heat capacity and wash durability while being halogen free.
The agreement with Soft-Tex is a significant step forward on the first two Key Growth Pillars outlined by management in its half-year result, and it is the completion of a key milestone for the commercialisation of “total mattress cooling systems”.
These growth pillars revolve around providing the company with a unique value proposition to offer its customers, while also differentiating itself from competitors in a market that is valued at the US$65 million in the US alone.
Soft-Tex to exclusively use Alexicool®
Under the agreement, Soft-Tex International will exclusively use Alexicool® products for top-of-bed and mattress applications.
Terms of exclusivity apply to both current and future PCM based products from Soft-Tex International.
The agreement has an initial two-year term and may be automatically renewed.
The agreement specifies the provisions for the commercial relationship, including pricing, supply capabilities, and Alexium’s analytical support for Soft-Tex International commercial efforts.
Alexium’s management has conducted due diligence on Soft-Tex International and its suppliers, and they are confident with the distribution plan established by Soft-Tex International.
Soft-Tex International, Inc. manufactures and distributes premium specialty sleep products.
The group is headquartered in Waterford, New York with have operations in Shanghai, China.
The company has maintained its position as a leader in the basic bedding arena for three decades by constantly incorporating the latest sleep technologies.
Complementary technologies that draw on each other’s market strengths
Commenting on the signing of this agreement, chief executive Bob Brookins said, “Alexium is excited to be taking this step forward with Soft-Tex as we are pleased to provide products and services based on our advanced materials sciences capabilities.”
Alexium Chief Commercial Officer, Allen Reihman highlighted the complementary nature of the two companies technologies in saying, “This agreement formalizes the innovation partnership between Soft-tex and Alexium, combining the technology and market strengths of both companies.
‘’ReactexTM technology controls heat energy flow and storage to create a customer’s unique ideal personal bedding climate.
‘’Our Alexicool® products uniquely meet Soft-Tex requirements and provide the cooling engine for ReactexTM technology”.
Soft-Tex International is an innovation company focused on building the most comfortable products to help the world sleep and live better with its ReactexTM technologies spanning categories like personal climate control, wellness, antimicrobials and more.
The company has business relationships with some of the world’s most recognizable retailers including Bed Bath & Beyond, Amazon, J.C. Penney and Dillard’s.
Soft-Tex’s Chief Innovation Officer, Mark Smiderle added, “We chose Alexium as an innovation partner because they provide advanced PCM products, technical support, and analytical expertise that enable ReactexTM technology’s thermal regulation advantages.”