Alexium International Group (ASX: AJX) has announced a breakthrough technology for thermal management in textile- and foam-based consumer products.
The South Carolina, USA-based performance chemicals provider has a focus on flame retardancy and thermal management, with an innovation model to address market gaps with patent-protected technologies.
The group's environmentally-friendly solutions have applications for several markets including bedding products, military uniforms, and workwear, and they can be customised to meet customer needs.
Its new Phonon perpetual cooling technology enhances the rate of cooling by up to 200 per cent over current products and more importantly the cooling never stops. The company claims this patent pending technology establishes a new standard for extended cooling performance.
The breakthrough cooling technology is poised to disrupt markets by continually regulating and removing heat from consumers, creating a constantly comfortable experience.
The patent pending technology establishes a new standard for extended cooling performance, and from an operational perspective it opens up a host of new markets for Alexium, providing a new growth platform for the business.
While its perpetual cooling properties are the standout feature, the technology also provides a wide range of benefits important to consumers. These include:
- Adaptive/responsive cooling: The hotter a person gets, the more actively the Phonon product works to cool them.
- Non-flammable, non-toxic, and environmentally-friendly product: Phonon products provide enhanced cooling performance without any increased hazards to consumers or the environment.
- Lightweight: Phonon products provide enhanced cooling at a significantly reduced weight relative to other cooling technologies.
The new Phonon perpetual cooling technology adds to the company's existing products, including its Alexicool cooling technologies and Alexiflam flame retardant chemistries.
The Alexicool technologies absorb and release thermal energy to maintain a cool outer temperature that is comfortable against the skin.
In their solid form, Alexicool products are fully encapsulated phase change materials (PCMs) that absorb body heat and melt into a liquid form, drawing heat away from the skin and containing it in the core of the PCM capsule.
The company's Alexicool Total Mattress Cooling System (TMCS) takes a systems approach to total mattress cooling, leveraging its materials science expertise and analytical tools to enable unique leading edge products.
Now with its new Phonon technology, Alexium can significantly expand its offerings for total mattress cooling systems (TMCS) where a number of customer trials have proven the viability of this patent-pending, breakthrough technology platform.
The total addressable market in the US for cooling technologies in TMCS is estimated at US$60 million, with an additional US$25 million for top-of-bed applications.
Beyond bedding applications, this technology has comparable opportunities in other markets, including upholstery, medical products, sporting goods, and outdoor apparel/accessories.
The group has established robust relationships with clients/distributors, including the US Defence Force, major flame retardant chemical company Israel Chemicals Ltd (TASE/NYSE: ICL), and Soft-Tex a supplier to the largest bedding retailer in the US, Serta-Simmons Bedding.
Given Alexium's established position in bedding markets, this industry is the initial target for commercial application of the new technology.
Alexium chief executive Bob Brookins said, "Cooling technologies have become a critical selling feature for premium mattress manufacturers over recent years and Alexium has garnered a deserved reputation for leading technical innovation and analytics via its Alexicool products.
"Generally, technical innovation is incremental in nature and it is therefore particularly exciting to announce today a truly disruptive platform technology, one which we believe can change the narrative in relation to thermal management solutions not just for the global mattress industry but also for several other performance applications in consumer products."
Colinton Capital joins AJX
Sydney-based institutional investor, Colinton Capital Partners, has recently taken a position in the company. Colinton is headed by Simon Moore, a leading Australian entrepreneur, who has also taken up a Board position at Alexium.
As a general rule, Colinton invests in growing businesses with strong market positions, positive earnings and enterprise values from $20 million to $200 million. The group specialises in providing flexible capital solutions for expansion, succession planning, management buy-outs/buy-ins, public-to-private transactions and active minority public positions, an ideal partner for Alexium in terms of negotiating the corporate world.
Colinton's investment in Alexium is certainly a positive endorsement of the business, and brings significant strategic guidance in negotiating what at times be a challenging path for smaller companies.
One of the factors that really sold Colinton regarding Alexium's potential was that it had two proven products, plus established goodwill and credibility in the market. This provides a running start in terms of having credibility with customers on each side of the business.
Especially with big bedding customers and on the defence uniform side of the business, it can be difficult to build that initial level of trust. The brand's reputation and its goodwill is already established in the eyes major customers such as Serta, and US military uniform provider Pine Belt Processing, meaning Alexium doesn't have to establish itself from ground zero.
The recent addition of Dr Paul Stenson to the Board brings significant advanced material sciences and fire retardants expertise. Stenson's experience in research and development, commercialising products and leveraging third party distribution networks in the US will also be highly valuable. He has lengthy experience in working for big chemical companies similar to ICL, enabling him to understand all facets of Alexium's business.
The article was brought to you by Alexium International Group. Business News Australia does not give financial advice.
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