ASX-listed manufacturer Alexium International Group has signed an initial agreement to supply chemicals to a US homewares company for a new line of cool-touch pillows, in a move the company said could eventually generate revenues of $US10 million per annum.
ASX-listed manufacturer Alexium has signed an initial agreement to supply chemicals to a US homewares company for a new line of cool-touch pillows, in a move the company said could eventually generate revenues of $US10 million per annum.
Under the agreement, Alexium will supply upwards of 2 million pounds of cooling product annually from its facility in South Carolina.
The possible tie up with New York-based Pegasus Home Fashions is still in early stages, however, as an exclusivity arrangement has not yet been formalised
The agreement was a precursor to a more formal contract, the company said in a release today.
Alexium president Dirk Van Hyning said it was a major account for Alexium, and he hoped to expand into other potential homewares.
“The speed at which this agreement progressed from initial discussions on potential product lines is a clear testament to the vision and drive of Pegasus Home Furnishings owner, Carmine Spinella, the strength of our Alexicool product, and of Alexium’s exquisite knowledge of phase change material formulations,” Mr Van Hyning said.
“Alexium looks forward to continuing deliveries of chemistry on this major account and working with Carmine, Lou and the Pegasus team to bring more Cool-Touch products to market.”
Shares in Alexium were up 10.7 per cent to 67.5 cents each at the close of trading today.