Alexium taps investors for $6m

Specialist materials technology company Alexium International Group has raised $6 million from investors to fund ongoing development of its flame retardant products.

Alexium, which is headquartered in Perth but focused operationally on the US, raised the funds through the placement of 9.7 million shares at 62 cents each to new and existing institutional shareholders.

The company will use the new funds for ongoing development of its fire retardant chemistries into new markets and categories, forge new sales opportunities, and for general 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,” Alexium chief executive Nicholas Clark said.

“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.

“We are seeing similar opportunities globally, and Alexium is investing aggressively in partnerships for distribution and sales.”

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

Alexium shares were 3.5 per cent lower to 67 cents each at 10am