TIDMHEIQ
RNS Number : 5090B
HeiQ PLC
14 February 2022
14 February 2022
HeiQ Plc
("HeiQ" or "the Company")
HUGO BOSS invests in HeiQ's new sustainable yarn
HUGO BOSS invests in HeiQ AeoniQ and The LYCRA Company acquires
exclusive distribution rights
HeiQ Plc (LSE: HEIQ), a Swiss IP innovator and established
global brand in materials and textile innovation which operates in
high-growth markets, has signed a development partnership agreement
with HUGO BOSS (MDAX: BOSS) to support the commercialization of
HeiQ's latest innovation, HeiQ AeoniQ, a high performance, climate
positive, cellulose yarn aimed at decarbonizing the fashion
industry. HUGO BOSS, one of the leading companies in the global
premium apparel market, has invested US$5 million in HeiQ's 100%
owned subsidiary at an implied valuation of US$200 million. HeiQ
AeoniQ LLC will use the proceeds towards funding the pilot
commercialization plant, scheduled for Q2 2022.
As well as the initial investment, HUGO BOSS has agreed to make
additional deferred payments of up to US$4 million, subject to the
completion of specific project milestones. The agreement also
contains a call option, enabling HUGO BOSS to acquire an additional
holding in HeiQ AeoniQ LLC at the same implied valuation as the
initial equity investment. Today's transaction is the first
sustainability-linked equity investment made by HUGO BOSS as part
of its 'CLAIM 5' growth strategy, which includes a firm commitment
to further strengthen its sustainability efforts to deliver both
measurable impact, as well as emotional engagement with the
consumer.
In addition, HeiQ has signed an agreement with The LYCRA
Company, whereby it will become the exclusive distributor for HeiQ
AeoniQ yarns. The LYCRA Company will pay an undisclosed but
substantial technology fee and deploy industry expertise and sales
resources to accelerate commericalization, subject to the
completion of specific project milestones. As a global leader in
stretch and performance fibers and being renowned for its
innovation prowess and consumer ingredient branding, The LYCRA
Company has committed to develop the technology for broad
application in textiles. The HeiQ Directors believe that The LYCRA
Company is the ideal partner to bring the new HeiQ AeoniQ yarn to
market.
HeiQ AeoniQ Overview
-- HeiQ anticipates delivering the first HeiQ AeoniQ yarns in H2
2022. Discussions for category-exclusivities with additional
leading brand partners are ongoing and progressing well.
-- HeiQ AeoniQ is designed as a substitute for existing
synthetic filament yarns, such as environmentally persistent
Polyester and Nylon, which constitute over 60% of global annual
textile output of 111 million metric tons (Statista).
-- The global Polyester and Nylon fiber market is worth an
estimated US$135 billion with an expected CAGR of >3.5% over the
next decade (Statista).
-- The fashion industry represents a third of the global US$1.7
trillion (Statista), textile market and is responsible for more
than 10% of global CO(2) emissions, over 20% of waste water
worldwide(i) and more than 20% of the microplastics pollution of
the oceans(ii) . Polyester and Nylon take up to 1,000 years to
degrade(iii) and today more than 70% of textiles are disposed in
landfill with only 1% close-loop recycled(iv) .
-- The fibers of HeiQ AeoniQ are made from cellulosic
biopolymers that bind CO(2) from the atmosphere. For every ton of
Polyester & Nylon substituted by HeiQ AeoniQ, the Directors
believe that potentially up to five tons of CO(2) can be reduced.
HeiQ is currently exploring the opportunity to issue carbon credit
certificates with HeiQ AeoniQ.
-- The manufacturing process for HeiQ AeoniQ is expected to
consume 99% less water than cotton yarns and HeiQ AeoniQ is
designed to offer comparable performance properties to Polyester,
Nylon and conventional regenerated cellulose yarns.
-- When compared to conventional Polyester, Nylon, cotton and
conventional regenerated cellulosic products, the production of
HeiQ AeoniQ yarns will aim to have the best-in-class environmental
credentials, as it is designed to be recyclable in a circular
textiles economy, will use 100% renewable energy for manufacturing,
will feature closed- loop recycling for more than 99.5% of
materials used, will use no restricted substances and will not draw
on arable land, pesticides or fertilisers for its feedstock.
-- Mr. Martin Gebert-Germ, a viscose filament yarn expert with
30 years of experience in the textile industry, is leading the
commercialization of HeiQ AeoniQ LLC as CEO.
HeiQ Group co-founder and CEO, Carlo Centonze said:
" The financial commitments by such prestigious companies as
HUGO BOSS and The LYCRA Company are strong endorsements of the
enormous potential we see in HeiQ AeoniQ, which is one of seven
HeiQ technology platforms. These agreements also demonstrate our
ability to commercialize our HeiQ AeoniQ IP, which, whilst still at
an early stage, has secured third party investment at an implied
US$200 million valuation. We believe that, because of its physical
strength, HeiQ AeoniQ yarn is a versatile alternative to Polyester
and Nylon and its climate positive qualities create a very exciting
future market opportunity for HeiQ, as fashion brands and retailers
come under increasing pressure to do their part in commercializing
their products and reduce their environmental footprints ."
Daniel Grieder, CEO of HUGO BOSS commented:
" Our exciting partnership with HeiQ on HeiQ AeoniQ represents
yet another important milestone in our journey towards becoming the
leading premium tech-driven fashion platform worldwide. Consistent
with our bold mission statement 'We Love Fashion, We Change
Fashion', this game-changing collaboration with HeiQ enables us to
further push innovation and sustainability across our brands'
offerings, thereby driving measurable impact for the environment
and society alike."
Julien Born, CEO of The LYCRA Company commented:
"Sustainability continues to be a core tenet of The LYCRA
Company's strategy as we are focused on providing value-added
technologies to help our customers create and develop exceptional
fabric and garment offerings while reducing the environmental
footprint, without sacrificing comfort or performance. Through our
close collaboration with HeiQ, we are working together to
fast-track the commercialization of HeiQ's AeoniQ yarn and are
excited by the impact this ground-breaking innovation will have on
the apparel industry."
Annual results
The Company expects to announce its annual results for full year
2021 by the end of April 2022. The Directors expect the results to
be well in line with market expectations.
Footnotes
i) European Parliament, the impact of textile production and waste on the environment, https://www.europarl.europa.eu/news/en/headlines/society/20201208STO93327/the-impact-of-textile-production-and-waste-on-the-environment-infographic , retrieved on 10 February, 2022
ii) Science of The Total Environment, vol 652, 2019, 483-494
iii) ACS Sustainable Chem. Eng. 2020, 8, 9, 3494-3511
iv) Ellen MacArthur Foundation, A new textiles economy: Redesigning fashion's future, (2017, http://www.ellenmacarthurfoundation.org/publications)
This announcement contains inside information.
For further information, please contact:
HeiQ Plc
Carlo Centonze (CEO) +41 56 250 68 50
Cenkos Securities plc (Joint Broker)
Stephen Keys / Callum Davidson +44 (0) 207 397 8900
---------------------
SEC Newgate (Media Enquiries) +44 (0) 20 3757 6882
Elisabeth Cowell / Robin Tozer / Megan Kovach HeiQ@s ecnewgate
.co.uk
---------------------
About HeiQ
HeiQ is focused on improving the lives of billions of people
world-wide by innovating the materials people use every day. HeiQ
has strong IP which is at the forefront of global technology in the
$10 billion antimicrobial fabrics market, $24 billion textile
chemicals market, the $50 billion probiotics market and the $150
billion man-made fibers market. It has also moved into the medical
device, healthcare and hygiene coatings markets, to help make
hospitals and healthcare environments more hygienic. HeiQ aims to
deliver growth for its shareholders through a combination of
increased sales of its core products and by entering additional
lucrative markets through disruptive innovations and M&A.
HeiQ has created some of the most effective, durable and
high-performance technologies in the market today, which cool,
warm, dry, repel, purify, and destroy viruses. Since 2005, HeiQ has
developed over 200 technologies in partnership with 300 major
brands and it has a significant R&D pipeline containing over 50
projects. The Company has won multiple awards and gained a strong
reputation for the ESG & sustainable downstream effect of its
innovations. HeiQ is the only company to have won the Swiss
Technology award twice. It has also won the Swiss Environmental
award with an innovation that saves energy and water consumption
during the textile manufacturing process.
Led by an experienced leadership team, HeiQ researches new
solutions for partners, delivers scaled up manufacturing from its
sites across the world and helps partners market the product to end
consumers - aiming for lab to consumer in months.
About HUGO BOSS
HUGO BOSS is one of the leading companies positioned in the
premium segment of the global apparel market. With its two brands,
BOSS and HUGO, the group offers collections in 127 countries at
around 7,350 points of sale and online in 59 countries via
hugoboss.com. With approximately 13,800 employees worldwide, the
company, based in Metzingen (Germany), posted preliminary sales of
EUR 2.8 billion in the fiscal year 2021. group.hugoboss.com
About The LYCRA Company
The LYCRA Company innovates and produces fiber and technology
solutions for the apparel and personal care industries.
Headquartered in Wilmington, Delaware, The LYCRA Company is
recognized worldwide for its innovative products, technical
expertise, sustainable solutions, and unmatched marketing support.
The LYCRA Company owns leading consumer and trade brands: LYCRA(R),
LYCRA HyFit(R), LYCRA(R) T400(R), COOLMAX(R), THERMOLITE(R),
ELASPAN(R), SUPPLEX(R), and TACTEL(R). The LYCRA Company's legacy
stretches back to 1958 with the invention of the original spandex
yarn, LYCRA(R) fiber. Today, The LYCRA Company focuses on adding
value to its customers' products by developing unique innovations
designed to meet the consumer's need for comfort and lasting
performance. For more information, visit
www.thelycracompany.com
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