A promising technology platform - Calix is a multi-award-winning Australian technology company that is developing new processes and materials to solve global challenges. Calix is using these minerals, which are safe and environmentally friendly, to improve waste water treatment and phosphate removal, help protect sewer assets from corrosion, and help improve food production from aquaculture and agriculture with reduced antibiotics, fungicides and pesticides. Calix has secured 3.4 million Euros in working capital from EFIC, the Australian Government’s export credit agency, to build the CO2 capture facility for the Low Emissions Intensity Lime and Cement (LEILAC) project in Belgium.
The Company issued the prospectus on 25 June 2018. The Company has made significant commercial progress since bringing its first products to market in 2013. It has achieved a compound annual revenue growth for its core products of 41.8 per cent between 2015 and 2017, with significant revenue growth achieved in the first half of this financial year (as compared to the first half of the 2017 financial year). Calix’s strategy is to continue the commercialisation of its wastewater treatment and sewer infrastructure protection products both in Australia and New Zealand, while also expanding its market entry in the US. Calix generated positive operating cash flow in FY15 and became EBITDA positive in FY17.
Calix’s Core Product Revenue; A$M (Source: Company Reports)
Despite having achieved an average customer retention rate of greater than 95 per cent to date, there is no guarantee that existing customers of Calix’s products and applications will continue to purchase from Calix, and whether new customers will purchase products from Calix. Moreover, there is a risk that existing products cannot continue to be developed into new applications that exploit the unique properties of the CFC (Calix Flash Calcination) technology.
The offer was of 15.1 million Shares at $0.53 per Share for proceeds of $8.0 million (before Offer Costs). It is expected that the shares will be trading on ASX on 20 July 2018. The Group will use its proceeds for the developments which are already in the pipeline, in new market developments in US, EU and Asia, and in manufacturing the logistics and efficiencies.
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