MyCelx Technologies Corporation Trading Update (3696V)

TIDMMYX TIDMMYXR

RNS Number : 3696V

MyCelx Technologies Corporation

30 January 2017

30 January 2017

MYCELX TECHNOLOGIES CORPORATION (AIM: MYX)

("MYCELX" or the "Company")

Trading Update

MYCELX Technologies Corporation (AIM: MYX), the provider of patented water treatment solutions for the oil and gas and commercial industrial markets worldwide, is pleased to provide a Trading Update.

Throughout 2016, MYCELX continued to demonstrate good operational progress with a recent contract award for a fifth installation of offshore water treatment equipment for a current customer. Additionally, MYCELX commissioned its fourth water treatment system servicing terminals on the Houston Ship Channel and expects the subsequent media sales to begin in 2017.

The Board is confident that it will be able to report results for the full year ended 31 December 2016 which are in line with market expectations, and show MYCELX having successfully achieved an operationally cash flow neutral position, in line with its stated target.

Since announcing its exclusive marketing and distribution agreement with Schlumberger in June 2016, both companies have collaborated to organize the global marketing initiative that was launched in 4Q 2016 and has been presented in six countries to date. This targeted engagement with industry decision makers is expected to lead to the deployment of MYCELX proprietary water treatment systems, in particular MYCELX's RE-GEN product for the upstream market. Whilst it is too early to forecast the likely 2017 revenue contribution, the pipeline is growing and joint proposal activity is increasing.

Overall, the MYCELX contracted order book is stronger than this time last year and the Company therefore envisages a year-on-year revenue increase for 2017 in the range of 30%, with the aim of being EBITDA neutral, and with no material change in cash balance. MYCELX's revenue is already being generated from a broader geographic base than previously. The Company fully expects this positive trend, which is a result of our deliberate efforts to broaden our geographic exposure, to continue.

As is widely reported, the investment climate remains uncertain and, consequently, forecasting with any degree of accuracy remains challenging. As such, we will continue to adopt a prudent approach to expenditure, whilst continuing the encouraging international sales and marketing efforts.

MYCELX will be providing further guidance at the time of its results for the year ended 31 December 2016, expected to be announced in May 2017.

Commenting on today's Trading Update, Connie Mixon, CEO, said:

"MYCELX's world leading clean water technology solutions continue to gain traction into its core market of the oil & gas sector, and increasingly beyond. Our partnership with Schlumberger is progressing well with the global marketing initiative currently underway. We are also pleased to update on other important operational milestones, such as our further work with a repeat global oil and gas customer. Our progress as a business is firmly underpinned by industry's requirement for innovative technologies to manage their water requirements. We are providing a service that not only significantly enhances the economics of our clients' projects, but that also ensures improved operational efficiencies and performance."

"We are pleased to confirm that we will meet guidance for 2016. Looking ahead, this year is expected to continue to show an improved financial performance. However, market uncertainty remains the reality and accurate 2017 full year guidance remains difficult at this stage. That said, we are encouraged by the levels of interest and that the order book is currently ahead of where it was at the same time last year."

For further information please contact:

 
MYCELX Technologies Corporation 
 Connie Mixon, CEO                             Tel: [phone] 
 Kim Slayton, CFO 
Cantor Fitzgerald Europe - Nomad and Broker 
 Andrew Craig                                  Tel: [phone] 
 Richard Salmond 
Celicourt Communications 
 Mark Antelme                                  Tel: [phone] 
 Joanna Boon 
 

Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) prior to its release as part of this announcement.

Notes to Editors

MYCELX is a revolutionary oil-free water technology company solving the world's toughest oil removal problems in the oil and gas industry. The systems are based upon scientific breakthrough for a completely different approach to permanent oil removal. The Company created the patented MYCELX polymer using innovative molecular cohesion for removing oil from water far beyond what conventional systems have ever achieved. MYCELX systems remove oil to critically low levels in a much smaller physical footprint than conventional systems and in a virtually fail-safe process.

www.mycelx.com

This information is provided by RNS

The company news service from the London Stock Exchange

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January 30, 2017 02:00 ET (07:00 GMT)