XTPL – the key activities in the first half of 2020
(summary of the Half-Yearly Report and significant events in H1 2020)
• Intensification of commercialization activities
• Extension of the patent cloud
• Raising financing through the issue of shares and convertible bonds
• “BUY” recommendation from MainFirst Bank AG
SUCCESSFUL ISSUE OF SHARES AND BONDS
At the turn of the first and second half of the year, XTPL issued series T shares and bonds convertible into the Company’s shares. In total, the Company’s proceeds from the issue of the shares and bonds are PLN 12.85 million. The subscription for series T shares was completed on 23 June 2020, while the convertible bonds were issued on 30 July 2020. The funds will be allocated to the development of the commercialization process, expansion of the patent cloud and further R&D work. The Company estimates that taking into account only the proceeds from the last financial round, it has secured funding for continuation of work in all areas until the beginning of 2022.
INTENSIFICATION OF COMMERCIALIZATION ACTIVITIES
Since the second quarter of 2020, the Company has been developing its offer of proprietary products based on the UPD technology and, in the case of inks, also other technologies used in the market.
“License revenues remain the strategic goal for XTPL. Continuation of the commercialization process aimed at selling licenses requires the delivery of the XTPL technology demonstrator to our clients’ R&D departments. The above-mentioned XTPL technology demonstrator is a laboratory printer for which we have identified a wider market demand. This device is of interest to industrial and academic entities involved in conducting innovative R&D works in the field of modern electronic components” says Filip Granek, CEO of XTPL S.A.
Currently, tens of discussions are being held with potential buyers of the laboratory device, including one case when negotiations are at a very high level of advancement. When this type of printing system is delivered to industrial partners or leading scientific institutes, it will significantly boost the popularity of the innovative method developed by XTPL, which may help expand the target application fields and trigger related sales.
Moreover the Company has significantly expanded the scope of its commercialization activities in terms of inks for precision printing. A dedicated sales department has been set up, and a subpage on the Company’s website has been created to make it easier for potential customers to access information and place orders. XTPL inks are currently being tested in many R&D units in Europe In addition to the inks compatible with the XTPL technology, the Company is actively expanding its product portfolio to include other technologies available in the market. The ink-related technologies being tested at present include: Aerosol Jet Printing, Ink-jet printing, Micro-dispensing, LIFT, and EHD. Tests for Flexography and Gravoure technologies are planned. In H1 2020, sales were made to four customers, including firms with which the Company is now conducting commercial talks on the commercialization of its technology.
PATENT CLOUD DEVELOPMENT
In the first half of 2020, the XTPL R&D team completed work on six new patent applications. The first two applications relate to the method and apparatus for characterizing and optimizing ink flow in the printing head nozzle. This method is generic and can be applied not only to the XTPL technology, but also to other printing techniques. Therefore, both patent applications have a major commercial value. The third patent application is a crucial invention from the point of view of applying the XTPL technology in the smart glass sector. It shows how to significantly improve the parameters of transparent conductors. The forth application relates to the design of a new printing head used in the Ultra-Precise Deposition (UPD) process. The fifth application concerns the formulation of high-viscosity ink, compatible with the UPD method. The sixth patent application filed in 2020 relates to predicting the geometric parameters of printed structures based on print parameters.
In February 2020, German MainFirst Bank AG from the Stifel Group issued a “BUY” recommendation for XTPL shares. In September 2020, after a meeting with representatives of MainFirst Bank AG during the Virtual Equity Forum, MainFirst Bank AG maintained its “BUY” recommendation for XTPL at a PLN 210 price target. The German bank recognized that the first tangible results in the commercialization process of XTPL are already visible. According to MainFirst, looking for the different sales channels by XTPL for its products can contribute to a sustainable recurring revenue stream in the medium term. The report was commissioned and paid by XTPL.