Liquid Nano Shareholder Update
Liquid Nano Shareholder Update
Over the last 12 months LiquidNano has made some remarkable advances towards achieving its goal of becoming the market leader in the burgeoning Liquid Glass sector.
Mobile Screen Protection
Having initially launched our Liquid Glass Mobile Screen Protection product in 2017 the management team set a key goal to sign one large global distributor for Mobile Screen Protection in 2018.
In December 2018 Liquidnano achieved this goal by signing not one but two white label (ODM) deals, one with the largest handset distributor globally operating in 28 countries and the second with the largest mobile accessory brand in the US who also has an extensive global footprint.
Building on these initial successes, LiquidNano has continued to go from strength to strength in the mobile screen protection market;
- We have become the first Liquid Glass product to be ranged by a US mobile carrier in their corporate stores and we are currently their top selling mobile accessory.
- We have rolled out product with one customer in the US and Canada and we are in the process of launching with them in 8 additional countries during Q3, with a further 8 planned for Q4. First Purchase orders (PO) for the Q3 launch phase received and product scheduled to ship in July.
- On the back of an initial 100k unit test order from the second customer we are actively working with this customer on a global roll out plan.
- We are now ranged in the UK in Carphone Warehouse.
- We have signed 2 major UK mobile accessory distributors.
- We are in the final phase of launch planning (artwork) with a major UK mobile operator with volumes projected for 2m units in the first 12 months.
- We have signed contracts with Ireland’s largest mobile accessory distributor.
- We have signed a leading Scandinavian distributor across both mobile and automotive.
- We have signed the leading mobile accessory distributor in Australasia.
- We have signed the leading mobile accessory distributor in New Zealand.
- We are in the final phase of rolling out a contract for a global warranty product for mobile through A Grade insurance carrier.
- Year to date we are ahead of our mobile revenue target ($2.6m) with booked revenues of $2.63m as at 12th June 2019.
- Based on our current sales pipeline for mobile only sales (excluding Windshield and Fabric products) we are on target to achieve our $9m annual revenue target, having already have secured $1.2m or 39% of our Q3 targets.
Automotive Windshield Protection
LiquidNano has now launched an industry leading automotive windshield protective coating. After an extensive testing phase, we have signed our first deal in Kuwait to offer an insurance based protective windshield solutions through auto detailers and dealers for Land Rover, BMW, Volkswagen, Mercedes and Lexus in Kuwait.
We are in advanced discussion with the UKs leading motor factors to be ranged in their stores nationally and in final stage of negotiations on a global partnership with the UK largest vehicle preparation company that would give them MOQ based exclusivity in 14 countries. This company provides vehicle protection solutions to over 4 million vehicles annually in the UK market alone and would act as our master distributor.
Fabric Protection
May saw us achieve a hugely significant milestone in the growth of LiquidNano, as we successfully secured the global, exclusive, license for a brand new and unique, eco-friendly protection product for the clothing industry.
For the last 30 years, the garment industry has added Durable Water Repellent (DWR) coatings to fabrics at the factory to make them water-resistant (Hydrophobic). Theses DWR coatings contain PFOA (perfluorooctanoic acid) or C8, a synthetic chemical compound that leaves chemical residues in wastewater. These residues are bio-accumulative and suspected of causing cancer.
Greenpeace has been very vocal in campaigning for the banning of C8 within the garment industry and as a result many companies have now committed to removing C8 completely and in some cases being C0 by 2020.
The challenge is that there are no C0 DWR coatings in the market today that are durable. While they are Hydrophobic (water-resistant) they wash out after 3-4 washes which in the real world is useless.
LiquidNano, working with its lab partners in Germany for nearly 2 years has succeeded in developing a C8 free solution to this problem. This revolutionary DWR coating is extremely Hydrophobic and comes in both C0 (Hydrophobic) and C6 (Hydrophobic & Oleophobic) variants. This product is completely unique in the industry, being not only environmentally friendly, but also the treated garments remain breathable and most significantly the coating is extremely durable, in independent DWR testing lasting for over 100 washes. In short, this product has been acknowledged by industry specialists as being “an industry game changer”.
Having successfully tested this product with leading outdoor brands, Liquidnano identified a tremendous global revenue opportunity and as a consequence has now purchased a 10 year (renewable) global exclusive license on this technology (and any and all derivatives thereof).
The management team funded the first year’s license via debt and by the management giving undertakings via substantial personal guarantees. This means the license ownership, which gives an immediate and substantial value increase to the business, was achieved without any shareholder dilution.
We are now full speed ahead on the exploitation of this asset, and we expect orders by Q1 of 2020 from several performance and sports brands. The response from the initial target vertical (Outdoor/Performance Wear) has been fantastic with the consensus being that LiquidNano has an industry/game changing technology.
Whatever way you look at it LiquidNano, is poised for tremendous growth and success, be it on the back of what we are already achieving in the mobile and automotive sectors or what we are about to do in fabric protection. Either way the future looks extremely bright and we wanted to share these exciting developments with you our shareholders.