Alexium International Group Ltd: Strategic Expansion and Capital Raising in December 2025

Alexium International Group Ltd (ASX: AJX) has announced a two‑part corporate event that combines a strategic acquisition with a significant capital‑raising initiative. The company, which specialises in protective textiles, self‑decontaminating paints, and phase‑change material (PCM) technologies, is now positioned to broaden its product portfolio and scale its operations.

1. Acquisition of Microtek Laboratories’ PCM and Microencapsulation Business

On 15 December 2025, Alexium disclosed the purchase of the full microencapsulation and PCM division of Microtek Laboratories from CAVU Group. The transaction is valued at $2.17 million in Alexium shares to be issued under the company’s placement capacity. Microtek’s temperature‑controlled packaging arm (Adaptek™) remains with CAVU, so the deal is strictly focused on PCM and microencapsulation assets.

This acquisition is a strategic fit for Alexium for several reasons:

  • Complementary technology – Alexium’s core competency lies in advanced phase‑change materials and flame‑retardant chemistries. Microtek’s PCM portfolio expands the range of temperature‑controlled solutions that Alexium can offer to defence, aerospace and industrial markets.
  • Intellectual property enrichment – The deal includes Microtek’s intellectual property, strengthening Alexium’s patent portfolio and creating opportunities for cross‑licensing or new product development.
  • Revenue diversification – By adding Microtek’s microencapsulation expertise, Alexium can tap into the growing demand for encapsulated additives in paints, coatings and polymer blends, thereby diversifying its revenue streams beyond its current protective textiles and self‑decontaminating paint lines.

2. Non‑Renounceable Entitlement Offer to Raise Capital

In tandem with the acquisition, Alexium is launching a fully underwritten, non‑renounceable entitlement offer designed to raise approximately $6.77 million. The offer is structured as a pro‑rata rights issue:

  • Entitlement – Eligible shareholders receive the right to purchase 3.4414 new shares for every five existing shares held on the record date.
  • Price – The issue price is set at $0.006 per new share.
  • Timeline – Applications open on 23 December 2025 and close at 5:00 pm (WST) on 16 January 2026, unless extended by law.
  • Use of proceeds – While the announcement does not detail specific allocations, proceeds are expected to fund the Microtek acquisition, support ongoing research and development, and possibly enhance liquidity.

The entitlement offer is non‑renounceable, meaning shareholders cannot transfer their rights to another party. This structure is typical for companies seeking to maintain control over who participates in the capital raise, often favouring existing investors who are familiar with the company’s strategic direction.

3. Corporate Governance Updates

Recent disclosures have also highlighted changes in director interests and the issuance of unquoted equity securities:

  • Director interest notice – On 12 December 2025, the company filed a notice under ASX Rule 3.19A.2 detailing changes in Director T. Randall Lane’s holdings. This filing is part of the ongoing transparency required by the Corporations Act.
  • Unquoted security issuance – The same day, Alexium announced the issuance of 135,768,408 share appreciation rights (AJXAF) under an employee incentive scheme. These rights are not intended to be quoted on the ASX and will provide employees with potential upside tied to share performance.

Both filings underscore the company’s commitment to regulatory compliance while also signalling an active effort to align employee incentives with long‑term shareholder value.

4. Market Context and Financial Snapshot

Alexium operates within the Materials → Chemicals sector, listed on the ASX All Markets. As of 11 December 2025, its share price stood at AUD 0.007, well below the 52‑week low of AUD 0.005. With a market capitalisation of approximately AUD 11.3 million, the company remains a small‑cap player, yet its focused technology portfolio positions it to capture niche market opportunities.

Financial metrics highlight a negative price‑earnings ratio of -1.87, reflecting the company’s current stage of investment and limited earnings. The rights issue and acquisition are therefore crucial to sustaining growth and delivering future profitability.

5. Outlook

The combination of a strategic technology acquisition and a capital raise signals that Alexium is aggressively pursuing growth in high‑value defence and industrial segments. If the entitlement offer proceeds as planned and the integration of Microtek’s assets unfolds smoothly, the company could broaden its product range, enhance its IP position, and strengthen its competitive stance against larger chemical and materials firms.

Investors and stakeholders will likely monitor the following:

  • Execution of the Microtek deal – How quickly and effectively the company can assimilate the new PCM and microencapsulation capabilities.
  • Use of proceeds – Whether the capital raised is deployed primarily towards the acquisition, R&D, or working capital.
  • Share price performance – Post‑offer, the share price will reflect market confidence in the company’s strategy and the perceived value of the new assets.

In sum, Alexium International Group Ltd is at a pivotal juncture, leveraging its niche expertise to broaden its technological footprint while simultaneously ensuring it has the financial resources to support its ambitions.