Press release, November 19, 2024

XTPL starts bookbuilding for its series X shares

XTPL (WSE:XTP), a global supplier of groundbreaking nanoprinting solutions for the next-generation electronics market, is launching a bookbuilding process for its series X shares to be offered as part of a private placement. The Company is going to offer up to 300,000 series X ordinary bearer shares in a private placement to investors selected by the Company’s Management Board, with terms of the offering set out in the issue resolution. The issue price of one series X share will be determined after the completion of the bookbuilding, which is scheduled to continue until November 26, 2024. Based on the issue resolution and subject to the terms set out in it, Shareholders with at least 0.5% stake in the Company’s share capital at the end of the day of registration for the EGM  (November 2, 2024), which took place on November 18, will be able to acquire series X shares in order to maintain their existing shareholding. Filip Granek, a significant shareholder and CEO of XTPL S.A., declared his willingness to participate in the offering of the series X shares. Brokerage House Trigon Dom Maklerski S.A. has been engaged as a bookrunner.

In May last year, XTPL announced a plan to increase its commercial revenues 10-fold to PLN 100 million in 2026, and in November 2023 it adopted the 2023-2026 Strategy that sets it on track to achieve the financial goal. XTPL is planning to invest approx. PLN 60 million in the years 2023-2026 to intensify and accelerate its business growth, including by increasing its production capacity and strengthening sales and R&D activities. The first stage of those investments has already been completed, financed with last year's issue of series V shares whereby XTPL raised PLN 36.6 million gross. Proceeds from the issue of series X shares will allow the Company to complete the last stage of the investment process, paving the way to achieving PLN 100 million in commercial revenues in 2026.

“We’re starting the issue of series X shares addressed to investors selected by the Management Board and constituting the final stage of implementing the adopted investment process, which is expected to result in PLN 100 million of commercial revenues in 2026. The world’s leading manufacturers of advanced electronics are currently testing four prototype industrial machines fitted with our print heads. Our groundbreaking UPD (Ultra Precise Dispensing) technology is protected by around 40 patents, and we have already delivered over 30 DPS (Delta Printing System) devices to the world's most important research institutes and industrial buyers. We have clients in over 20 countries, have built a network of more than ten global distributors in the North American, Asian and European markets, and at the same time are working hard to expand our business lines with a new product called DPS+, which will significantly contribute to our performance within the Strategy timeframe. We’ve opened our first overseas Demo Center in Boston, USA, and expect it to break even quickly, anchoring XTPL well in this key market for additive technologies. The number of scientific publications referencing XTPL solutions is growing at an at unprecedented pace, which not only makes us more credible in the eyes of our global partners, but also creates completely new application fields for our technology due to its platform character. The last, most important event for XTPL will be the industrialization of our technology as part of the first industrial implementation with a global partner – we are already nearing this moment, so we expect 2025 to be a record-breaking and landmark year for us” says Filip Granek, CEO of XTPL S.A.

“I declared to the Chairman of the Supervisory Board of XTPL my willingness to participate in the offering of series X shares” Filip Granek adds.

XTPL’s business model is based on three complementary business lines. These are printing modules for industrial implementation on the production lines of global manufacturers of electronics, the Delta Printing System (DPS) prototyping devices (and a new DPS+ line of devices is being developed to address the niche between DPSs and modules for industrial implementation) and High Performance Materials (HPM, nanoinks). The Company has 9 projects at least at the second stage of processes aimed at industrial implementation of its technology (completed initial contact, identified customer needs, started technology evaluation and development by XTPL), including 4 projects at the most advanced stage, covering areas of strategic importance for the Company: semiconductors and displays. The total potential of those 9 industrial projects, assuming they are positively validated, is estimated by the Company at around PLN 400 million in average yearly revenues over the respective lives, depending on the specific nature of each project. The Company’s end clients are global entities responsible for the production of next generation electronics, including a Chinese manufacturer of machines for the sector of modern displays, a leading semiconductor manufacturer from Taiwan, one of the world’s largest producers of FPDs (Flat Panel Displays) from South Korea and a top manufacturer of industrial machines from the United States, listed on the Nasdaq 100 index.

“We’re entering the final stage of implementing the adopted investment process totalling PLN 60 million, the first stage of which resulted in a number of improvements in key areas: sales, production and R&D. The most important achievements include progress in industrial projects with global partners, almost a three-fold increase in the production capacity of DPS devices and shortening their delivery time from several months to several weeks, formation of an international business development team, and a build up of inventories, with PLN 5.0 million recognized in the balance sheet at the end of September, enough to generate sales of approx. PLN 12.0 million. In 2024 alone, we delivered or are finalizing the delivery of 11 DPS devices, and the strengthening of our presence in North America has resulted in nearly half of those products being sent to the United States and Canada. The opening of our Demo Center in Boston represents an opportunity to significantly increase the penetration of this market with our products. We also have high expectations for the new DPS+ business line, which is to be commercialized by the end of next year and which may significantly contribute to the target PLN 100 million in revenues from the sale of products and services in 2026. We sustain and believe in this revenue vision, making it the foundation of our incentive program adopted this year, and we are determined to complete the investment process, putting XTPL in the value chain of the largest global makers of advanced electronics” says Jacek Olszański, CFO of XTPL S.A.

In 2022, the value of the rapidly growing printed electronics industry was USD 51 billion (+8% YoY). In 2026, it should stand at USD 66 billion (source: IDTechEx). This means an increase in the market value at a CAGR of 7% in 2022–2026.

The new share issue will include up to 300,000 series X ordinary bearer shares of the Company. It will be carried out in a private placement to investors selected by the Company’s Management Board. The bookbuilding process began on November 18 and is scheduled to end on November 26, 2024.