MyCelX receives $5.4m purchase order for Regen contract

(Sharecast News) - Water and air technology developer MyCelX confirmed receiving a purchase order for the Regen contract on Tuesday, as announced on 16 November, valued at $5.4m. The AIM-traded firm said that under the order, it would provide a water treatment system using its proprietary Regen media.

It said the system would play a crucial role in ensuring the responsible discharge of clean water following stringent environmental regulations.

MyCelX's Regen media was selected based on its cost-effectiveness and consistent ability to exceed competition while meeting low-level discharge requirements.

The equipment is expected to be fully operational in the second half of 2024.

MyCelX noted that it was currently involved in two trials for deploying Regen media in produced water treatment, with the first being conducted onshore in the United States in collaboration with a domestic oil producer.

That marked the company's second venture in beneficially reusing produced water.

The second trial was happening in the Middle East as a joint effort with a global technology firm specialising in enhanced oil recovery for oil production.

"I am pleased to provide an update on this contract award, which is an important purchase order for the company, as it underpins our revenue guidance for 2024 of $17.5m," said chief executive officer Connie Mixon.

"The project win is yet further evidence of MyCelX's Regen offering gaining traction in the market, and we look forward to updating our stakeholders once the project is online, which is anticipated to be in the second half of 2024."

Mixon added that good progress was made with the company's other Regen projects in the Middle East and onshore US.

"Both of these trials, if successful, have the potential to convert into material purchase orders for the company, so we look forward to updating the market as appropriate in due course."

At 0913 GMT, shares in MyCelX Technologies were up 3.42% at 60.5p.

Reporting by Josh White for Sharecast.com.