Shares in innovative textiles maker HeiQ (HEIQ) jumped as much as 9% to 92p after the firm revealed it had received commercial backing from German apparel group Hugo Boss.
The two companies have signed an agreement to develop and market HeiQ’s latest high-performance, climate positive, cellulose yarn, with BOSS investing $5 million in HeiQ subsidiary AeoniQ to help fund its pilot manufacturing plant, valuing the business at $200 million.
GAME-CHANGER
Hugo Boss will invest another $4 million once AeoniQ meets certain milestones, and it has an option to increase its stake at the same valuation as it made the original investment.
HeiQ claims its new fabric is ‘a potential game-changer for the textile industry’ as it is based on a new fibre developed from the latest type of cellulosic biopolymers.
These capture carbon from the atmosphere while generating oxygen and are actually carbon negative. Moreover, the manufacturing process is projected to consume 99% less water than cotton yarns.
The firm believes its AeoniQ textile could replace synthetic filament yarns which make up to 60% of global annual textile output of 108 million metric tons according to Statista.
HeiQ has also signed an agreement with The LYCRA Company which will become the exclusive distributor for AeoniQ yarns. As well as getting involved in developing the technology for a broad range of textile applications, LYCRA is paying HeiQ ‘an undisclosed but substantial technology fee’ and will throw its commercial weight behind bringing AeoniQ to market.
