Sprintex Ltd (ASX:SIX)’s three-year agreement with Nanjing RGE to purchase standalone air supply systems including a Sprintex-Aeristech e-Compressor and controller, has put the company on track to meet its Q1 2022 milestones.
This was just one of the major highlights of the December quarter.
The agreement with Nanjing RGE has been made with a minimum order quantity of 400 units over the first two years and and a minimum order value of RMB30 million (~A$6.3m) for the first two years.
Sprintex is a clean air compressor engineering, research, product development and manufacturing company, which designs and manufactures electric and mechanically driven clean air compressors for use in a wide variety of applications, including combustion engines, hydrogen fuel cells and industrial oil-free clean air applications, including wastewater treatment.
Sprintex reported several highlights in the December quarter including:
- Completion of e-Compressor sample development and production;
- $4 million capital raise and $1 million security purchase plan;
- Appointment of Stephen Apedaile as chairman of the company;
- AGM held with significant shareholder support for all resolutions.
Sprintex announced in November 2021 that it had received commitments from investors to raise $4 million (before costs) through the issue of 53,333,334 shares in the company at $0.075 per share.
“Substantial financial and shareholder support was provided to the company in the December quarter to fund the development and supply of standalone air supply systems. Over $4 million was raised,” Sprintex managing director James Upton said.
“The company is well on track to deliver Q1 2022 product as contracted under the Nanjing RGE agreement.”
Industrial air compressor supply agreement
On October 25, 2021, Sprintex advised it had entered into a Strategic Procurement and Cooperation Agreement with Nanjing RGE Membrane Tech Co to develop and supply air supply systems used in the water treatment industry in China.
RGE is a water treatment system company which covers all provinces in China. Together with Sprintex, RGE will develop a series of stand-alone centrifugal air compressors for use in the water treatment industry.
Work has already progressed on the development of these standalone systems to suit RGE and other customers. Funds raised through the December quarter will be applied to further the development and production of these systems.
Aeristech agreement
Advancements on the final design, testing and production of each of the 6kW, 10kW and 25kW e-compressor units for Aeristech continued in the fourth quarter of 2021.
The improved design units have been delivered to Aeristech for confirmation with the terms of the agreement.
New and previous operations advance
The newly established electric compressor division from Sprintex has progressed well, with initial production and testing facilities finished during the quarter.
The design team was also expanded, with stage two production facilities expected to be completed in quarter one of 2022.
Production has re-commenced in the twin screw compressor manufacturing division following temporary closures due to COVID-19 restrictions.
The primary focus has turned to manufacturing the company’s latest Front Entry superchargers to fit Jeep JL and JT systems, and Toyota Tacoma systems.
Initial sales of the latest Jeep systems are set to start in Q1 2022.
- Written by Duncan Bailey