HeiQ, a global leader in biotech ingredients and specialty chemicals for diverse applications, has been experiencing significant challenges in its core business units, including Textiles, Flooring, and Antimicrobials, due to ongoing curtailed demand and price pressure. In response, the company has initiated a restructuring plan, which includes delisting from the London Stock Exchange and selective divestments.
Swiss-based HeiQ, a leader in materials innovation, is facing continued challenging market conditions. The pressure on consumer discretionary spending has impacted textiles, flooring, antimicrobials and other established revenue lines. Despite these challenges, the company has maintained relatively stable revenue generation over the past 24 months and expects to report total revenues of approximately US$62 million for the 18-month period, which had ended in June 2024.
HeiQ has been concentrating on enhancing operational efficiency and adapting its cost structure. Sales prices remained below the usual level, while the cost of raw materials, energy and logistics remained high. HeiQ is targeting an additional cost reduction of up to 20% by the end of 2025. The restructuring plan includes reducing central organisation costs.
The administrative, regulatory and cost burden associated with maintaining the company's listing is disproportionate to the benefits. Therefore, the board has decided to cancel the listing of HeiQ’s ordinary shares on the Financial Conduct Authority’s Official List and to cancel the admission to trading of the shares on the London Stock Exchange’s Main Market for listed securities.
Furthermore, the market-leading material innovator has conducted a strategic review of its core business units and is considering selective divestments. The divestments are targeting the largest commercial business units Textile & Flooring, and Antimicrobials. Any proceeds generated from these divestments will be reinvested in HeiQ's three ventures (HeiQ AeoniQ, HeiQ GrapheneX and HeiQ Xpectra) and used to accelerate the growth of its Life Sciences business unit.
HeiQ is seeking substantial financing for its HeiQ AeoniQ venture, which, as reported in its recent trading update, recently met a key value-creating milestone by launching the world's first AeoniQ plastic-minimised sneaker in collaboration with Hugo Boss. As previously announced, the company has initiated a process to raise equity financing exclusively for the HeiQ AeoniQ subsidiary level.
HeiQ AeoniQ is a bio-degradable filament yarn to replace polyester. The proprietary manufacturing process can reproduce the properties of polyester and nylon yarns, which is currently not achievable by other cellulosic yarns. Made of sustainable raw materials such as circulose and pulp waste, each ton of HeiQ AeoniQ can potentially enable 5 tons of CO2 emission reduction.
(press release / FR)
The new Swiss Venture Capital Report was published on 26 January. It analyses 304 financing rounds closed in 2020 and includes further article such as an interview with Michael Hengartner, President of the ETH Board, and a list of Swiss "soonicorns". 
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