Alexium (ASX:AJX) share price rockets 34% on sales update

Shares in the textiles producer have been surging but are currently in a pause in trading…

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The Alexium International Group Ltd (ASX: AJX) share price is surging on Thursday after the company released a sales update.

At the time of writing, Alexium shares are up 34.72% to 9.7 cents. However, they are currently in a pause in trading, pending a further announcement.

The company is a producer of advanced cooling and fire-resistant textiles. It focuses on consumer market segments such as bedding, clothing and sporting goods.

Child with superhero mask and cape flies after jumping on sofa

Image source: Getty Images

What did Alexium announce?

Last year, Alexium rebranded its proprietary biobased and biodegradable phase change materials (PCM) as BioCool.

According to today's announcement, BioCool has made strong progress in adoption and sales.

Alexium said BioCool product sales have risen to 48% of the company's total product sales for mattresses, including textile and foam applications.

Alexium Vice President Chris Crawford said of the progress: "Market reception to our BioCool product line has been very positive, and we are encouraged by the rapid adoption from our current customers."

The positive sales update has seen strong buying activity and a rise in the Alexium share price. It has rallied from a 7.7 cents open to 9.7 cents at the time of writing.

What's next for Alexium?

Alexium is targeting a number of initiatives to drive revenue growth this year.

The company said initial sales have been focused on the textiles market and migrating existing bedding textile customers to BioCool products.

The company believes the "demonstrable all-round superior characteristics" of BioCool products will make it an attractive proposition for other textile applications including foam bedding applications.

About the Alexium share price

Alexium has a market capitalisation of just $46 million.

The micro cap logged some significant gains in the past month, lifting 30% on 23 July from 4.9 cents to 6.4 cents.

Alexium shares are surging on Thursday, on the back of approximately 16.35 million shares changing hands by lunchtime.

This compares to the company's 10-day average volume of approximately 5.52 million.

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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