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MYCELX Technologies shares fell sharply on Thursday, October 8, after the water-treatment company warned that two customer-related setbacks would reduce or defer an estimated $3 million to $3.5 million of revenue previously expected in fiscal 2026. The company said about $2 million tied to a Middle East project would move into fiscal 2027, while a prolonged disruption at a major customer’s offshore site could cut this year’s revenue by a further $1 million to $1.5 million.
Investing.com reported the shares were down about 22% following the update. MYCELX, which is listed on London’s AIM market, said the changes reflected timing and operating interruptions rather than the cancellation of the Middle East project. The company also disclosed a short-term loan facility from Chief Executive Connie Mixon, adding a financing measure to an update centered on weaker near-term revenue.
Middle East project moves into fiscal 2027
MYCELX said its fiscal 2026 revenue expectations had depended on the timing of a significant project for an overseas customer in the Middle East. To deliver the equipment before the company’s year-end, it needed to receive the customer’s purchase order within a specific fabrication window. That order had not arrived in time, the board said.
The company now expects the project’s approximately $2 million in revenue to be delivered in fiscal 2027, increasing that year’s expected total revenue by the same amount. MYCELX said the customer had indicated it remained committed to carrying out the project and its current and future expansion plans. The announcement did not provide a new purchase-order date or a revised delivery timetable beyond the move to the next financial year.
Offshore disruption weighs on media sales
A separate problem involves sales of MYCELX’s media product, which the company sells to customers for water-treatment applications. One major customer experienced disruption at a high-production offshore site. MYCELX said it initially expected the shutdown to be relatively short, but recently learned that resolving the site’s issues would take longer than anticipated.
The extended disruption is expected to reduce media sales and fiscal 2026 revenue by an estimated $1 million to $1.5 million. Together with the delayed Middle East project, the two items amount to roughly $3 million to $3.5 million of revenue that had been expected in the current financial year. The company did not identify either customer in its announcement or specify a revised fiscal 2026 revenue forecast.
Company points to contracts in its pipeline
In its update, MYCELX said the current pipeline includes 11 potential project awards expected over the next six to 12 months. The opportunities involve two U.S. supermajor oil companies and one Middle Eastern national producer and could have a combined value of $20 million to $22 million, according to the company. MYCELX cautioned that the timing of awards would determine when projects could be delivered and revenue recognized.
The board said individual delays and production interruptions are common in the company’s core markets, and argued that its scale-up strategy should make any single disruption less significant as the business expands. Chief Executive Mixon said the company remained focused on securing contracts in the United States and overseas and remained confident in its 2027 outlook. Those comments are the company’s assessment; the potential awards are not confirmed contracts.
CEO agrees to unsecured bridge facility
MYCELX also said it had agreed to a short-term bridge loan of up to $500,000 from Mixon to provide working-capital flexibility. The company can draw the facility in whole or in part during its nine-month term; it carries 10% interest and is unsecured.
Because Mixon is a company director, MYCELX classified the agreement as a related-party transaction under AIM rules. The company said the directors other than Mixon, after consulting its nominated adviser Cavendish Capital Markets, considered the loan’s terms fair and reasonable for shareholders. The announcement did not say how much, if any, had been drawn down.
