Can Sprintex Secure €4.8m Dutch Agribusiness Deal and Break into China’s Aquaculture Market?

Strategic Trial with Dutch Agribusiness

Sprintex has made significant operational strides in the June quarter, highlighted by the commissioning of its enhanced Zero Liquid Discharge Universal Process (ZLD-UP) system at Mest Water’s facility in the Netherlands. This system is now undergoing on-site testing with Van Drie Group, one of the largest agribusiness companies in the country, known for its €3.2 billion annual revenue and status as the largest veal producer in the Netherlands. The trial is expected to conclude in August and could lead to an initial order valued at €4.8 million (A$8.5 million), a substantial boost for Sprintex’s revenue and a strong validation of its technology in a major European market.

Expanding Footprint in Türkiye and China

In parallel, Sprintex has expanded its distribution agreement with Net 0 Enerji in Türkiye, extending exclusivity to 2029 and increasing minimum order commitments to US$6.48 million (A$9.93 million). The company also appointed HCP Pompa Sistemleri Ltd as a new dealer, enhancing access to municipal and industrial wastewater projects in the region. Meanwhile, post-quarter, Sprintex secured a landmark A$9.4 million private-label agreement with Guangdong Baode Technology Co., Ltd (BD Compressor), marking its entry into China’s vast pond-based aquaculture market valued at over US$200 billion. This exclusive three-year deal positions Sprintex to tap into the world’s largest aquaculture sector, with initial orders expected soon.

Innovations Driving Energy Efficiency

Sprintex’s G15 jet blower demonstrated a remarkable 72% reduction in energy consumption during trials at SEA LIFE aquariums in Queensland, replacing legacy side channel blowers. This success has generated inbound interest from potential customers and underscores the company’s competitive edge in delivering energy-efficient solutions. Building on this momentum, Sprintex launched the G25 jet blower and plans to release the G37 model shortly, with pre-orders open for larger units up to 150kW. These higher-capacity blowers target larger industrial and municipal wastewater markets, promising significantly higher revenue per unit and opening doors to multi-million-dollar infrastructure projects globally.

Financial Position and Outlook

Financially, Sprintex raised A$3.15 million through an equity placement during the quarter and repaid convertible notes and loans via share issues, improving its balance sheet flexibility. However, cash flow remains tight, with only 0.53 quarters of funding available based on current operating cash flows. The company has secured two new unsecured loans totaling A$750,000 to bolster liquidity and expects incoming sales contracts to improve cash flow in the near term. Management remains focused on converting pending contracts and scaling production to meet growing demand.

Looking Ahead

Sprintex’s progress in Europe, Asia, and Türkiye, combined with its expanding product portfolio and strategic partnerships, sets the stage for accelerated growth. The upcoming results of the Van Drie Group trial and initial orders from the China private-label agreement will be critical milestones to watch. Success in these areas could significantly enhance Sprintex’s market position and shareholder value as it capitalizes on global trends toward sustainable and energy-efficient environmental technologies.