East Lansing, Mich. – March 9, 2004 - ECOSYNTHETIX INC. (www.ecosynthetix.com), a leading developer of bio-based adhesives, inks, coatings and related materials, today announced completion of $8.7 million in new equity financing. Participating in the round were Cargill Ventures, H.B. Fuller Ventures, VentureLink Diversified Balanced Fund Inc., 401 Capital Partners Inc., Northern Rivers Innovation Fund, Nadal Investments, Ltd., Tera Capital, L.P. Delta Northern Rivers Fund and H.J.G. Partnership.
“We are pleased that industry leaders with the stature of Cargill and H.B. Fuller are investing in our innovative bio-based technology,” said John van Leeuwen, chairman and CEO of ECOSYNTHETIX. “Their support is a testament to the work we’re doing and demonstrates their forward thinking.”
“These additional funds allow us to fully commercialize our products,” explained Richard Shatkosky, president of ECOSYNTHETIX. “It enables us to complete consumer testing and scale up manufacturing, and it provides us with working capital.”
ECOSYNTHETIX, established in 1996, has developed novel bio-based adhesives for corrugated and laminated packaging, as well as pressure sensitive adhesives for labels.
“We see a bright future for bio-based adhesives, and we have demonstrated their unique advantages in commercial applications,” notes Steven Bloembergen, Ph.D., founder and executive vice president technology of ECOSYNTHETIX. “Our product families offer performance unachievable by existing products. At the same time they will benefit the environment and shift our dependence on foreign oil towards agricultural resources.”
A significant portion of the round is being supported by Cargill Ventures, the venture capital unit of Cargill, an international provider of food, agricultural and risk management products and services with 101,000 employees in 60 countries. “ECOSYNTHETIX has compelling bio-based technology that will have a dramatic, near-term impact in the adhesives markets,” said Cargill Ventures President Jim Sayre, who will be joining the ECOSYNTHETIX board of directors. “We are impressed with the functionality of their products and their wide variety of applications.”
The other strategic investor, H.B. Fuller Ventures, is the venture capital arm of H.B. Fuller, a worldwide producer of adhesives and specialty products including mastics, coatings and sealants. “This is a strategic investment for us,” said Bob McGrath, managing director of H.B. Fuller Ventures. “ECOSYNTHETIX is a leader in researching and developing new economic and environmentally-sound solutions for traditional applications that are fundamental to H. B. Fuller’s adhesives products.”
About ECOSYNTHETIX Inc.
ECOSYNTHETIX Inc (www.ecosynthetix.com)
is a leader in polymer development, creating new technology platforms
by building on the strengths of biobased materials and chemically combining
them with synthetics. ECOSYNTHETIX is based in Lansing, MI, with offices
in Canada and Europe.
About Cargill Ventures
Cargill Ventures (www.cargillventures.com)
invests in emerging technology companies that enable commerce, innovation
and efficiencies and help Cargill be a global leader in providing goods
and services for life, health and growth. Cargill Ventures maintains
offices in San Mateo, CA, and Minneapolis, MN. It is a business unit
of Cargill (www.cargill.com), an international provider of food, agricultural
and risk management products and services. With 101,000 employees in
60 countries, the company is committed to using its knowledge and experience
to collaborate with customers to help them succeed.
About H.B. Fuller Ventures
H.B. Fuller Ventures (www.hbfuller.com)
is the venture capital arm of H.B. Fuller Company, a worldwide manufacturer
and marketer of adhesives, sealants, coatings, paints and other specialty
chemical products, with fiscal 2002 net sales of $1.256 billion. The
company has direct operations in 36 countries in North America, Latin
America, Europe and Asia Pacific; distributors and licensees increase
H.B. Fuller’s presence to more than 100 countries.
About VentureLink Diversified Balanced Fund Inc.
The VentureLink Group of Funds (www.skyloncapital.com)
is a group of funds managed by Skylon Capital Corp. and its subsidiary,
Skylon Advisors Inc., with approximately $190 million in net assets
in six different funds. The VentureLink Diversified Balanced Fund has
established two community small business investment funds, which in
turn invests in companies that are developing innovative new technologies,
products or services in a diverse range of industries.
About 401 Capital Partners Inc.
401 Capital Partners Inc. (www.401capital.com)
is a Canadian venture capital and private equity buy-out firm with offices
in Burlington, Ontario, Montreal and Grand Cayman.
Contacts:
Business Contact:
Richard Shatkosky
President
ECOSYNTHETIX INC.
3900 Collins Road
Lansing, MI, USA
48910
(517) 336-4623
shatkosky@ecosynthetix.com
Media & Investor Relations:
John van Leeuwen
Chairman & CEO
ECOSYNTHETIX INC.
2275 #8 Side Road
Milton, ON, L9T 2X6
Canada
(905) 335-5669 x200
vanleeuwen@ecosynthetix.com