EcoSynthetix, Inc., a developer of bio-based products, has closed a $10.1m “Class A-3B” preferred share financing led by Canaccord Financial Ltd.
EcoSynthetix, a portfolio company of the VentureLink Brighter Future Fund Inc., since 2003, applies green chemistry to transform renewable resources into high-performance bio-based products. Its target is to provide enhanced performance, cost benefits, and an improved environmental footprint compared to the petroleum-based products they replace.
The new funds will be used for working capital and general corporate purposes as the company expands its production, sales and marketing efforts in 2010.
Commenting on the funding, John van Leeuwan, Chairman and CEO of the company, stated: “this fundraising will position EcoSynthetix to execute on its goals of being the world’s leading supplier of biolatex TM emulsions helping our customers reduce their reliance on petroleum-based products.
“2010 should be an exciting year where we expect to execute a number of successful mill trials and significantly increase our sales volumes”.
Jim Whitaker, Managing Partner of VentureLink LP, added that EcoSynthetix has the opportunity to replace a sizeable portion of the four billion pounds of petroleum-based latex used in the production of coated paper and paperboard.
The company is based in Lansing, MI, and Milton, Ontario, Canada.