Biovation Holdings, Inc., a Mankato, MN-based manufacturer and marketer of environmentally friendly, organic and sustainable laminate materials and composites, will receive an up to $3.05m investment from MVC Capital, Inc. (NYSE: MVC).
Under the terms of the deal, MVC has funded a $1.5m note and, upon the realization of certain manufacturing, sales, and capital expenditure milestones, will fund a $1.55m preferred equity investment.
The company intends to use the funding to grow the business and bring additional products to the market.
Led by CTO Michael Riebel, Biovation produces organic material made primarily of corn and soybean co-products that, through a proprietary process, can be extruded into flat sheets or rolls, which can be printed upon and textured. The company’s green products are manufactured without formaldehyde or other hazardous and harmful items, which are currently found in nearly 100% of the laminates produced today.
Biovation will focus initially on the decorative laminates market under its Biosurf brand name. Long-term, the proprietary Biosurf product is anticipated to be used in many industries including decorative lighting, military applications, transportation, print media, and electronics.