EcoSynthetix Secures $2.1 Million to Advance EcoMer® Technology Platform
- SDTC grant to fund large-scale demonstration facility -
BURLINGTON, ON, Jan. 25, 2012 /CNW/ - EcoSynthetix Inc. (TSX: ECO), a renewable chemicals company that produces a family of commercially proven bio-based products, today announced that it has secured $2.1 in funding from Sustainable Development Technology Canada (SDTC). This funding will support a project for the further development of EcoSynthetix's novel EcoMer® bio-based monomer platform that has the potential to address a $30 billion target market across multiple industrial applications such as toners, water-based inks, water-based paints and coatings, surfactants and Pressure Sensitive Adhesives (PSAs).
"Our Government is committed to supporting clean technology in Canada as an effective measure to reduce greenhouse gas emissions and create high-quality jobs for Canadians," said the Honourable Joe Oliver, Minister of Natural Resources. "This project demonstrates our leadership in driving clean technology innovation to help create viable new industries for Canada's economy."
"Petroleum-based polymers play a central role in modern society and multiple industries are actively seeking lower cost alternatives to these products. The commercialization of our bio-based EcoMer® solution will expand our addressable market from roughly $6 billion to $30 billion annually and offer a low cost, green solution to industries that currently have no viable alternative to petroleum," said John van Leeuwen, Chairman and CEO of EcoSynthetix. "We will be working closely with two key potential customers for EcoMer® who possess formulation and engineering expertise to more efficiently develop and commercialize this product. The industrial community greeted EcoMer® with substantial interest at pilot scale and the demand for low cost, bio-based alternatives will continue to grow across all of our target markets as petroleum prices remain high and volatile."
"It is simply undeniable that clean technologies bring tremendous benefits to Canadians, and the only way for these benefits to materialise is once the technology passes through the research and development phase and into commercialization," said Vicky Sharpe, SDTC President and CEO. "SDTC is proud to play a role in bringing EcoSynthetix's EcoMer® to the market, answering the call for a cleaner way to do business."
EcoMer® is a bio-based monomer that can be used to partially replace a wide variety of petrochemical monomers in the manufacture of traditional polymers. The addition of EcoMer® to these formulations makes the resulting polymers ''greener'' and gives them new functionality. EcoStix®, which is produced by chemically reacting EcoMer® with an acrylic monomer, functions as a PSA with customizable properties for applications such as fruit labeling, recycling-friendly materials such as tapes, paper labels and postage stamps, and high temperature resistant labels for automotive (''under the hood'') applications.
The waterborne sugar-acrylic adhesives and resins that EcoMer® can be developed into are considered ''Generally Recognized As Safe'' by the U.S. Food and Drug Administration and contain no Volatile Organic Compounds (VOCs), which make suitable as a broad-based building block material in the chemical industry as they are safer to use than petrochemical monomers.
About EcoSynthetix Inc. (www.ecosynthetix.com)
EcoSynthetix Inc. is a renewable chemicals company specializing in bio-based products that can be used as inputs in industrial manufacturing for a wide range of consumer products. The Company's products offer a reduced carbon footprint and are marketed primarily on the basis of lower cost, stable pricing and equal or superior performance. EcoSynthetix's lead product, ECOSPHERE® BIOLATEX® binders, is used commercially by a number of the global top 20 manufacturers in the coated paper and paperboard industry.
About SDTC (www.sdtc.ca)
SDTC is an arm's-length foundation created by the Government of Canada as part of the Government's commitment to create a healthy environment and a high quality of life for all Canadians.
SDTC operates two funds aimed at the development and demonstration of innovative technological solutions. The $590 million SD Tech Fund™ supports projects that address climate change, air quality, clean water, and clean soil. The $500 million NextGen Biofuels Fund™ supports the establishment of first-of-kind large demonstration-scale facilities for the production of next-generation renewable fuels.
SDTC operates as a not-for-profit corporation and has been working with the public and private sector including industry, academia, non-governmental organizations (NGOs), the financial community and all levels of government to achieve this mandate.
Forward Looking Statements
Certain statements in this Press Release constitute "forward looking" statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, objectives or achievements of the Company, or industry results, to be materially different from any future results, performance, objectives or achievements expressed or implied by such forward looking statements. These statements reflect our current views regarding future events and operating performance and are based on information currently available to us, and speak only as of the date of this Press Release. These forward looking statements involve a number of risks, uncertainties and assumptions and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such performance or results will be achieved. Those assumptions and risks include, but are not limited to, the fact that our results of operations and business outlook are subject to significant risk, volatility and uncertainty. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward looking statements, including the factors identified in the "Risk Factors" section of the Company's supplemented prospectus dated July 27, 2011. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described in this Press Release as intended, planned, anticipated, believed, estimated or expected. Unless required by applicable securities law, we do not intend and do not assume any obligation to update these forward looking statements.
For further information:
| EcoSynthetix Inc. |
John van Leeuwen
Chairman & Chief Executive Officer
Phone: (289) 288-5010
| Investor Relations |
Phone: (416) 815-0700 (Ext.238)