TORONTO, Jan. 12 /CNW/ - VentureLink LP, manager of the VentureLink Group of retail venture capital funds, with over $265 million in assets under management today announced that EcoSynthetix, Inc., a portfolio holding of the VentureLink Brighter Future Fund Inc., has closed a USD $10.1 million Class A-3B preferred share financing led by Canaccord Financial Ltd. The new funding will be used for working capital and general corporate purposes as EcoSynthetix expands its production, sales and marketing efforts in 2010.
EcoSynthetix, a portfolio company since 2003, applies Green Chemistry to transform renewable resources into high-performance biobased products, providing enhanced performance, cost benefits, and an improved environmental footprint compared to the petroleum-based products they replace. The price of $US 25.79 per Class A-3B share represents a significant premium over the average cost of preferred shares held by the VentureLink Brighter Future Fund Inc.
EcoSynthetix's biobased products have shown excellent commercial potential as substitutes for the standard petroleum-based products through multiple mill trials and commercial purchases made by some of the world's largest coated paper and paperboard manufacturers. Subsequent to the closing of the Offering, John van Leeuwan, Chairman and CEO 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."
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." Says Jim Whitaker, Managing Partner of VentureLink LP.
With over $265 million under management, VentureLink Funds is a diverse group of retail venture capital funds ("LSIF"). VentureLink Funds give investors access to dynamic industries like alternative energy as well as to well-diversified portfolios of established companies operating in traditional industries such as financial, manufacturing and service industries.
The company maintains a strong relationship with CI Financial Inc., who performs client services and client account administration for the Funds. For more information, please visit: www.venturelinkfunds.com.
EcoSynthetix Inc. ("EcoSynthetix" or the "Company") was founded in 1996 to develop green biobased materials with performance capabilities equal to or greater than those of the standard petroleum-based products. Over the past 13 years EcoSynthetix has developed a significant Intellectual Property ("IP") portfolio of patents and patent applications for protection of its disruptive technologies and is commercial with some of the largest coated paper and paperboard manufacturers globally. To find out more about EcoSynthetix please visit: www.ecosynthetix.com.
SOURCE VENTURELINK FUNDS
For further information: For further information: Jim Whitaker, Managing Partner, VentureLink LP, Tel: (416) 681-6370