Investment will speed commercialization of Inocucor's second- and third-generation sustainable accelerators for agriculture and position the company for a major round of financing to fuel its growth
MONTREAL, Feb. 3, 2015 /PRNewswire/ -- Inocucor Technologies, Inc., (www.inocucor.com) the Montreal-based ag biotech company that develops sustainable soil, seed and plant accelerators for agriculture, today announced it has raised an interim round of investment capital from two of Canada's leading financial groups.
Cycle Capital Management (www.cyclecapital.com), a Montreal Cleantech venture capital fund that made its first investment in Inocucor in late 2013, led the round with participation from Desjardins Innovatech, Canada's leading cooperative financial group with more than $200 billion in assets.
The investment will fund further commercialization of Inocucor's patented technology, which uses fermentation similar to winemaking--employing up to an unprecedented 15 strains of compatible yeasts and bacteria--to produce powerful solutions that improve seed germination and increase crop yields.
"All eyes in agriculture are focused on biological, rather than chemical, solutions to improve yields and build healthy soils," said Donald R. Marvin, president and CEO of Inocucor. "Cycle Capital and Desjardins are helping fund Inocucor's important mission to create new sustainable products that help farmers feed a growing world population."
Marvin said this investment sets the stage for the imminent launch of a major equity financing to accelerate the company's commercialization of its second-generation cell-free bio-stimulation product targeting the production agriculture market. Proceeds from this financing may also be used to acquire complementary technologies and products currently under review by the company.
"Over the past year, we have watched Inocucor achieve several important technology and product development milestones and are very excited to continue our investment in the company to pursue its development," said Andrée-Lise Méthot, founder and managing partner of Cycle Capital Management.
Roland Leger, Investment Manager for Desjardins Innovatech, said "We look for cutting-edge companies with game-changing technologies that have the capability to impact and transform major world markets. We found that at Inocucor and are very pleased to join this financing."
Inocucor's growth strategy is focused on establishing commercial partnerships that include its intellectual property as a key ingredient for new bio-stimulation and bio-protection products for large-scale production farmers. It also plans to make strategic acquisitions that will speed the commercialization of its proprietary microbial consortia technology and broaden its product pipeline.
Last September, Inocucor cemented its first commercial strategic partnership with Axter Agrosciences Inc., one of Canada's leading providers of foliar feeding crop solutions, to develop products based on the combined action of Inocucor's second-generation cell-free growth stimulant and Axter's biostimulants, CropBooster® and RR SoyBooster®.
In October, Inocucor and McGill University signed a research and licensing agreement to co-produce a new class of sustainable bio-stimulant products for large-scale agriculture that have the potential to increase crop yields by at least 10 to 15 percent.
Inocucor's first-generation product, Garden Solution®, is currently being sold to organic farmers, traditional farmers and greenhouse growers in the U.S. It has been shown to consistently speed germination and increase crop yields by an average of 10 to 15 percent. Its Aqua Solution® is sold as a water conditioner for ornamental ponds in Canada.
About Inocucor Technologies, Inc.
Inocucor Technologies, Inc., based in Montreal, is an ag biotech company that develops sustainable biological products for agriculture targeting the phyto-microbiome—the seeds, plants, root systems and the soil surrounding them. Inocucor's first-generation product, Garden Solution®, employs live microbes to actively improve the health of the entire phyto-microbiome. Future generations of Inocucor products are powerful cell-free biological solutions for bio-stimulation and bio-protection in mainstream production agriculture. For more information, visit www.inocucor.com.
About Cycle Capital Management
A pioneer among Canadian venture capital funds focused on the clean-tech sector, Cycle Capital invests in companies developing and commercializing clean technologies and striving to reduce greenhouse gas emissions, optimizing resource use, and improving process efficiency throughout a product's life cycle. With assets under management of $230 million, Cycle Capital invests in Quebec and northeastern North America. Cycle Capital is composed of experienced investment professionals, strategic advisors, and industrial partners with in-depth knowledge of the sector. Cycle Capital has a special relationship with its strategic partners, notably Brookfield Renewable Energy, Rio Tinto Alcan, Cascades, Master Group, Lonza, Gaz Métro, Systemex Énergies, Aluminerie Alouette, and Hydro-Québec.
About Desjardins Innovatech
Desjardins –Innovatech provides capital, business network and expertise to assist companies and cooperatives in their growth, expansion, mergers, acquisitions or IPO.
Contact: Michele Wells, Wells Communications, 303-417-0696
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SOURCE Inocucor Technologies, Inc.