- Investment enables SemBioSys subsidiary to accelerate commercialization of personal care ingredients with its proprietary oleosome-based technology -
TSX symbol: SBS
CALGARY, June 30 /PRNewswire-FirstCall/ - Botaneco Specialty Ingredients
Inc. ('Botaneco'), a wholly-owned subsidiary of SemBioSys Genetics Inc.
('SemBioSys'), today announced that it has entered into an agreement for a
$4.0 million convertible debenture financing with Avrio Ventures Limited
Partnership ('Avrio Ventures'). Along with $2.4 million previously committed
from AVAC Ltd., the funding will be used to accelerate Botaneco's
commercialization of Hydresia(TM) products that target the personal care and
topical ingredients markets. In consideration of prior investments made,
SemBioSys received debentures from Botaneco totaling $5 million. Excluding the
SemBioSys debentures, the transaction assigned Botaneco a pre-money valuation
of $12.5 million.
'This transaction provides Botaneco with the financial resources necessary
to aggressively pursue opportunities in the personal care, over-the-counter
(OTC) and topical pharmaceutical markets completely independent of SemBioSys.
This is the latest in a series of steps we have made to provide Botaneco with
the technology, people and capital to operate as a separate entity and achieve
its full potential. It also allows SemBioSys to focus its resources
specifically on our pharmaceutical pipeline,' said Andrew Baum, president and
chief executive officer of SemBioSys. 'Dozens of companies are now developing
consumer products with Hydresia(TM), and we expect to see a further array of
product launches based on these ingredients in the coming quarters.'
Hydresia(TM), a natural product, is derived from safflower seeds and
offers unique functionality and aesthetic properties without compromising
performance. Strategically positioned to lead the natural personal care
movement, Hydresia(TM) is an effective replacement for synthetic, petroleum-
and animal-derived ingredients in a variety of product categories.
'The company's proven products and established relationships with personal
care consumer companies, combined with its robust technology platform and
seasoned management team, create a strong competitive advantage,' said Aki
Georgacacos, Partner of Avrio Ventures and new board member of Botaneco. 'The
double-digit annual growth in the natural personal care segment makes it one
of the fastest growing markets for global personal care products. The
company's oleosome technology is well positioned to capitalize on this trend
away from petroleum and other synthetic ingredients.
