- 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
|SOURCE SemBioSys Genetics Inc.|
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