Symphony Environmental Technologies Plc, has signed a collaboration agreement and commitment to a strategic investment with Eranova SAS, a company registered in France.
Eranova has developed a unique technology and process, which extracts starch from algae for use with other materials. The starch can be combined with other polymers to produce compounded resins which are compostable and biodegradable. These can be used to manufacture a wide range of finished products ("bioplastics").
In addition, the Technology can be developed to produce biofuel, biopolymers, proteins for food and animal feed stock, as well as by-products for the pharmaceutical and cosmetic industries. Eranova is the applicant for PCT patent WO 2017/0463656 A1 and the application has been registered in several territories.
The importance of the Technology is that it will be possible to manufacture polymers from natural raw materials without the need to use arable land and fresh-water resources normally used for growing food crops.
There is also a synergy with Symphony's existing technologies to enhance the technical performance of polymers that will use the Technology.
The main terms of the Agreement are:
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The Group will initially subscribe €500,122 ($596,986) for an eight percent shareholding in Eranova when fully funded to start its pre-industrial development
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The Group will have an option to subscribe at market value for further shares to increase its shareholding to 51 percent of Eranova's enlarged issued share capital, exercisable in one or more tranches at any time within three years after the initial investment
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Symphony will have representation on the Board of Eranova
The Subscription is subject to completion of due diligence to the satisfaction of Symphony's Board including confirmation that all other funding for Eranova is in place and ready to draw down to start its pre-industrial development. The Subscription is financeable within Symphony's current resources.
In addition, Symphony will have the right to purchase 75 percent of Eranova compound made in the Middle East and North Africa, for sale as compound or in manufactured finished products within the Middle East region exclusively, and on a non-exclusive basis globally, excepting thirteen (mainly European) countries for which Eranova will have exclusivity.
Eranova requires a total of €4,790,000 ($5,717,731) to start its pre-industrial development and Symphony's investment represents one of the final tranches required. The project has won the backing ofADEME, (the French Environmental & Energy Management Agency), who after due diligence by KPMG, are supporting the project with €1,031,000 ($1,230,685) of funding.
Eranova is also receiving funding from PACA (the French region of Provence Alpes Cote 'd'Azur) together with private investment and soft loans.
Pre-industrial development is expected to start in the second half of 2018 and will consist of constructing long seawater tanks, called "raceways", where Eranova will optimise cultivation of algae for the production of the starch extract. The raceways constructed during this phase will represent 1/50 scale of a full commercial facility and will cover 1.2 hectares.
This phase will also involve conversion of the resultant starch into bioplastic compounds. Eranova has signed an agreement to begin installation of the pre industrial development with the Grand Port de Marseille, and TOTAL TDR, a division of the TOTAL petrochemical company, will be supporting certain employment costs due to the innovative nature of the Technology.
(Source: Symphony Environmental Technologies PLC)