|1 November 2016|
Leaf Resources has raised $2.35 million to fund the commercialisation of a technology that can slash the costs of feedstocks used to make biobased products.
The cellulosic sugars used as a major feedstock for green, renewable biobased chemicals, bioplastics and biofuels, costs around $220 a tonne to convert from corn starch but with Leaf’s Glycell™ process it drops to $50.
And the funds raised from the shares placement will now be invested in the company’s first commercial project to advance Leaf’s proprietary technology.
It builds on a Memorandum of Understanding (MoU) signed last mont by Leaf Development – a joint development entity between Leaf and Claeris – with two Malaysian government agencies to advance the development of a commercial-scale, second generation bio-chemical production facility that utilises Leaf’s proprietary technology.
The Managing Director of Leaf, Ken Richards, said: “The partnership with Claeris has been a game changer for our company, as their contacts, reputation and expertise were essential in helping us secure the MoU with the Malaysian government.
“The fact that the placement was priced at a modest discount underscores the level of market confidence in our Glycell technology and the future of Leaf Resources. While there is still much work to be done, securing the additional funds that will help us take the next step forward in progressing the development of our first commercial-scale international project.”